1. Evaluate the strengths and weaknesses of the balanced scorecard in this type of an organization. Brief summary of Montefiore Medical Center:
* MMC started off in 1884 as a home for the chronically ill that other hospitals couldn’t help, dedicated in honor of Sir Moses Montefiore. * In 1963, Montefiore agreed to operate the patient care facility of the Hospital of the Albert Einstein College of Medicine. Both hospitals remained as distinct entities with separate administrations for the next 13 years. * By 1986, Montefiore was under severe management and financial problems and a new president was board selected – Dr Spencer foreman, who created a new leadership team, organized Montefiore into 2 sectors – operations & corporate services, and changed Montefiore’s mission from teaching, research and patient care to patient care, teaching, community service and research in that order. * By 1995, MMC (which had 2 acute care hospitals, 31 community based primary care centers, a home care agency and an annual operating budget of $1 billion, 24 academic chairpersons, 800 full time medical center faculty and 750 residents), once again was in a financial problems that were creating a crisis situation and Dr. Foreman promoted Elaine Brennan (RN. MPH) to senior VP of operations at the acute care division of MMC. * Ms. Brennan standardized functions, eliminated 150 management positions, formed a strategic management team developed from all levels of MMC management, introduced the GRIP set of strategic imperatives, reorganized and decentralized the acute care center into 5 clinical care centers and 3 support centers. She last but not the least, introduced the Balanced Scorecard. Brief summary of a Balanced scorecard
* According to R.W.Hilton of Managerial Accounting: Creating Value In A Dynamic Business Environment, a Balanced Scorecard is a model of business performance evaluation that balances measures of financial performance, internal...
References: * HBS’s Montefiore Medical Center, by Robert S. Kaplan; Noorein Inamdar
* Chapter 1: pg. 9-11 and Chapter 10: pg. 427-433 of Managerial Accounting: Creating Value In A Dynamic Business Environment, by Ronald W. Hilton
* Balanced Scorecard - Advantages and Disadvantages, available at http://tamarawilhite.hubpages.com/hub/Balanced-Scorecard-Pros-and-Cons. Accessed on 10/21/2012.
* Benefits from using the Balanced Scorecard, available at http://thebalancedscorecard.com/benefits_bsc.htm. Accessed on 10/21/2012
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