BALANCED SCORECARD EXAMPLE The following is an example of how one might develop a Balanced Scorecard. The information included is fictional and is provided to simply demonstrate the process. Anytown Hospital has just finished a two-day retreat where they revised and updated their mission and vision statements and drafted a strategic plan. The hospital’s vision statement is:

The vision of Anytown Hospital is to be the community’s provider of choice.

The hospital’s mission statement is: Anytown Hospital is committed to providing the highest quality of health care through service excellence and compassionate care During their retreat, the hospital board and leadership identified the following strategies to pursue the upcoming year. • • • • Operate in the black with 5% margin by increasing revenues Motivate, recognize and retain staff Provide high quality services Increase utilization of services

The Anytown Hospital administrator enlisted the help of the department managers to implement a performance improvement process and Balanced Scorecard. First, they took these strategies and placed them into their appropriate perspectives as follows: Learning and Growth Perspective (Staff & Clinicians) • Motivate, recognize and retain staff • Internal Process Perspective (Quality & Safety) Provide high quality services

Customer Perspective (Patients & Community) • Increase utilization of services

Financial Perspectives (Business & Development) • Operate in the black with 5% margin by increasing revenues

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NOTE: Once strategies are categorized according to the four perspectives, if there are imbalances, determine if they are significant and either add or remove strategies accordingly. The next step is to determine the causal linkages between the strategies and develop a strategy map to visually portray how your strategies support your mission and vision. One