Internal Business Process Prospective
BUS 499 – Strategic Management
Module 3 Case
February 1, 2013
Duke Children’s Hospital fell into a crisis within the mid-1990s. Expenses were rising while dramatic reductions in net margin were occurring. Staff productivity fell and staff satisfaction was at an all-time low. They overcame the crisis by implementing the balanced scorecard. Their way of designing their scorecard catered to their business in healthcare. The higher officials of Duke Children’s Hospital made a three-step process in designing their balanced scorecard. “The three steps of proven rapid-fire approach are to: get connected, get results, and get smarter” (Meliones, 2001). Step one consisted of establishing key linkages. By linking the mission, strategy, objectives, targets, key performance indicators, and initiatives across the organization, stakeholders within the hospital were able to stay on the same end goals. Each stakeholder was given information to diagnose opportunities for improvement. There were three vital areas that helped the scorecard stay connected. Key performance indicators linked the business and clinical aspects of healthcare. Staff satisfaction was related to preserving or increasing quality of care. Regulatory area maintained the compliance of laws and procedures within the organization. Step two consisted of analyzing performance to get results. Data was collected to enhance the productivity and satisfaction of stakeholders within the hospital. The goal was to “improve performance in stakeholders while enhancing quality” (Meliones, 2001). This affects the customer perspective by increasing customer satisfaction. The key factor to help analyze data and improve efficiency was to implement new technology. By supplementing telephone calls with fax and email and setting up automated notifications, the “total denials decreased from fifteen percent to less than one percent” (Meliones, 2001). Step three consisted...
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