Module 3 - Background
The Internal Business Process Perspective
Remember the earlier instructions about how to find article linked to Proquest (see Module 1 Background Readings)
Required Readings
CQI (2008) Introduction to Quality.The Chartered Quality Institute. Retrieved May 17, 2010, from http://www.thecqi.org/resources/d2-1.shtml
Meliones, Jon N.; Ballard, Richard; Liekweg, Richard; & Burton, William (2001, April). No mission (<-->) no margin: It's that simple. Journal of Health Care. 27(3): 21-30. Retrieved May 17, 2010, from http://proquest.umi.com/pqdweb?vinst=PROD&fmt=6&startpage=-1&clientid=29440&vname=PQD&RQT=309&did=69282123&scaling=FULL&vtype=PQD&rqt=309&TS=1226871645&clientId=29440
Niven, P. (N.D.) Internal Process perspective.EPM Review. Retrieved May 17, 2010, from http://www.epmreview.com/Resources/Articles/InternalProcess-Perspective.html
Optional Readings
McLean, SR. and Mahaffey, SM. (2000).Implementing a surgical balanced scorecard.Surgical Services Management.6(1). 43-47. Retrieved May 17, 2010, from http://proquest.umi.com/pqdweb?sid=1&vinst=PROD&fmt=6&startpage=-1&clientid=29440&vname=PQD&RQT=309&did=61696818&scaling=FULL&vtype=PQD&rqt=309&TS=1226873431&clientId=29440
The Chartered Quality Institute. Retrieved May 17, 2010, from http://www.thecqi.org//Knowledge-Hub/Qualityworld/
Sharma, MK and Bhagwat, R (2007).An integrated BSC-AHP approach for supply chain management evaluation.Measuring Business Excellence.11(3) 57ff. Retrieved May 17, 2010, from http://proquest.umi.com/pqdweb?vinst=PROD&fmt=6&startpage=-1&clientid=29440&vname=PQD&RQT=309&did=1323780681&scaling=FULL&vtype=PQD&rqt=309&TS=1226873032&clientId=29440
Sharma, P. (N.D.) BSC – Internal business process perspective Retrieved May 17, 2010, from http://www.scribd.com/doc/5032773/Balanced-Scorecardinternal-process-perspective
Optional Supplemental Materials
Click here for optional supplemental enrichment materials.
BUS499 - BSBA Integrative Project
Module 3 - Case
The Internal Business Process Perspective
The internal business process perspective of the balanced scorecard turns attention to the aspects of the organization’s operations that are within the possibility of direct control by its managers and employees. Here is a useful brief summary of the approach:
Niven, P. (N.D.) Internal Process perspective.EPM Review. Retrieved May 17, 2010, from http://www.epmreview.com/Resources/Articles/InternalProcess-Perspective.html
Analysis of business processes is closely bound up with the assessment of quality; in fact, most of the literature in this area is dominated by the vocabulary of the quality analysts. The Chartered Quality Institute offers a good overview of product and service quality concerns, and how they affect customer loyalty and satisfaction (note the intersection of the Business Process and Customer Perspectives!). Here is a useful summary of this approach that meshes nicely with the internal business process perspective; although it does not explicitly mention the balanced scorecard, you should have no trouble applying its recommendations to your case analysis here:
CQI (2008) Introduction to Quality.The Chartered Quality Institute. Retrieved May 17, 2010, from http://www.thecqi.org/resources/d2-1.shtml
Our example in this case is Duke Childrens’ Hospital in Raleigh-Durham NC. Here’s how this process has been described:
The authors describe their experience in developing a strategy-focused organization using the balanced scorecard methodology. They achieved this at Duke Children's Hospital by aligning the clinicians and administrators around a single integrated platform that linked improving business processes with achieving quality clinical outcomes. By organizing in this manner, they reduced cost by $30 million and increased net margin by $15 million while improving outcomes and staff satisfaction. This article describes a methodology to achieve strategic control of the organization, increase the knowledge of key stakeholders, and transform the organization to optimize the organization's performance.
The article from which this summary is taken can be found here:
Meliones, Jon N.; Ballard, Richard; Liekweg, Richard; & Burton, William (2001, April). No mission (<-->) no margin: It's that simple. Journal of Health Care. 27(3): 21-30. Retrieved May 17, 2010, from http://proquest.umi.com/pqdweb?vinst=PROD&fmt=6&startpage=-1&clientid=29440&vname=PQD&RQT=309&did=69282123&scaling=FULL&vtype=PQD&rqt=309&TS=1226871645&clientId=29440
As your case assignment for this module, you are to carefully review this article, and then (in 3-4 pages) prepare your analysis of how Duke Children’s Hospital implemented the balanced scorecard and its apparent effects.
Assignment Expectations:
Your analysis should be structured along the lines you’ve been using this far in these cases:
Introduction: What process did Duke Children's Hospital follow in creating a balanced scorecard? Why did the hospital decide to use the balanced scorecard to evaluate its stakeholder relationships and its business processes? What was the reaction of the staff?
Analysis: In the balanced scorecard Duke University Children's Hospital developed, on what internal business process did the hospital focus? What measures were used? What changes were made in that business process?
Conclusion: Describe how the changes in its business processes affected both employees and customers (patients); this involves considering multiple perspectives, both those of participants and those of stakeholders.
Evaluation: Did Duke Children's Hospital do a good job in designing and using its balanced scorecard? Agree or disagree with the issue, then defend your position. Use your readings to help you decide whether the implementation was done well or poorly.
BUS499 - BSBA Integrative Project
Module 3 - SLP
The Internal Business Process Perspective
For Module 3, consider the organization's mission and strategy from the perspective of its internal business processes (from your work on the case, your previous course work, and your background reading, you should be reasonably clear what such business processes are). In this section of the assignment you’ll begin to identify objectives and measures relevant to that perspective. Refer back to this presentation on objectives if you need to.
Assignment Expectations:
Once you’re reasonably clear on what’s involved, think about your organization and its business processes, and then:
Identify at least three objectives for improving the organization's internal business processes, and show how they relate to the mission, vision and strategy of the organization.
• For each objective, develop at least one meaningful performance measure (metric).
• For each objective, identify at least one expected level of performance (target).
• For each objective, identify at least one new action or program that needs to be developed to ensure successful implementation of the organization's strategy (initiative).
• Comment briefly on the relationships of the process objectives that you've identified here to the finance objectives that you identified in the Module 1 SLP assignment and/or the customer service objectives that you identified in the Module 2 SLP assignment. How do they help to fulfill those objectives? If they don't (and they don't have to), what makes them more important than objectives that would relate to finance or customer service?
• Finally, do you wish to make any changes to your Module 1 or Module 2 objective write-ups in light of your Module 3 experience?
Here’s a table that you may wish to copy and fill in (the boxes are expandable - take all the space you need to be complete in your descriptions. No more than 2-3 pages should be necessary.)
Objective Measure Target Action
Relationships to other objectives
Revisions (if any) to Module 1 and/or Module 2 Objectives
Objective/Module Measure Target Action
When your assignment is ready, send it in to Course Net