Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 3

Balanced Scorecard
Required Prepare Problem 2-35.
Reference:
Strategy; Balanced Scorecard: Health Care Consumers, employers, and governments at all levels are very concerned about the rising costs of health care. As a result, health care systems nationwide are experiencing an ongoing demand to improve the efficiency of their operations. The health care industry faces significant challenges due to changing patient needs, reduced reimbursement, and the fierce competitive environment. The industry is experiencing consolidations through system wide mergers and acquisitions as a way to reduce operating costs. Patients and payors are demanding a one-stop shopping approach. While improving operations is necessary, the quality of the health care delivered must not be jeopardized. The Medical University of Greenbelt is feeling the impact of the increasing penetration of its market by managed care companies. As a result, management has been asked to develop a strategic plan to ensure that its funding sources will continue to meet the demands of its patients. Because it is an academic medical center, the Medical University of Greenbelt's mission encompasses three components: clinical care, education, and research. Management must consider these competing objectives in the proposed plan:
Required
1. What should the Medical University of Greenbelt's strategy emphasize
2. Do you think a balanced scorecard could help ensure the success of the Medical University of Greenbelt What advantages does a balanced scorecard have over a traditional approach
3. Determine three or four critical success factors for each of the four areas within the balanced scorecard.
4. What types of challenges is management likely to face in implementing a balanced scorecard How can employee buy-in be increased