MBAO 430

Balanced Scorecard Assignment Instruction

Find a real (not hypothetical) organization or a division/department of it, either for

profit or non-profit, that you are interested in and have reasonable access to its
information. It can be an organization you are/were associated with or one that you
want to work for in the future. If your choice is a local division or department, make
sure that the unit has relatively independent strategic planning and financial
reporting. This assignment requires you to use balanced scorecard methodology to
conduct strategic planning for this organization (or department).

Deliverable:

 A business memo documenting your analysis process and detailed

recommendation for actions.
Specifically, the memo should document your SWOT analysis, strategic formulation,
and measurement plans. Please follow the appendix for specific content and format
requirements.

The following steps are meant to walk you through the process of developing a
balanced scorecard. It should be treated as your own draft. You do not need to
submit your answer to each of the following questions/steps. Just the memo is
required. (Please read the Appendix for more information)

1) Familiarize yourself with the Mission and Vision of the organization/ division/
unit;

2) Conduct SWOT analysis from the four perspectives (table 1 below)

Note: Table 1 is a required exhibit that must be attached to the memo.

S W T O

Customer

Process

Learning
and
Growth
Financial

1
3) Identify several key entries from the table above, and analyze why they are more
important than others thus must be addressed. You should argue how these
entries are closely related to the organization’s Mission and Vision. Identify the
mismatches between external analysis (T and O) and internal analysis (S and W).

4) Formulate two strategies that can address the issues identified above. Use
concepts such as order qualifier, order winner and core competency to justify
your arguments on why these strategies are appropriate. (Follow the table in the
next page as an example).

Note: If the organization or unit of your choice has already established and clearly
articulated a set of strategies, you do not need to reinvent the wheel. Just select two
strategies. Use the results from SWOT analysis and the concepts of order winner, order
qualifier, and core competency to explain why they are appropriate strategies.

5) Formulate several strategic objectives for EACH strategy. These objectives

should be more specific than the strategy and often represent cause-and-effect
relationships with the strategy (follow the table in the next page as an example).
The objectives should be classified as customer, process/operations, learning
and growth or financial. All objectives put together should sufficiently address
how the strategy is going to be implemented.
Note:
a) You should have at least one objective in each of the C, P, L&G, F category.
b) You generally should have more than one objective in at least some of the C,
P, L&G, F categories. (i.e. just 4 objectives for a strategy is most often NOT
sufficient).
c) A table similar to the one in the next page is a required exhibit that must be
attached to the memo for submission.

2
Step 4: Formulate Step 5. Formulate the Definition or Step 6: Key KPI
the Strategies Strategic Objectives explanation Performance measurement
Indicators (KPI) and Target Value
Example: Customer Strengthen patient Patients from the key  satisfaction scores in 95% satisfied or highly
Strategy 1: satisfaction rating population should be satisfied patient after-care survey satisfied in the after-
To have a focused strategy from all key with the facilities, wait time, care survey for
to deliver a full spectrum of populations and facilities, wait time,
healthcare services to key communication/information and communication by
populations of women, during care 4th quarter 2016
children and seniors. Customer Increase the variety Provide more types of care to  % of internal referral 85% of referral being
of healthcare the focused key populations (So  % of revenue from new internal
services available to that PCP referral stays within programs 10% revenue from new
key patient this medical center) programs
populations
Note: This table is provided as Processes/ Increase patient Increase the number of  Length of stay Average Length of stay:
an example and for illustration Operations serving capacity patients we can handle from  Appropriate bed usage 5 days
purpose only. It is NOT entirely the target populations 85% bed usage
 Aggregate patient
completed. Every cell must be
filled in. You must come up
outcome
with something similar for 
TWO separate strategie. Processes/ Promote health  % of the patients on
Operations maintenance for integrated care plan
chronic conditions  Readmit rate
Processes/ Improve care  Overall in-hospital
Operations quality mortality rate
 Patient attrition rate
 30 day Readmit rate
 Length of stay
Learning Increase access to  Market share
& growth care among key
populations
Learning Update key hi-tech  Equipment average age
& growth equipment
Financial Decrease cost of  Cost per unit of service
care
Financial Increase population  % of revenue from new
focused care center programs
profitability  Revenue per unit of service
3
4
6) Identify KPIs for each objective, and their corresponding target KPI value. (Use the
table on the previous page)
Note:
a) Each objective should have at least one KPI (some objective should have
more than one KPIs). Each KPI should have a target value. If not obvious,
explain how that KPI should be measured.
b) A KPI should be a direct indicator to its objective. A common mistake is
that the identified KPIs do NOT directly indicate the performance outcome
of their corresponding strategic objective.
c) If appropriate, you can use the same KPI for multiple objectives. It is
actually encouraged to do so. Measurement itself is non value added.
Smaller number of KPI means cost saving!
d) Another common mistake is that the target value (the last column) is not
really the value of the KPI in the previous column.

