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Characteristics of a good balanced scorecard
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Principles of effective performance management
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This part of the assignment will discuss balanced scorecard that has been implemented by UK National Health Service (NHS), how it has influenced and impacted upon the performance measures of this organisation.
‘Since its launch in 1948, the NHS has grown to become the world’s largest publicly funded health service. NHS employs more than 1.7m people and deals on average with 1m patients every 36 hours. It is also one of the most efficient, most egalitarian and most comprehensive. Even though NHS services in England, Wales, Scotland and Northern Ireland are managed separately and each might have some system differences, they remain similar in most respects and belong to a single, unified system. The NHS core principle is that good healthcare should be available to all, regardless of wealth.’ (NHS, 2010) Success of NHS depends on how well the organisation balance quality and customer (patient) satisfaction with adequate financing and long-range goals. Health care organisations such as NHS must deal with government oversight, managed care, new technologies, and increasing pharmaceutical prices.
The NHS has adopted a performance measurement system that is based on the concept of balanced scorecard in order to obtain a broader view of performance within the organisation (Department of Health, 2001). Although, measuring performance evaluation of health care system could be difficult, it can on the other hand serve several purposes and can help facilitate change and improvements in the effectiveness and quality of health care. It seems peculiar to focus on performance measures in organisation such as NHS, but even NHS is facing increasing competitive pressures when considering ageing populations increasing demand, improved treatment...
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...t in public/patient accountability, service efficiency and staff involvement to a highly prominent level.
Government has developed ‘Star Ratings’ system which monitors improvements in accountability measures. The experience of the ‘Star Ratings’ system in respect of service efficiency indicates that it is prudent to act pro-actively rather than re-actively. It is vital to consider that the Government is expecting demonstrable improvements in health services rather than rhetoric alone (Radnor and Lovell, 2003).
‘Though it is intricate to demonstrably prove in quantitative terms that the balanced scorecard can deliver efficiency improvements at the start of its implementation, it can be shown in quantitative terms that a well designed fully cascaded balanced scorecard system should address the needs of a health care system. ’ (Radnor and Lovell, 2003, p. 105)
Nerenz, D. R. & Neil, N. (2001). Performance measures for health care systems. Commissioned paper for the center for Health management research. [PDF document]. Retrieved from Systemswww.hret.org/chmr/resources/cp19b.pdf
With the goals of 2010 in mind, it is important for the AHA to be able to measure the actions of their employees and ensure the alignment of their behaviors with the strategic goals of the association. The Balance Score Card developed below serves as universal tool to do just that, but also sends a message to leaders and employees across the association that this is the new strategic direction the association will be moving, and this is it will be mapped and measured to ensure we reach our goals for 2010.
The original ethos behind the NHS was the belief that, through the provision of universal and complete health care, free at the point of provision, the NHS would eliminate significant disease and thereby work itself out of a job. Clearly a naive view by today's standards, this ethic remains one of the problems of the NHS today: the electorate still believes that there is intrinsic value in a universal and complete NHS, although no-one can agree on exactly what constitutes 'complete' health care, and none can say what the actual benefit of attempting to provide this (rather than rationed care)...
Papanicolas, I. & Smith, P. (2013). Health system performance comparison an agenda for policy, information and research. Maidenhead: Open University Press.
The history of the NHS from being chaotic to having an organised st ructure. The structure of the NHS is divided into local authority and social service, hospital services and general practitioners including specialist care. When the NHS was developed, there was no prediction of how much all the services would cost to run. The government introduced the first service charges for dentures in 1951and prescription and spectacle’s in 1952 this could have been due to everyone needing medical care at the same time. This also suggests that individuals health improved, likely to live longer and would need more services in the future which the government realised would be unrealistic to achieve. Even then, as it is currently, it remains difficult
The purpose of this essay is to introduce the history of the National Health Service (NHS) and how its formation derived from the early 1600s. It will analyse two current political issues that occur within the NHS, the postcode lottery and the reformation of the NHS, examining the positive and negative effects they have had. It will also discuss implications of regulations within professional practice and how they account for quality of care.
