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

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 of the primary reasons for developing a strategy map is that it should clearly communicate the connection between strategies and mission and is an excellent communication tool. The following is Anytown Hospital’s strategy map.

MISSION: Anytown Hospital is committed to providing the highest quality of health care through service excellence and compassionate care

Financial Perspectives (Business & Development)

Operate in the black with 5% margin by increasing revenues

RESULTS IN

Customer Perspective (Patients & Community)

Increase utilization of services

RESULTS IN

Internal Process Perspective (Quality & Safety)

Provide high quality services

RESULTS IN

Learning and Growth Perspective (Staff & Clinicians)

Motivate, recognize and retain staff

FEB	MAR

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