Building and Implementing a Balanced Scorecard at MidValley Hospital

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Building and Implementinga Balanced Scorecard
at Mid-Valley Hospital
Rural Performance Management, LLC a Stroudwater
Associates company 443 Congress Street Portland,
Maine 04101 [phone] ext. 227 (800)
947-5712 Toll Free

• A Tool for Continuous Improvement

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Improvement Doesnt Just Happen
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Execution of Strategy The Corporate Challenge
of Our Times!

• Strategy has never been more important
• Business Week
• Less than 10 of strategies effectively
  formulated are effectively executed
• Fortune Magazine
• In reality, strategy is less than half the
  battle. .. In the majority of cases we estimate
  70 the real problem isnt bad strategy.
  Its bad execution.
• Why CEOs Fail, Ram Charan and Geoffrey Colvin
  Fortune (6/21/99)

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9 of 10 Companies Fail to Execute Strategy
Four Barriers toStrategy Execution
Kaplan and Nortons The Strategy Focused
Organization
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Bridging the Gap Between Strategy Action
STRATEGY Our game plan
STRATEGIC INITIATIVES What we need to do
PERSONAL OBJECTIVES What I need to do
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The Balanced Scorecard is a way to collect data
and information that helps organizations move
from strategies to action that improves
performance.
Adapted from Kaplan and Nortons The Strategy
Focused Organization
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Creating Long Term Value

• The Balanced Scorecard tracks performance of the
  factors that create long-term economic value in
  an organization
• Customer Focus satisfy, retain and acquire
  customers in targeted segments
• Clinical/Business Processes deliver the value
  proposition to targeted customers
• Organizational Learning Growth
• Financial Health and Accountability

Customers
Finances
Processes
People
.
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Its About Vision, Strategy Action

• Provides a visual framework for moving from
  vision to strategy to action
• Provides a communication tool about progress
  toward planned improvement
• Draws a cause and effect roadmap in a one-page
  strategy document
• Supports a systems approach to form an Integrated
  Management Process

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Focused Outcomes

• Helps employees focus, coordinate and collaborate
  on meeting organizational goals
• Speeds and informs decision-making about
  prioritization of work and resource allocation
• Improves management effectiveness by having a
  shared plan for continuous improvement
• Communicates clearly and visually the alignment
  needed to execute hospital strategy across the
  organization.

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Mapping Strategic Outcomes
Mission Vision Values
Financial Perspective

• Profitability
• Growth
• Operational Efficiency

What financial resources are required to fulfill
our mission?
Customer Perspective

• Confidence
• Service
• Quality

What do customers want, need, or expect?
Measurement is the language that gives clarity to
vague concepts
Internal Perspective

• Patient Safety
• Operational Improvement
• MD Needs

To satisfy our customers, at which clinical/
business processes must we excel?
Measurement communicates, it does not control
Learning and Growth

• New Skills
• Strategic Awareness
• Technology

What resources skills, training, and support do
staff have in order to work effectively?
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Strategy Map Example
Long-Term Sustainability
Through long term sustainability (including
financial), we will seek to improve the health
opportunities for county residents.
Improve the health opportunities for County
residents
In order to achieve long term sustainability, we
will meet patient and community needs by
providing the best rural health care services in
a modern setting.
Patients and Community
Strive to provide the best rural healthcare
services in a modern setting
Clinical and Business Processes
In order to provide the best services, we will
develop business growth opportunities and provide
the highest quality clinical and operation
services.
Develop growth opportunities internally and
externally
Improve the quality and safety of Patient Care
In order to support our processes for growing
services and providing high quality care, we will
be the employer of choice for a highly productive
and motivated workforce.
Staff and Infrastructure
Be the employer of choice by recruiting,
developing, and retaining a highly productive and
motivated workforce
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Shift Focus to Strategy
PRESENT (Event-Driven Learning)
Review StrategicIssues (30)
Review StrategicIssues (60)

• Provide input to strategic issues currentlybeing
  worked

DiscussImplications (30)
Review PastPerformance (40)
THE QUARTERLY REVIEW MEETING
The Balanced Scorecard Collaborative
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The Right Thing at the Right Time
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Results Are What Count!
The Balanced Scorecard is quick, efficient,
proactive and provides a common language for
organizational improvement.
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Rural Performance Management, LLC a Stroudwater
Associates company 443 Congress Street Portland,
Maine 04101 [phone] ext. 227 (800)
947-5712 Toll Free