Essay Preview: Balanced Scorecard
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Balanced ScorecardsStudent’s NameName of the InstitutionBalanced Scorecards Today, most of the business models frequently fail to achieve a breakthrough in their performance despite a good strategic plan. It’s because of the ineffective management that fails to monitor the objectives and processes of the project. A successful business requires a perfect transformation of the comprehensive strategies into the desired performance. A Balanced scorecard grant a proper orientation to those transformations, focuses on the objectives while aligning activities with strategy, and consequently ensures proper execution of the project by maintaining a harmonious relationship between different elements of the mission. For a proper execution of a project, it is mandatory that the operation is examined from several perspectives simultaneously. This allows the organization to focus on its goals while creating a harmony between different parties directly involved with the project. A balanced scorecard permits the organization to link different elements for a balanced performance. These elements include the organization’s mission and vision, customer’s satisfaction, continuous internal improvement, stakeholder expectations, and quality of employees. Kaplan and Norton (1993) observe those elements from four different perspectives: finance, customers, internal processes and innovation, and learning and growth. A perfect and cooperative balance between these elements maximizes the performance of the organization and leads to a successful approach to the objectives.
The progressive approach to the balanced scorecard is also useful in healthcare organization during the management of a patient admitted in the emergency department. Huang et al. (2004) asserts that the application of balanced scorecard helped to enhance the performance of the emergency department significantly as well as increased staff job satisfaction, hospital profit and education hours. The use of balanced scorecard helps to manage hospital resources effectively while delivering care and driving patient flow, which leads to patient’s satisfaction and increases revenue. This will allow the stakeholders to evaluate the performance of the employee and reinforce the facilities of the department. It is equally important that the employees are kept motivated time and often to increase their skill and drive performance. A well-organized health care should have a perfect coordination in between the health care providers and the financial managers to deliver the quality of care and ensure patient’s as well as employee’s satisfaction. An approach to an analysis of the healthcare cost and probabilities of profit allows the executives to make decisions to access growing health care needs and draft an appropriate strategy to change the design of the service. Aidemark et al. (2010) imply that 65% of Swedish hospital use balanced scorecard, which was persuaded by the need of acquiring a clear strategic plan and creating goal congruence. Therefore, the formulation of a balanced scorecard is necessary to develop a communicating strategy that will assure effective execution, appropriate use of the available resource, and maintain accountability.