Developing a Balanced Score Card Session 1 Viki Massey, Quality Coordinator A Joint Venture of...

Developing a Balanced Developing a Balanced Score CardScore Card

Session 1Session 1

Viki Massey, Quality Coordinator

A Joint Venture of London Health Sciences Centre and St. Joseph’s Health Care London

When you can measure what you are When you can measure what you are speaking about, and express it in speaking about, and express it in

numbers, you know something about it; numbers, you know something about it; but when you cannot measure it, when but when you cannot measure it, when you cannot express it in numbers, your you cannot express it in numbers, your

knowledge is of a meager and knowledge is of a meager and unsatisfactory kind.unsatisfactory kind.

William Thompson (Lord Kelvin), 1824-1907William Thompson (Lord Kelvin), 1824-1907

What is a Balanced Score Card?What is a Balanced Score Card?

1) A measurement system

2) A strategic management system

3) A communication tool

BSC as a Measurement SystemBSC as a Measurement System

Translates mission, vision and strategy through objectives and measures

Provides a framework to describe the key elements in the achievement of the strategy

Measures four perspectives- Customer Relations- Financial- Internal Service Process - Learning, Innovation and Growth

BSC as a Measurement SystemBSC as a Measurement System

Financial

Customer Relations

Learning, Innovation and

Growth

Internal Service Process

Vision and Strategy

Financial PerspectiveFinancial Perspective

What financial steps are necessary to ensure the execution of our strategy/goals?

Are the program’s/ department’s goals, implementation, and execution contributing to the bottom line?

Are we meeting operational and financial targets?

Dimensions of Quality: – Efficiency

Internal Service Process Internal Service Process PerspectivePerspective

What critical processes must we excel at to satisfy our customers/stakeholders?

What must be done internally to meet patient/customer expectations?

Dimension of Quality: – Effectiveness– Appropriateness– Safety

Customer Relations Customer Relations PerspectivePerspective

Who are our target customers? How do our patients/customers see us? How do patients/customers rate our

performance? Dimension of Quality:

– Accessibility– Acceptability– Continuity

Learning, Innovation and Growth Learning, Innovation and Growth PerspectivePerspective

How can we continue to improve? What capabilities and tools do our

employees need to execute our strategy/goals?

Dimension of Quality:– Competence– Participation

BSC as a Strategic Management BSC as a Strategic Management SystemSystem

Translates strategy into: Objectives Measures Targets Initiatives

Translating with the BSCTranslating with the BSC

Desired state

Differentiating activities

What must be done

well to implement

strategies

How strategic

success is

measured

Mission

Vision

Strategy/Goals

ObjectivesIn each perspective

MeasuresIn each perspective

LLSG Mission StatementLLSG Mission Statement

In the spirit of innovation and collaboration, London Laboratory Services Group (LLSG) provides the health care system with appropriate and comprehensive diagnostic, therapeutic and consultative services of the highest quality.

LLSG Goals/StrategyLLSG Goals/StrategyThe London Laboratory Services Group will:

be recognized as a centre of excellence and leader in providing diagnostic services

develop an understanding of the needs of the users of our services

be responsive to the needs of other health care providers communicate openly with users of our services be a leader in developing and implementing new technologies provide diagnostic and therapeutic services for the hospital,

the region and beyond

LLSG Goals/Strategy cont’dLLSG Goals/Strategy cont’d

The London Laboratory Services Group will:

provide cost effective and efficient services provide an atmosphere of team work which is responsive to

and supportive of learning collaborate with researchers to advance medical science partner with educational institutions to provide training for

medical professionals develop partnerships with industry and other institutions

which will enhance the range and scope of laboratory services

BSC as a Communication ToolBSC as a Communication Tool

Describes and translates strategy to

employees through clear and objective performance measures

Example

Goal: LLSG will provide cost effective and efficient services

Objectives: Reduce costs

Increase productivity

Measures: Supply costs

Workload

Today’s ExerciseToday’s Exercise

Form 4 groups- one for each perspective

Within each group:

1. Appoint a scribe/presenter

2. Brainstorm objectives

3. Record all objectives

4. Present objectives to other groups

5. Record other objectives as suggested by the other groups

Brainstorming ExerciseBrainstorming Exercise

Purpose: to generate multiple ideas, in this case for developing BSC objectives

BSC ObjectivesBSC Objectives

1. Describe the activities that we must perform well to successfully implement strategy/goals

2. Answer the questions associated with each perspective

3. Start with an action verb: increase, develop, improve, lower, achieve etc.

Brainstorming ExerciseBrainstorming Exercise

Rules:1. No idea is a bad idea

2. Be creative

3. Take risks

4. No criticism allowed

Brainstorming ExerciseBrainstorming Exercise

Method: Round Table

1. Out loud; round robin, one by one, each person states an idea which the scribe then records

ORIn silence; write ideas down on sticky notes. Pass notes to scribe to review out loud and record

2. Continue around the table until all ideas are exhausted

Next StepsNext Steps

Review BSC perspective guides Review objectives generated by the

brainstorming exercise Consolidate and clarify objectives Vote on top candidates Trim list to a maximum of 3 per BSC

perspective

ReferenceReference

Balanced Score- Step by Step: Maximizing Performance and Maintaining Results

Paul R. Niven