BALANCED SCORECARD REPORT TO CEOsBackground, method and objectives The (MBNQA) Malcolm Baldrige National Quality Award offers a criteria package for organizational quality improvement and assessment, which has been utilized by thousands of educational, healthcare and business organizations over a long time. This report offers insights to a group of Chief Executive Officers (CEOs) heading different healthcare organizations who are responsible for directing administrative and clinical operations, budget control and resource allocation on how balanced scorecard, especially the MBNQA could benefit various organizations and sectors. The report focuses on establishing an objective framework for assessing how the CEOs can optimize their organizational efficiency and enhance customer/patient relations through integrating a balanced scorecard in their management process.
1.1 Introduction of Balanced Scorecard How can an organization become successful? Organization which have an outlined strategic and a core business plan to fulfill the objectives of their customers are inclined to be the industry leaders. The solution to organization growth and success lies in its ability to decode the organizational strategy to operational processes and its capability to evaluate achievement and performance of its strategic goals.
According to Senge (2009) leaders and managers in an organization provide bridges between communicating organization’s strategic mission and objectives to the employees. Workers of an organization are on the vanguard of the company representing the organization’s values to customers, hence are in a vital spot to make negative or positive impacts on the satisfaction and perceptions of the customers. For organization to be successful is must have the ability to communicate its organizational strategy through their workers so as to achieve customer satisfaction and objectives. The BSC (Balanced Scorecard) represents a system for organizational strategy communication and outlining phases of success based on TQM (Total Quality Management) values proposed by Edward Deming.
Both TQM and BSC define initiatives to enhance outcomes, processes and quality. However, the Balance Scorecard improves the effectiveness of the Total Quality Management fundamentals by outlining tangible conduits and defining internal process vital for strategic success. In addition, BSC does not simply underline that to remain competitive; an organization has to focus on customer satisfaction and quality (Kaplan & Norton, 2001). Upon the establishment of the strategic pathway, leaders and managers then have to apply performance evaluation techniques to assess whether the organization is achieving its strategic objective and meeting the objectives of the customers as outlined in the Balanced Scorecard.
A key measurement technique that can be applied to assess achievement levels of the outlined target is usually the feedback survey. Edwards Deming, determined the mother of TQM, restored the industrial base of Japan following the World War II by concentrating on transforming the traditional management paradigms (Walton, 2006). As opposed to focusing on the mass quantity, the attention changed to generating quality services and products, and by adopting statistical system controls to get rid of waste.
A part from enhancing production quality and efficiency, Deming also promoted the engagement of employees in the process of decision making, the eradication of defects and discovery of weak points.