Understanding and Implementing CMZ BSC - 2014 Edition

Understanding and Implementing CMZ Balanced Scorecard

(CMZ BSC)

What is it?How to Implement?

(Formulating, monitoring, and reporting)

2014 Edition

Reynaldo O. Joson, MDOctober 9, 2009 (Creation Date)

Understanding and Implementing CMZ Balanced Scorecard

(CMZ BSC)

General Objective of Learning Material:

To orient and train staff on the CMZ Balanced Scorecard Program (with focus on what is the balanced scorecard and how to formulate, monitor, and report it.)

Understanding and Implementing CMZ BSCContents

• What is a balanced scorecard (BSC)? CMZ BSC?

• What is the template being used in CMZ BSC?

• Why is BSC called “balanced”?

• What are the guide questions to answer the 5 perspectives of BSC?

• What are the ultimate outcomes of the 5 perspectives of BSC?

• Major categories of CMZ BSC


• BSC framework being used in CMZ

• The different function level scorecards

• The contents of BSC

• Tabular presentations of BSC – Main BSC and Action Registers / Plans

• Operational definitions of terms used in BSC


• History of CMZ BSC

• Policies on CMZ BSC (2013 onwards)

• How to implement the BSC – for CMZ BSC

• How to implement the BSC – for Unit BSC

• How to implement the BSC – for Individual BSC

CMZ BSC

What is a balanced scorecard (BSC)?• A blueprint

– formulated by an organization to be used as a guide and reference for

• implementation of strategies and tactical objectives• monitoring • evaluation of actions taken

– not only a management strategic tool but also a performance measurement system

– links strategies to action

CMZ BSC

What is the CMZ balanced scorecard (BSC)?• A blueprint

– formulated by CMZ to be used as a guide and reference for • implementation of strategies and tactical objectives• monitoring • evaluation of actions taken

– not only a management strategic tool but also a performance measurement system

– links strategies to action

CMZ BSC

What is the template being used in CMZ BSC?• Template popularized by Robert Kaplan and David

Norton around 1990• Scorecard with four perspectives:

• Financial• Customer• Process• Learning and growth

• CMZ BSC – 5 perspectives [added Corporate Social Responsibility (CSR) as 5th perspective]

CMZ BSC Perspectives terminology used in 2009 (for 2010-2012):

• Financial• Customer• Process• Learning and growth • Corporate social responsibility

Perspectives terminology used in 2012 (for 2013-2015):• Governance, Service, and Finance• Customer• Process• Learning and growth of people• Corporate social responsibility

CMZ BSC

Why is the BSC called “balanced” ?

Because it considers ALL factors (the 5 perspectives),

not just the financial factor as is commonly done in business organizations,

which are important in achieving the vision-mission of an organization.

CMZ BSC

Why is the BSC called “balanced” ?Using the five perspectives of

- governance, service and finance- customer- process- learning and growth- CSRwhich are both tangible and intangible assets of an organization,

makes for the balance of the scorecard.

CMZ BSC

Governance, service, and finance –To succeed (financially or otherwise), how should we appear to our shareholders or owners?

Customer – To achieve our vision, how should we appear to our customers?

Process –To satisfy our shareholders (or owners) and customers, what processes must we excel at?

Learning and growth of people – To achieve our vision, what competencies should the organization have and how will we sustain our ability to change and improve?

To determine what to place in each perspective in the balanced scorecard, guide questions are used.

CMZ BSC

CSR – To achieve our CSR mission, how should we appear to our community?

To determine what to place in each perspective in the balanced scorecard, guide questions are used.