7) Prepare a business memo conveying the analysis process above. Take a reader’s
perspective when preparing the memo (i.e. you are seeing this strategic plan to the
reader). Don’t just attach the tables/exhibits, highlight the important issues in the
memo and explains those table entries that are not most immediately obvious. Both
the content and the presentation/communication will be evaluated for grading.

Appendix

The format for business memos can vary, but should include most of the following
elements
1. Heading:

MEMORANDUM
To: Memo Recipient(s) (Chair of the board or president)
From: Person(s) conducting analysis and authoring this memo (You)
Re: Topic, subject or focus of memo
Date: Date of transmission

2. Overview: Use one paragraph (no more than a page) to briefly summarize this entire
memo (i.e. what was the business problem facing the organization that triggers this
balanced scorecard analysis, what is the main strategy you recommend? What are
the expected results?).This is an abstract of the entire memo. After reading this
paragraph, the reader should get a sense on whether it is worthwhile to continue
reading the rest of your memo.

3. Background/Introduction– Describe in greater details on what exactly the business

problem(s) is (are) facing the organization, why such problem is urgent and must be
addressed now. The objective is to earn the management buy-in to this memo. You

5
 should discuss the mission and vision; summarize the results of SWOT analysis.
Focus should be placed on identifying the strategic mismatch (and the operational
consequences) between external evaluation on order qualifier/winner and inter
analysis on the organization’s own core competence.

4. Analysis –You should start with a brief statement that the entire analysis was
conducted on the basis of the Balanced Scorecard framework by Kaplan and Norton,
and very briefly explain what BSC is and what major benefits it could bring. Then,
discuss the process of formulating the strategies, objectives, and KPIs. You may want
to include the following:

a. Develop and present two business strategies for this organization.

b. Explain why these two strategies are appropriate to the business context
of the organization.

c. Select one strategy and briefly explain why this specific strategy out the
two is chosen to be focused on in this memo.

d. Highlight some of the key strategic objectives, KPIs and measurement

procedures.

5. Findings and Recommendations –Discuss how you would recommend the strategy to
be implemented (action plans). You may want to include the following:

a. How the strategic plan should be communicated to the responsible

parties?

b. Where do you plan to get the KPI measurement data? What are the costs
or additional efforts needed to get the data?

c. What are the budget arrangements? What are the expected hurdles
/challenges during the implementation?

d. What is the overall timeline to put everything in place?

e. The last paragraph should look into the future and briefly summarize the
expected benefits to the organization if the above recommendations are
successfully implemented (i.e. this is a conclusion, to close the memo).

6. (optional)Bibliography- citations if there is any. Feel free to choose your favorite

style.

7. Exhibits – It is required to include the two tables above as exhibits to this memo.
Attach both as editable tables (NOT as pictures) to the memo in a single MS Word

6
 document. Feel free to include other information as additional exhibits if you deem
necessary.

The entire memo, EXCLUDING bibliography and exhibits, should be single spaced, 5
pages max.

7
 Grading Rubric:
Criteria Highest Your Comments
Possible score
Overview section: 10
 Clearly summarized the entire
memo?
Background section: 15
 Clearly presented the business
context/problem?
 Clearly explained the strategic
importance of the memo?
 Used proper terms such as mission,
Order winner, order qualifier, core
competency?
SWOT table: 15
 Entries are clear & easy to
understand?
 Entries are in the correct spots?
 Analyses are reasonably thorough?
Analysis section: 15
 Clearly identified 2 operational
strategies?
 Sufficiently explained why these 2
strategies are appropriate results
from the SWOT?
Findings/Recommendations/Conclusion 15
 Reasonable explanations on
implementation (where to get
measurement data, planned
timeline, budget etc.)?
 Some type of conclusion? Look into
the future/wrap up.
Table 2 attachment/exhibit: 20
 Appropriate Strategic objectives?
 Objectives sufficiently address the
strategies?
 KPI and target values are properly
designed?
Format of the memo, Overall presentation, 10
language, structure, etc.

Raw total: ___________________ * 20% = ____________________

Note: This assignment will be graded out of 100 points, and accounts for 20% of your
final grade.