BSC Implementation and the Internal Business Process Perspective Capstone Project

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Balanced Scorecard

The internal business processes perspective of the balanced scorecard highlights metrics that allow managers to understand how well their business is running. These processes should be tied closely to enhancing financial objectives, and should reflect a high level of congruence with the customer and learning & growth perspectives as well (BSI, 2013).

The organization's mission and vision should be the basis for this analysis. At Cattaraugus Rehabilitation Center the focus is on improving patient outcomes and containing costs, so the metrics used in the internal processes perspective should reflect this. The first metric is to improve patient success rates. This has to be defined, but for each rehabilitation case there are specific objectives that are set within the industry based on medical science and industry knowledge. There is some leeway for medical staff to change the measures of success where unique circumstances arise. Thus, the first objective is going to be to get the patient success rate to 99% from its current rate of 98%. This represents an improvement in patient outcomes. This measure is the output of a lot of hard work, in particular with respect to the training of staff in critical areas. So now that there is a metric and a target, there needs to be one new action.

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However, each rehabilitation is different, but there will be investments in new technologies that will improve the diagnostic process as well as the processes in the rehabilitation. Computer-assisted diagnostic modelling investments will help improve patient outcomes, especially when combined with improved training on such techniques.

A second metric is going to be to improve administrative efficiency. This will be measured by administrative expense as a percentage of revenue. Even though Cattaraugus is a not-for-profit clinic, it needs to maintain a healthy financial situation. The measure of using a percentage is based on the financial accounting technique of vertical analysis wherein the line items are weighted against revenues. One of the key drivers of costs at the administrative level is the need for overtime, so the best way to address this objective with action is to find ways to reduce overtime. This will require investments in new software, in order to streamline the processes by which the company does its document-processing. There is still a lot of work that it done with paper records rather than electronic records at Cattaraugus, so there getting more information into electronic….....

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