CMZ BSC

The ultimate outcomes for each perspective or category are as follows:

Governance, service, and finance perspective –

satisfied shareholders

Customer perspective –

delighted customers

Process perspective –

effective and efficient processes

Learning and growth of people perspective –

competent and engaged workforce

CSR perspective – corporate citizen

CMZ BSC

Governance, service, and finance perspective – To succeed (financially or otherwise), we must have

satisfied shareholders

Customer perspective – To achieve our vision, we must have

delighted customers

Process perspective –To satisfy our shareholders (or owners) and customers, we must have

effective & efficientprocesses

Learning and growth of people perspective – To achieve our vision, we must have

competent and engaged workforce

Integrating the guide questions and ultimate outcomes in each perspective or category -

CMZ BSC

CSR perspective – To achieve our CSR mission, we must be

a corporate citizen

Integrating the guide questions and ultimate outcomes in each perspective or category -

CMZ BSC 2 Major Categories:1. Whether the BSC is based on strategic or

operational objectives (strategic objectives are general and longer-term, usually three years; operational objectives are more specific and shorter-term, basically one year)

2. Whether the BSC is made for the whole hospital (corporate); for a particular unit or section in the hospital (department or unit); or for an individual staff.

CMZ BSC

What is the BSC framework being used in CMZ?

CMZ BSC FrameworkBusiness & Organizational

Milestones / TargetsVision - Mission

Alternative Strategic Intents

Prioritize and align through BSC Process

Translate to Function Level Scorecards (CMZ , Unit, Staff)

Desired Outcomes

Drivers

CorporateBalanced Scorecard

Governance, Service, Finance PerspectiveSatisfied Shareholders

Customer PerspectiveDelighted Customers

Process PerspectiveEffective & EfficientProcesses

Learning and Growth of People PerspectiveCompetent & Engaged Workforce

CSR Perspective Corporate Citizen

CMZ BSC Framework

Translate to Function Level Scorecards (CMZ, Unit, Staff)

CMZ or Corporate BSC – formulated by the Top, Senior, and Middle Management Team.

Unit BSC – formulated by all medical or non-medical specialty units in the hospital (offices, divisions, departments, services) cascaded from / guided by the CMZ BSC.

Staff BSC – formulated by an individual CMZ staff on how he/she will contribute to the unit or CMZ BSC.

CMZ BSC Framework


Contents of BSC

• Perspectives (5) • Goals (Strategic Intent – General Objectives)• Tactical Objectives (Specific Objectives – Key Result Areas) • Performance Measures: Outcome and Target (Key Performance Indicators) • Initiatives (Programs, Projects, Tasks, Activities) • Action Registers / Action Plans of Initiatives • Resources / Budget• Timetable (Timelines or Gantt charts)• Person-in-Charge (Champions, Task Forces)

CMZ BSC Framework


Tabular Presentations of BSC

• The Main BSC With identification of “Initiatives” With performance data and analysis

• The Action Registers / Plans of the Initiatives Action registers / plans of programs / projects / tasks / activities (with design and development plans)

CMZ BSC Framework


Tabular Presentation of the Main BSC(Scorecard with identification of “Initiatives”)

Perspective Goals

(Strategic Intent – General Objectives)

Tactical Objectives

(Specific Objectives – Key Result Areas)

PerformanceMeasures: Outcome /Target

(KeyPerformance Indicators)

Initiatives

(Programs, Projects, Tasks, Activities)

CMZ BSC Framework


Tabular Presentation of the Main BSC(Scorecard with performance data and analysis)

Perspective Goals

(Strategic Intent – General Objectives)

Tactical Objectives

(Specific Objectives – Key Result Areas)

PerformanceMeasures: Outcome /Target

(KeyPerformance Indicators)

Status (Q1/Q2/Q3/Q4)

Data:Analysis: Variance - achieved / NOT achievedCauses and corrective actions for negative variances

CMZ BSC Framework


Tabular Presentation of Action Register / Plan of Initiatives (Programs / Projects / Tasks / Activities)

Objectives(KRAs)

PerformanceMeasures: Outcome

/Target(KPIs)

Resources Timelines Person-in-charge

*Should be accompanied by a systematic design and development plan.

CMZ BSC Framework


Operational Definitions of TermsPerspective:

Governance, Service, and Finance – leadership, key service offerings, business development and financial management.

