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¶ … Balanced Scorecard Approach by Cattaraugus County ReHabilitation Center
Unlike many so-called "management fads" that emerged over the past 20 years, the balanced scorecard approach has been shown time and again as an effective way for companies of all sizes and types of better manage their resources in ways that provide them with a competitive advantage. This paper provides a review of the relevant literature to demonstrate that Cattaraugus County Rehabilitation Center did an effective job of implementing a Balanced Scorecard approach in a fashion that reflects their organizational mission and vision. A summary of the research and important findings concerning the Center's implementation of a balanced scorecard approach are presented in the conclusion. Financial -- the strategy for growth, comparability, and risk viewed from the perspective of the shareholder;
Review and Discussion
Balanced Scorecard Overview
The Balanced Scorecard approach was developed and refined during the 1990s by Kaplan and Norton with the goal of identifying those factors that are most responsible for driving organizational performance (Martello, 2008). In sum, the Balanced Scorecard measurement system relies on conventional financial performance metrics as well as the other factors responsible for organizational performance (Martello, 2008). According to Martello (2008), "The Balanced Scorecard is based upon the cause-and-effect relationships of the financial and non-financial measures derived from the organization's strategy" (p. 68). The Balanced Scorecard approach has been successfully implemented and administered in numerous nonprofit and for-profit organizations, including healthcare facilities (Qudrat-Ullah, Chow & Goh, 2007).
2. Customer -- the strategy for creating value and differentiation from the perspective of the customer;
3. Internal Business Processes -- the strategic priorities for various business processes that create customer and shareholder satisfaction; and,
4. Learning and Growth -- the priorities to create a climate that supports organizational change, innovation, and growth (Martello, 2008, p. 68).
The Balanced Scorecard's four perspectives are then used to define a corporate strategy's cause -- and effect relationship (Martello, 2008).
The ReHabilitation Center Overview
Founded during the mid-20th century by a consortium of parents of children with disabilities, the ReHabilitation Center has become a multi-disciplinary organization that provides services to hundreds of clients with three dozen clinics in Cattaraugus County and nearby New York State counties (Martello, 2008). According to Martello, "The ReHabilitation Center is dedicated to improving the quality of life of people with disabilities. It provides comprehensive services to assist each individual in achieving maximum independence" (2008, p. 70).
Evaluation of the ReHabilitation Center's Implementation of the Balanced Scorecard
It is possible to successfully implement the Balanced…
References
Mackay, A. (2004, October). A practitioners' report based on: Shareholder and stakeholder approaches to strategic performance measurement using the Balanced Scorecard. CIMA
Research Report.
Martello, M., Watson, J.G., & Fischer, M.J. (2008, September). Implementing a Balanced
Scorecard in a not-for-profit organization. Journal of Business & Economics Research,
Balanced Scorecard What was the situation for Saatchi & Saatchi in the mid 1990s? The management team adopted an approach that was primarily two-pronged: the financial perspective and the customer perspective. In terms of the financial perspective, what goals did the new leadership set for the company? Saatchi & Saatchi had lost critical amounts of market share, because the company had overleveraged itself through numerous acquisitions. The goals that the new leadership
Balanced Scorecard Evaluation The Voice of the Employee focused on safety and poor employee relations. This falls under the Learning and Growth category of the balanced scorecard. It evaluates the correct level of expertise with each employee, employee turnover, job satisfaction, and training (McCarthy, 2008). The balanced scorecard measures the top down strategy of the company's mission statement and strategy (Kaplan, 2007). From the mission and strategy of USPS, the employees
Chang and Young (1995) points that the process of measuring performance give an organization an opportunity to have focus, projections, common understanding as well as quality knowledge to enhance good decision making process in any organization. It also helps organizations to have a mechanism of getting feedback on the improved efforts of service delivery. In addition to this due to the fact that measurement of performance is closely related to
BALANCED SCORED CARD & THE FINANCIAL PERSPECTIVE The Balanced Scorecard & the Financial Perspective CCRC (Cattaraugus County Rehabilitation Center) is a non-profit organization that focuses on the rehabilitation of disabled people in order to improve their quality of life. The organization also delivers the comprehensive services for disabled people to achieve maximum independence. Similar to the for-profit organizations that used balanced scored to maximize their revenues, the Center also attempted to use
Roland Beer Company Score Card Performances Customer Value Perspective Process or Internal Operations Perspective Learning and Growth Perspective Creation of customer creation turnovers for assessment Creating avenues where customers are able to meet their places of need Assessment and increment of the customer values Measuring performance processes Improving on productivity of clients Performance of assessments on metric operations Satisfying various needs of employees Retaining large numbers of employees for increased performance Maximizing organization in order to foster increased performance Creation of an organizational culture
high-quality healthcare services to families with children suffering from a broad range of developmental disabilities is a challenging enterprise in any setting, but the constraints to productivity faced by Cattaraugus County ReHabilitation Center were daunting indeed. The Center had grown to include a number of organizations that provide specialized care to disabled children, but it had outgrown its old business model when a Balanced Scorecard initiative was implemented. This