Balanced Scorecard The balanced scorecard (BSC) is a strategy used in organizations to determine their performance measures (Meredith & Shafer, 2016). The BSC provides knowledge into four perspectives of an organization; financial performance, customer performance, internal business process performance, and organizational learning and growth (Meredith & Shafer, 2016). There are many elements of the BSC, including the strategy map which displays the cause and effect relationships between the four perspectives to achieve a specific organizational goal (Meredith & Shafer, 2016).
The overall goal of performance management is to ensure that an organization and its subsystems (processes, departments, teams, etc.), are optimally working together to achieve the results desired by the organization. Performance management has a wide variety of applications including measuring the leader performance, such as, staff performance, business performance, or in health care, health outcome performance measures. To manage and measure performance of leaders are directed to the organizational strategic goals and mission. The primary reason to measure and manage performance of leaders is to drive quality improvement. The Clinical performance of a leader are derived from evidence-based clinical guidelines and measurement allows an evaluation of an important outcome of care for patients, and it is a proxy to understand the effectiveness of the underlying systems of care. Just as there are evidence-based care guidelines for many conditions, there also are established measures that indicate how leaders has effectively guidelines and has translated to
In the mid 1980s, and into the 1990s, business leaders realized that a renewed focus on quality was required to continue to compete in an expanding global market. (NIST, 2010) Consequently, several strategic frameworks were developed for managing, and measuring organizational performance. Among them were the Malcomb Baldrige National Quality Award, which was created by and act of congress and signed into law by the President in 1987, and The Balanced Scorecard, which is a performance management tool that was born out of research conducted in the late 1980s and early 1990s by Robert S. Kaplan, and David P. Norton published in 1996 (Kaplan, 1996). Initially the renewed emphasis on quality management systems was a reaction to the LEAN approach
A Balanced Scorecard can be defined as a “performance management tool which began as a concept for measuring whether the smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and strategy” (Wikipedia 2009, ¶ 1). Scents & Things will need to develop a balanced scorecard that will assist in meeting and help define the company’s values, mission, vision, and SWOT analysis. The balance scorecard is made up of four perspectives; financial, customer, learning and growing, and internal process. This paper will define each of the four perspectives objectives, performance measures, targets, and initiatives. The paper will also show how the perspectives relate to Scents & Things vision, mission, values, and SWOTT analysis.
At its most fundamental core, quality improvement of healthcare services and resources requires disciplined attention to the measurement, monitoring, and reporting of system performance (Drake, Harris, Watson, & Pohlner, 2011; Jones, 2010; Kennedy, Caselli, & Berry, 2011). Research points to performance measurement as a significant factor in enabling strategic planning processes and achievement of performance goals (Tapinos, Dyson & Meadows, 2005). Thus, without a system of measurement that accounts for the performance behaviors of healthcare professionals, managers and administrative employees, quality improvement remains a visionary abstraction (de Waal, 2004).
Understanding quality measurement is essential in improving quality. Teams need to be able to understand whether the changes being made are actually leading to improved care and improved outcomes. For data to have an impact on an improvement initiative, providers and staff must understand it, trust it, and use it. Health care organization must understand the measurement of quality provided by the Institute of Medicine (patient outcomes, patient satisfaction, compliance, efficiency, safe, timely, patient centered, and equitable. An organization cannot improve its performance if it does not know how it is performing. Measuring quality improvements is essential as it reflects the quality of care given by the providers and that by comparing performance
The Balanced Scorecard has emerged in recent years as a performance measurement system in various organizations. This paper will discuss the origin and concept of the balanced scorecard and how it was first implemented. We will then review the criticisms on the balanced scorecard methodology as well as analyse the strengths and weaknesses of this performance measurement tool.
- Organisation and Management of Health Care, April 2002, Version 2.0 , Main Contributor: Katie Enock, Public Health Specialist, Harrow Primary Care Trust www.healthknowledge.org.uk
Performance management is a useful and powerful tool that can be used by managers to identify what areas of their organisation they need to improve to increase the organisation’s overall performance. The idea of a balanced scorecard enforces a sensible distribution of resources and effort across all aspect of performance an organisation is, or should be, concerned with.