Customer – external and internal stakeholders.

Process – the way of doing things to satisfy the owners and customers.

Learning and Growth of People – staff or workforce development, training and education involving everybody, from top and senior management team down to personnel (rank and file).

CSR – corporate citizenship of CMZ and its staff.

CMZ BSC Framework


Operational Definitions of Terms

Goals and Objectives

Goals – general strategic intent (general objectives)

Objectives – tactical or more specific objectives for the general strategic intent or key result areas for programs, projects, and tasks.

Key Results Areas (KRA) – essential steps that will reflect accomplishment of the programs, projects and tasks, in the most efficient way possible.

Key Performance Indicators (KPI) – essential measures (with specified targets) of accomplishment of KRAs.

CMZ BSC Framework



Initiatives – formulated programs, projects, tasks, and activities that will be needed or will be used to achieve objectives.

Programs – a package of initiatives that includes at least two distinct, extensive, and interrelated projects.

Projects – a package of initiatives that includes at least two distinct, extensive, and interrelated tasks.

CMZ BSC Framework



Initiatives – Formulated programs, projects, tasks, and activities that will be needed or will be used to achieve objectives.

Programs – Projects –

Tasks – may be classified into two types - activities which may be common or run-of-the-mill in which case the word “activities” is used (see below) and activities which may be special or distinct in which a label may be used, if deemed necessary.

Activities – Generic or run-of-the-mill tasks that need no special name to identify them; examples of generic tasks are “to implement policies and procedures”, “to evaluate their implementation,” etc.

CMZ BSC Framework



Resources – external and internal resources needed to accomplish objectives or key result areas in terms of man, method, material, and machine. As much as possible, with peso equivalent of resources.

Timetable – as much as possible, targeted month and year of completion, if not the specific date. Quarter of the year may be placed as time for completion, especially for programs and projects.

Gantt charts which are tabular presentations of the timelines may be used.

Persons-in-Charge – may be an individual or group of individuals or task force.

History of CMZ BSC

• Initiated in October, 2009 by the Top, Senior, and Middle Management Team (during the 1st CMZ formal strategic planning conference) to be used as primary management strategic and measurement tool

• Envisioned to be useful in serving as - communication - deployment - alignment - collaboration - monitoring - evaluation tool

in the implementation of strategic objectives of CMZ.

Policies on CMZ BSC (2013 Onwards)• A balanced scorecard shall be used as a management as well as a

performance evaluation tool in Ciudad Medical Zamboanga.

• There shall be a hospital or corporate balanced scorecard which shall be formulated by the Top, Senior, and Middle Management Team.

Policies on CMZ BSC (2013 Onwards)• A standardized balanced scorecard template shall be used in CMZ

and by all units required to have one.

• All units except committees shall have a balanced scorecard which shall be aligned to the hospital or corporate balanced scorecard.

Policies on CMZ BSC (2013 Onwards)

• There shall be an annual formulation, quarterly progress report, and a year-end report on the hospital and unit balanced scorecards.

Policies on CMZ BSC (2013 Onwards)

• The Task Team Corporate Planning shall be the unit in charge of coordinating and monitoring the balanced scorecard of the hospital.

How to Implement the BSC Use the CMZ BSC framework and policies as guides

in

formulating, monitoring, and reporting

the BSC (CMZ, Unit, and Staff).

How to Implement the BSC (formulating, monitoring, and reporting)

For CMZ / Corporate BSC


For CMZ / Corporate BSC –

• The Management Team (top, senior and middle management) shall formulate the CMZ BSC for the year during the annual planning conference.

• The CMZ BSC shall be formulated in consideration of the latest strategic plan, annual business plan and targets for the year.



• The formulated CMZ BSC for the year shall be presented to the Board of Directors for approval.



• The CMZ BSC for the year approved by the Board of Directors shall be presented to all the staff by the President /CEO not later than the last week of November. Such presentation shall facilitate communication, deployment, alignment, and collaboration in the implementation of strategic objectives by all units of CMZ.



