Generic Strategies and Balanced scored Card

Determine whether or not you believe the process of formulating strategy in the health care industry is complex. Justify your response with at least one (1) example of a situation or scenario that supports your position.

When it comes to the health care industry formulating strategy can be very complex because having so many competitors that offer some of the same services you need to be able to stand out from other facilities. It can be complex because depending on what needs to be done to reach a certain goal it can be very costly and in the long run will it be worth the money spent if it doesn’t bring in any revenue or make a difference. For example the Cancer treatment center of America can be a facility that’s complex when formulating strategies.

Assess the degree of guidance provided by Kaplan and Norton’s Balanced Scorecard as a management tool for guiding health care marketers in performing strategic management duties and responsibilities. Provide at least two (2) specific examples of the Balanced Scorecard Model that apply within a health care organization with which you are familiar.

The balanced scorecard is a system used for strategic planning and management that can be used broadly in business industry, government, and in this case a nonprofit organizations to align activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. It was introduced by Robert Kaplan and David Norton as a performance measurement framework that added strategic non-financial performance measures to traditional financial metrics to give managers and executives a more ‘balanced’ view of organizational performance. For example starting with the organizational capacity of the strategy mapping it consist of improving knowledge and skills and improving tools and technology. The next level would be the internal process which consist of increase process efficiency which means that a way to make sure that patients were happy they would have to lower the cycle time. Lowering the cycle time means not having customers wait a long period of time and this would improve customer retention. The next level would be the financial aspect and piggy backing off the increase process efficiency this would lower cost leading to increase profitability and also along with the improving customer retention it will help increase revenue.

Fortenberry, J. L., & Fortenberry, J. L. (2010). Health care marketing: Tools and techniques (3rd edition). Sudbury, Mass: Jones and Bartlett Publishers.