Texas Tech Physicians uses the Balanced Scorecard concept which was originally developed by Robert Kaplan, Ph.D., of Harvard University and David Norton, DBA. We talk about this a great deal and it is in our “gears graphic” that you see around our buildings and that we often go over in meetings. It is a framework for measuring our organizational performance by using a balanced set of performance measures. We call these Key Performance Indicators or KPIs.

How this came about is the belief, by many observers across America, that numerous organizations use only short-term financial performance as a measure of success. With our three part mission of teaching, research and clinical activity--that just doesn’t work for us. The balanced scorecard adds additional non-financial strategic measures to the mix in order to better focus on long-term success.

We think the balanced scorecard approach allows us to connect the dots between big picture strategy elements such as mission (our purpose), vision (what we aspire for), core values (what we believe in), strategic focus areas (themes, results and/or goals) and the more operational elements such as KPIs.

As you probably know, our KPIs center on the following:

• Patient Satisfaction
• Financial Performance
• Quality Medical Care
• Employee Satisfaction
• Business Growth

In summary, the balanced scorecard approach is a strategic planning and management system that helps Texas Tech Physicians:

• Communicate what we are trying to accomplish
• Align the day-to-day work that everyone is doing with strategy
• Prioritize projects, products and services
• Measure and monitor progress towards strategic targets

And, you might be interested in knowing, that it is a management tool used by many Fortune 500 companies and was named by the editors of Harvard Business Review as one of the most influential business ideas of the past 75 years.

Have a great week!