Medical Practice Balanced Scorecard


Published on

A Balanced Scorecard (BSC) For The Medical Practice

1 Like
  • Be the first to comment

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Medical Practice Balanced Scorecard

  1. 1. The Balanced ScorecardMaximizing Performance andMaintaining Results ForYour Medical Practice 1
  2. 2. What Is A Balanced Scorecard? Driven by the medical practice’s Vision and Strategy Based on four performance drivers from the perspectives of: 1. Patient Experience 2. Internal Processes 3. Employee Learning and Growth 4. Financial Outcome 2
  3. 3. What Is The Purpose of A Balanced Scorecard? The measures selected for the Balanced Scorecard (BSC) represents a tool of the client to use in communicating to staff, owners, and investors the outcome of performance drivers by which the medical practice will achieve its mission and strategy objectives. 3
  4. 4. The Patient PerspectiveWhen choosing methods and measures for the patientperspective of the BSC, the client should answer three criticalquestions: Who are our target patients? What is our value proposition in servicing them? What do our patients expect from our practice?Measures for the patient perspective typically are:  Patient Satisfaction  Patient Retention  Market Share  Patient Acquisition. 4
  5. 5. The Internal Process PerspectiveThe business owner should identify the key processes thepractice must excel at in order to continue adding value forpatients and ultimately practice owner(s).The task here is to identify processes that add to the valueproposition and develop the best possible objectives andmeasures with which to track progress:  Cycle-time improvement  Efficiencies in workflow  Optimization of patient-facing time 5
  6. 6. The Employee Learning and Growth PerspectiveThe objectives and measures of the Employee Learning andGrowth Perspective of the BSC are really the enablers of theother three perspectives.Identify the gaps between the current organizationalinfrastructure:  Staff skills (human capital)  Information systems (informational capital)  The practice environment required to achieve success (organizational capital) 6
  7. 7. The Financial PerspectiveThe objectives and measures in this perspective willtell the business owner whether the strategyexecution is leading to improved bottom-line results.Classic lagging measures are reported in theFinancial Perspective. Typical examples include:  Profitability  Revenue growth  Asset utilization 7
  8. 8. What Is A Dashboard?Name derived from the instrumentation of a car dashboard 8
  9. 9. Leading and Lagging MeasuresA Leading Measure A Lagging Measure 9
  10. 10. Leading and Lagging MeasuresLagging MeasuresA “snapshot” of yourcurrent stateLeading MeasuresPredictors of yourfuture forecast 10
  11. 11. Maintaining The Balanced ScorecardEstablishing Balanced Scorecard Policies, Procedures,and Processes Long-range strategic planning Reporting timeframes Roles and responsibilities Thresholds of performance Changing objectives, measures, and targets The Balanced Scorecard Is Never “Complete” 11
  12. 12. Maintaining The Balanced ScorecardLong-range Strategic PlanningThe scorecard should be at the forefront of strategic planningAfter the initial development of a scorecard,some organizations tend to revert back totheir previous methods. The business ownershould continue to work with the developerto define the scorecard’s role in the processon an on-going basis, ensuring that it willremain the key tool in the effective executionof strategy 12
  13. 13. Maintaining The Balanced ScorecardScorecard TimeframesData will need to be collected and entered into thescorecard whether it is automated or not. Thoseresponsible for providing data must be aware of thetimeliness associated with reporting and the importance oftimely and accurate data submission. 13
  14. 14. Maintaining The Balanced ScorecardRoles and ResponsibilitiesDetermine who is accountable for administering the scorecardsystem in the practice and what their responsibilities are. Someonein the practice must be seen as the scorecard’s “owner.”In the case of a medical practice, this should ideally be the PracticeAdministrator. Whoever the owner is, that person must be able tocoordinate the collection of data, summarize and analyze the data,and ultimately report the practice’s performance to the businessowner on a monthly basis. 14
  15. 15. Maintaining The Balanced ScorecardChanging Objectives, Measures, and TargetsShould you allow a mid-year change in any of the performanceindicators?Changes should be permitted only in clearcases of a misguided objective, measure ortarget. Perhaps the calculation of a measureis leading to incorrect decision making or thetarget’s perceived difficulty is demotivatingthe staff. In these situations a change maybe warranted. 15
  16. 16. The Balanced Scorecard - RecapDriven by the medicalpractice’s Vision and The measures selected forStrategy the Balanced Scorecard represents a tool of theBased on four client to use inperformance drivers from communicating to staff,the perspectives of: owners, and investors the • Patient Experience outcome of performance • Internal Processes drivers by which the • Employee Learning medical practice will and Growth achieve its mission and • Financial Outcome strategy objectives. 16
  17. 17. The Balanced Scorecard Questions 17