Donor Alliance Case Study

Donor Alliance Balanced Scorecard

               How Can the Donor Alliance Benefit from Using a Balanced Scorecard (BSC)?

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A BSC is a crucial tool for every business. Typically, a BSC has four main perspectives which include organizational capacity, financial, customer and internal process (Bhagwat & Sharma, 2007).  In this case, Donor Alliance has considered the customer, financial and internal process perspectives but has left out the organizational capacity aspect. This perspective focuses on the firm’s plan for knowledge and innovations as it moves into the future and as the market grows more competitive by the day. Thus, using a balanced scorecard can greatly help Donor Alliance in refocusing on their innovation strategy as it moves into the future.

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Why Was the Donor Alliance Successful from a Financial Perspective?

               From a financial perspective, Donor Alliance was successful because it uses tools of financial projections and relevant key performance indicators of the BSC that keep the management posted on the performance of the business. For example, Donor Alliance uses the “Organs Billed” metric as a measure of financial cost linked to their supply chain (National Institute of Standards and Technology, n.d.). They then scan the associated expenses in the organ procurement process and design new ways of saving on cost which in turn maximize the financial gains from the supply chain. 

Why Was Donor Alliance Successful from a Customer Perspective?

               Donor Alliance is excellent in managing its client base. The organization values customer feedback and conduct periodical surveys to assess the level of customer satisfaction. This metric is an important KPI in the balanced scorecard. For example, in a 2018 study, customers reported 100% satisfaction with the organization’s services (National Institute of Standards and Technology, n.d.).

Why Was the Donor Alliance Successful from a Business Process Perspective?

               The business process perspective requires the business to monitor its internal and external efficiency and effectiveness. Donor Alliance focuses on its internal processes by monitoring KPIs such as unit cost and its organ procurement lead time every year. For example, the company expected the unit cost to rise from 549 in 2017 to 698 in 2018. The use of unit costs is a measure of internal business processes (National Institute of Standards and Technology, n.d.). 

Why Was Donor Alliance Successful from a Learning and Growth Perspective?

               The Donor Alliance organization focuses on staff training as part of its learning and growth dimension of the BSC. In the period between 2015 and 2018, Donor Alliance increased its specialized staff training from 31% to 38% (National Institute of Standards and Technology, n.d.). This training is ongoing, and the organization is also expanding its certification plan. This continued training and certification makes the Donor Alliance successful in its learning and growth aspect of the BSC.

Donor Alliance SWOT Analysis

STRENGTHS WEAKNESSES
Strong base of dedicated donors -Committed staff and management -The organization has a strong financial base High unit cost associated with the organ donation. – Lack of a framework to foster innovation, research and development. 
OPPORTUNITIES THREATS
Increased donor base in future -Better technology to help in organ storage and transfer. Loss of donors to competitors in the organ donation industry.  

How to Mitigate Threats and Challenges

               One way to address the challenges is to develop a framework for innovation. Such a framework will increase efficiency and effectiveness as well as reduce unit cost per organ donation and transplant. Donor Alliance should ensure the use of high technology and low cost but quality services to ensure that clients remain motivated. If Donor Alliance adheres to these recommendations, it will mitigate the threat of losing of donors to competitors in the organ donation industry. 

References

Bhagwat, R., & Sharma, M. K. (2007). Performance measurement of supply chain management: A balanced scorecard approach. Computers & Industrial Engineering53(1), 43-62.

National Institute of Standards and Technology. (n.d). Malcolm Baldrige National Quality Award 2018 Award Recipient, Nonprofit. Retrieved from https://www.nist.gov/baldrige/donor-alliance

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Daniel Fortune

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