• The Task Team Corporate Planning shall collate all data from unit BSCs to come out with quarterly monitoring and year-end report on the CMZ BSC.


For Unit BSC (Departments and Sections)


For Unit BSC (Departments and Sections) –

• The Heads shall formulate the Unit BSC for the year during the annual planning conference of the unit.

• The Unit BSC shall be formulated in consideration of the CMZ’s and unit’s latest strategic plan, unit’s annual business plan and targets for the year.



• The formulated Unit BSC for the year shall be presented to a higher office for approval.



• There shall at least be a quarterly and an end-of-year reporting of Unit BSCs to a higher office.


Steps in formulating a Unit BSC


Steps in formulating a Unit BSC:– Take hold of the CMZ BSC.– Identify goals and tactical objectives in the five

perspectives of the CMZ BSC which are pertinent to your unit and in which you are expected to contribute.

– Include these goals and tactical objectives in your unit BSC.


Steps in formulating a Unit BSC:– Add other goals and tactical objectives which are

relevant to your unit’s authorized functions.– Set the performance targets of the chosen tactical

objectives for your unit, having in mind you are expected to contribute to the attainment of targets set in the CMZ BSC.


Steps in formulating a Unit BSC:– Identify the program/project/tasks/activities you will

institute to achieve the tactical objectives.– Present your unit BSC to a higher office.– Your approved BSC will serve as your performance

monitoring and evaluation tool or card for the year.


For Individual BSC


For Individual BSC –

• Every staff (CMZ managers, medical staff, and rank and file) shall formulate an Individual BSC for the year during the annual planning conference of the unit.



• The Individual BSC shall be formulated in consideration of the unit’s annual business plan and targets for the year.



• The CMZ BSC shall automatically constitute the Individual BSC of the President / CEO.

• The Unit BSC shall automatically constitute the Individual BSC of the heads of units.



• Every staff other than the President / CEO and heads of units shall formulate his / her Individual BSC signifying his / her pledge / contribution to the Unit BSC for the year.



• The formulated Individual BSC for the year shall be presented to a concerned unit head for approval.

• There shall at least be a semi-annual and annual reporting of Individual BSC to a concerned unit head.



• All unit heads shall monitor the Individual BSCs and use them as management tool and performance evaluation.


Steps in formulating an Individual BSC


Steps in formulating an Individual BSC:– Take hold of your unit BSC.– Identify tactical objectives in the five perspectives of

your unit BSC in which you should and can contribute.– Set the performance targets of the chosen tactical

objectives.


Steps in formulating an Individual BSC:– Identify the program/project/tasks/activities you will

institute to achieve your tactical objectives.– Present your BSC to your immediate superior for

approval. – Your approved BSC will serve as your performance

monitoring and evaluation tool or card for the year.

Understanding and Implementing CMZ BSC

Summary


• What is a balanced scorecard (BSC)? CMZ BSC?

• What is the template being used in CMZ BSC?

• Why is BSC called “balanced”?

• What are the guide questions to answer the 5 perspectives of BSC?

• What are the ultimate outcomes of the 5 perspectives of BSC?

• Major categories of CMZ BSC


• BSC framework being used in CMZ

• The different function level scorecards

• The contents of BSC

• Tabular presentations of BSC – Main BSC and Action Registers / Plans

• Operational definitions of terms used in BSC


• History of CMZ BSC

• Policies on CMZ BSC (2013 onwards)

• How to implement the BSC – for CMZ BSC

• How to implement the BSC – for Unit BSC

• How to implement the BSC – for Individual BSC

Understanding and Implementing CMZ BSC

For Coaching on CMZ BSC

See Any member of the

Task Team Corporate Planning

orYour Unit Head

Recommended Reading:https://sites.google.com/site/balancedscorecardofcmz

https://sites.google.com/site/balancedscorecardofcmz

Healthcare

Understanding and Implementing CMZ BSC - 2014 Edition