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  • 1. Balanced Scorecards Tools to Increase Organizational Alignment A Presentation for the 2004 OHA Annual Meeting Missy Richard Kendall L. Stewart, M.D. June 14, 2004
  • 2. What is the point?
    • We all long to work and serve in organizations that are committed to excellence.
    • We all understand that excellence is hard to achieve and still harder to sustain.
    • We are all looking for strategies and tools that will help us make a difference.
    • The balanced scorecard is one such tool.
    • Implementing these powerful tools to increase organizational alignment and accountability is neither easy nor simple.
    • But the results they can produce are worth the effort.
    • We will share one of ours.
    • After listening to this presentation, you will be able to
      • List three strategies that will assist you in your pursuit of organizational excellence,
      • Identify three elements of a balanced scorecard (BSC),
      • Give three reasons why using scorecards makes sense,
      • Discuss three difficulties you can anticipate when launching your BSC,
      • Suggest three practical strategies for overcoming these difficulties, and
      • Point to several resources that can be helpful to you in your passionate pursuit of organizational excellence.
  • 3. What are the foundations of organizational excellence? People Planning Process Performance
  • 4. What practical strategies will promote the creation of a culture of excellence?
    • People
      • Embrace discomfort.
      • Identify champions.
      • Develop leaders.
      • Define the “Rules of Engagement.”
      • Extrude negative leaders.
    • Planning
      • Align the organization around your strategic values.
      • Adopt a framework for organizational excellence.
      • Adopt a process improvement methodology.
      • Deploy a simple strategic planning process.
      • Take the long view.
    • Process
      • Design and deploy an organizational change process.
      • Deploy leadership teams throughout the organization.
      • Document key organizational processes
      • Empower a limited number of interdisciplinary process improvement teams.
      • Engage stakeholders in real work.
    • Performance
      • Identify key performance indicators.
      • Demand comparative data.
      • Set measurable short- and long-term goals.
      • Insist on detailed action plans.
      • Deploy balanced scorecards (BSCs) throughout the organization.
  • 5. What exactly is a balanced scorecard (BSC)?
    • This is a collection of key indicators that reflect the department’s performance.
    • They are “measures that matter.”
    • The indicators are chosen based on the organization’s strategic values.
    • These report cards include a “balance” of leading (performance drivers) indicators and lagging (outcome) indicators.
    • The leading indicators should support the lagging indicators on the scorecard.
    • Monthly indicators are preferred but these may not always be available.
    • Whenever possible, these indicators should be compared against best national practices; your performance should be percentile-ranked against a regional or national database.
  • 6. Why does using balanced scorecards make sense?
    • They force users to focus on performance.
    • They force leaders to focus on meaningful indicators.
    • They require leaders to manage by fact.
    • Since everyone in the organization begins searching for their own indicators that support the organization’s strategic objectives, BSCs increase organizational alignment.
    • They naturally encourage improved performance and benchmarking.
    • They enhance communication and networking.
    • BSCs demand accountability and call for action plans.
    • BSCs strongly support continuous organizational improvement
  • 7. What difficulties can you expect?
    • Identifying the right indicators is hard work.
    • Finding national benchmarks can be difficult.
    • Following too many metrics is a constant temptation. More is not necessarily better.
    • Collecting the data may be a barrier.
    • Achieving consensus about key indicators is usually a challenge.
    • Those who have never been forced to “manage by the numbers” may feel overwhelmed.
    • After key indicators have been selected, directors will experience definite pressure to “make the numbers.”
    • This opportunity to embrace an important tenet of the for-profit business world is critical to your organization’s continued success. However, higher expectations always bring discomfort. This is a good thing.
  • 8. What strategies will help launch your balanced scorecard successfully?
    • Stop waiting until you have the perfect indictors and the perfect data. You never will.
    • Stop waiting on senior leaders to figure this out. Some never will.
    • Find colleagues who’ve done it and pick their brains. They are eager to help.
    • Brush off criticism. Leaders take heat for two things—doing the wrong thing, and doing the right thing!
    • Find or create comparative data. This is your secret to success.
    • Abandon flawed indicators. People hate meaningless work.
  • 9. Where can you learn more?
    • Kaplan RS and Norton DP, The Balanced Scorecard . Harvard Business School Press, Boston, 1996.
    • Kaplan RS and Norton DP, “The Balanced Scorecard - Measures That Drive Performance,” Harvard Business Review, January - February 1992.
    • Kaplan RS and Norton DP, “Putting the Balanced Scorecard to Work,” Harvard Business Review, September - October 1993.
    • Stewart KL, “Team Leadership: Some Guidelines for Making It Work,” A SOMC White Paper, 2000.
    • Stewart KL et, al., A Portable Mentor for Organizational Leaders . SOMCPress, 2003
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  • 10. How can you contact us? Kendall L. Stewart, M.D. Medical Director Southern Ohio Medical Center President and CEO The SOMC Medical Care Foundation, Inc Phone: 740.356.8153 Email: Missy Richard Physician Recruiter Southern Ohio Medical Center Phone: 740.356.8428 Email:
  • 11. Southern Ohio Medical Center  Safety  Quality  Service  Relationships  Performance  What questions remain?