CONTENT:
Balanced Scorecard: A balanced scorecard is a kind of management practice that compliments or replaces the drivers of past performance like the financial measures with the future performance drivers like the customer satisfaction, development of human and intellectual capital and learning. This principle was put forward by Kaplan and Norton (Bhagwat and Sharma 2007). Duke children`s Hospital decided to adopt the balanced scorecard due to the following reasons: The medical allowances were declining which caused the revenues of the Hospital to reduce drastically. The profit margin then became very narrow. The reimbursement of patients shot to very high levels accompanied by a rise in the expenses. Costs per case also rose to exorbitant levels forcing them to trim resources. Complains from the patients parents became intense due to the low quality of services. The conflict between administrators and the clinicians on whether to put the patients` plight ahead or to control costs (Mueline et al 2000). The reaction of the staff was very negative to what was happening to the Hospital. Most decided to give up their jobs as remuneration rate dropped from 80th percentile to 70th percentile. Staff satisfaction remained in an all time low. Clinicians felt powerless in the long end as their goals were not marching those of the administrators (Mahaffey and Mclean 2000). The management decided to follows the three steps below in creating a balanced scorecard: To begin with, ...