BALANCE SCORE CARD

Balance Score Card

Introduction

Balance score card is amongst the finest tools used by companies all around the world in order to measure and determine the performance of the company as well as its employees. This is a concept which is used by many top most organizations from all over the world. There are multiple benefits of designing and developing a balance score card. The essence of using a balance score card lies in the strategic decisions which are backed on the basis of balance score card analysis. Balance scorecard provides voice and strength to intangible assets of the organization (Niven P. R., 2011, pp. 8).

In 1996, the hospital started to face serious issues as its profitability was reduced by a great amount. In order to bring the hospital back to the green, they used a balanced score card approach in order to measure the company's performance and take corrective action. It was determined that in order to reduce costs, there was a need for a link between the staff so that the efficiency and effective of their treatment process could be increases. Since it was a big hospital, there were lots of coordination issues. In order to solve this, they implemented the system whereby every employee was linked in order to reduce the expenditures. They knew that in order to move forward, they had to take all stakeholders and move in one direction.

During this change, some employees were not considered since they didn't feel it was necessary. Although they wanted to increase the satisfaction of their employees, this move led to dissatisfaction among those who were left out.

Analysis

Duke hospital used the training and growth model in order to increase the productivity of its staff. They realized that in order to move forward they had to take all stakeholders and move forward in one direction. Only if this was done could they progress in their field. Their primary target was to decrease their costs since they were facing a situation where one year's loss could signal that future losses are expected. In order to avoid such a situation, they had to make some changes in their strategy (Norton & Kaplan, 2000).

Their strategy was to link the financial administration, nurses, and physicians in order to provide the best services. They decided that they had to increase the quality of their service in order to attract more patients, with the increase ...