1. Overview of the Balanced Scorecard Concept
ISE 468 ETM 568 Spring 2017
Dr. Joan Burtner
Associate Professor and Chair, Department of Industrial Engineering and Industrial Management

2. Balanced Scorecard (BSC)
Developed by Robert Kaplan and David Norton in the early 1990s
Definition: A tool that translates an organization’s mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system
Source: Kaplan, R. and Norton, D. The Balanced Scorecard. (1996) Boston: Harvard Business School Press.
Spring 2017
ISE 468 ETM 568 Dr. Burtner ~ Balanced Scorecard

3. Balanced Scorecard Benefits
Concept: An organization’s strategies and their execution are important factors in performance improvement
Potential benefits
Increased financial returns
A more market-oriented, customer-focused strategy
Greater alignment between employees and company goals
Improved collaboration
Strong focus on strategy
Accountability for performance at all levels of the organization
Spring 2017
ISE 468 ETM 568 Dr. Burtner ~ Balanced Scorecard

4. Links Strategy and Performance in 4 Areas
Learning and Growth Perspective
Internal Process Perspective
Customer Perspective
Financial Perspective
Spring 2017
ISE 468 ETM 568 Dr. Burtner ~ Balanced Scorecard

5. Basic Graphic of Original Concept
Source:
Accessed Feb. 28, 2013
Spring 2017
ISE 468 ETM 568 Dr. Burtner ~ Balanced Scorecard

6. Typical Graphic of Concept
Source:
Accessed Feb. 25, 2014
Spring 2017
ISE 468 ETM 568 Dr. Burtner ~ Balanced Scorecard

7. Typical BSC Measures in Healthcare
Source: Accessed Oct. 18, 2009
Spring 2017
ISE 468 ETM 568 Dr. Burtner ~ Balanced Scorecard

8. Value Stream Management for Lean Healthcare
Original areas
Learning and Growth Perspective
Internal Process Perspective
Customer Perspective
Financial Perspective
Oakview Hospital (Tapping, et al)
Learning and Growth Perspective = Satisfaction
Internal Process Perspective = Service
Customer Perspective = Quality
Financial Perspective = Finance
Spring 2017
ISE 468 ETM 568 Dr. Burtner ~ Balanced Scorecard

9. Implementation of the Balanced Scorecard
Value Stream Management for Lean Healthcare (2009) Authors: Don Tapping, Sue Kozlowski (CSSBB), Laura Archbold (RN, BSN,MBA), and Todd Sperl (MBB)
Seven step implementation process
Identify team
Understand organizational strategy
Determine levels for measurement
Identify goals (targets) for each measure
Create Balanced Scorecard
Build Goal Card
Monitor the Balanced Scorecard
Spring 2017
ISE 468 ETM 568 Dr. Burtner ~ Balanced Scorecard

10. Value Stream Management (VSM) Perspective
“The Balanced Scorecard is the starting point for Value Stream Management for the Assess phase. It is an evaluation of the current “state of facility health” and will be the driver for all Lean projects.” page 74
Value Stream Management for Lean Healthcare (2009) Authors: Don Tapping, Sue Kozlowski, Laura Archbold, and Todd Sperl
Spring 2017
ISE 468 ETM 568 Dr. Burtner ~ Balanced Scorecard