Understanding the Balanced Scorecard

Mario D. Wallace 2015

Todays Agenda
Break up into 2 Groups of 3; Designate one scribe per group
10 minutes - Align Departments Mission to Organizations
20 minutes - Complete two SWOT analysis (5 min per
quadrant)
15 minute break
10 minutes - Compare and discuss SWOTS analysis amongst
groups
10 minutes - Convert weaknesses and opportunities into
objectives
10 minutes - Populate objectives onto Strategy Map

Learning Goals
At the end of the workshop, you will be able
to:
Explain what is a Balanced Scorecard and its purpose
Discuss the concept of strategic alignment
Explain what is a Strategy Map and its purpose
Name and discriminate the four perspectives of a Strategy
Map
Demonstrate knowledge of the BSC by converting
opportunities and weaknesses into objectives

Demonstrate knowledge of the BSC by populating a

Strategy Map with objectives

Balanced Scorecard Story

What is the purpose of

the Balanced Scorecard?
A. To hold managers
accountable
B. To measure the progress
of goals that aligns the
strategic mission if the
institution
C. To establish a strategic
planning and
management system
D.All of the above

Ice Breaker 1

What is the BSC?

Thebalanced scorecardis a strategic planning
and management system that is used to align
business activities to the vision and strategy of
the organization, improve internal and external
communications, and monitor organization

Str
Ali ateg
gn
i
me c
nt

The Purpose of the BSC

Align Departments Mission to

Organizations Mission
Organizations Mission

Departments Mission

FedEx Corporationwill provide "To facilitate the growth and

high value-added logistics,
renewal of our client
transportation and related
organizations by providing
business services through
services that positively impact
focused operating companies.
organizational effectiveness and
Customer requirements will be
employee productivity,
met in the highest quality manner motivation, job satisfaction, and
appropriate to each market
personal fulfillment."
segment served. FedEx will strive
to develop mutually rewarding
relationships with its employees,
partners and suppliers. Safety will
be the first consideration in all
operations. Corporate activities
will be conducted to the highest
ethical and professional
standards.
Strategic

Strategic Alignment
Activity
Organizations Mission

Departments Mission

The mission of UAMS is to

improve the health care and wellbeing of Arkansans and of others
in the region, nation and the
world.

Strategic
Alignment

10 minutes- Align Departments Mission to

Conduct a SWOT Analysis

Mission: Our mission is to promote the overall organizational health
of UAMS to better serve our patients and families.

SWOT Analysis Activity

Sample healthcare
Strengths
a new and/or innovative service
capabilities or cost advantages
cultural connections
extraordinary reputation
other aspects that add value
special expertise and/or experience
superior location or geographic
advantage

Opportunitie
s
a market vacated by a competitor
availability of new technology
changes in population profile or
need
Competitor vulnerabilities
lack of dominant competition
new market segment that offer
improve profit
new vertical, horizontal, or niche
markets

20 minutes- complete

Weaknes
ses

absence of marketing plan

damaged reputation
gaps in capabilities or service
areas
lagging in technology
management or staff problems
own known vulnerability
poor location or geographic
barriers
Threat
undifferentiated service lines

s
competitor has an innovative
product or service
a new competitor(s) in your
home market
adverse changes in
reimbursement or regulations
changing insurance plans and/or
contracts for major area
employers
economic shifts
key staff
associates
SWOTloss
(5ofmin
perorquadrant)

Converting SWOT Analysis

Items to Objectives
Objectives are brief verb-noun statements that describe a specific
goal of your strategic plan. Make sure that they reflect your most
recent strategic plan and SWOT Analysis (a review of your current
Strengths, Weaknesses, Opportunities, and Threats).
SWOT Analysis
Item
Objective
Weaknesses

Staff Development
(baseline 38%)

Increase Talent
Management across
the Organization

Weaknesses

Evaluation skills
(baseline 65%)

Optimize Managers
knowledge of Staff
Evaluations

Opportunity

Strategic Planning
(baseline 15%)

Develop Middle
Managers strategic
planning skills

Activity for Converting

SWOT Analysis
Items to Objectives
SWOT Analysis

Item

Objective

Weaknesses
Weaknesses
Opportunity

10 minutes- Convert weaknesses and opportunities into

What is a Strategy Map?

A strategy map is a cause and effect diagram that is used to
document the primary strategic goals being pursued by an
organization.

The Purpose of a
Strategy Map
Bring visualization to
life in a business
context in a
generalized but highly
integrated manner.
Describe how
organizations create
value by building on
strategic themes

Provide a way to
describe and
communicate strategy
systematically
Describe how the
organization plans to
meet its strategic plan

Elements of a Strategy Map

Mission/Vision
Four Perspectives (Customer, Internal
Process, Learning & Growth, and Finance)
Objectives
Cause and Effect Linkage

Strategic Alignment
Activity

10 minutes - Populate objectives onto Strategy Map

What questions do
you have?