Performance Evaluation And Benchmarking Accounting Essay

The National Blood Service became a national service in 1993. Prior to 1993, there were 14 blood Centres in England all roll uping testing and distributing blood and blood merchandises. In October 2005, the service was re-named The National Health Service – Blood and Transplant ( NHSBT ) and became established as a Particular Health Authority when unifying with UK Transplant.

There were legion synergisms and clear chances to cut duplicate and to cut down costs to the NHS. NHSBT consists. ( NHSBT Intranet, 2010 )The National Blood Service – Collection, Processing, Testing and Issue of blood and blood merchandisesOrgan Donation and Transplantation – Collection processing testing and distribution of variety meats for organ transplant and Tissue services.Bio Products Laboratory – Pharmaceutical wing of the administration to fractionate plasma into its constituent curative parts to provide the NHS and any other wellness organisation.The NHSBT is accountable to the Department of Health for the criterion of merchandises and services provided and are besides capable to the Healthcare Commission ‘s ‘Annual Health Check ‘ against the Department of Health ‘s ‘Standards for Better Health ‘ – the national procedure by which the NHS public presentation is measured and assessed. NHSBT Performance ( 2010 )As stated by ( dti n.d. ) betterment is a ne’er stoping rhythm.

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Within this rhythm public presentation measuring plays many of import functions, such as:aˆ? Identification and trailing of advancement against organizational endsaˆ? Identification of chances for bettermentaˆ? Comparing public presentation against both internal and external criterions.The rating standard appended lists many public presentation betterment tools. The three selected are based on the marker exercising ; the three methods are Benchmarking, Balanced Scorecard and Audit. Each tool is effectual in its ain right and each will be discussed within the study.Reviewing an administrations public presentation is of import when explicating the scheme and way. It is imperative to understand where the administrations strengths and failings lie before shiping on any public presentation betterment.

First we have to make up one’s mind on the administrations present place. Using SWOT to analyze the strategic demands and betterments, the strengths can be examined to see if any of these supply penetration into other countries that are non portion of the SWOT statement. These may supply way for other SWOT analyses. The failings tell you the current province sing the SWOT statement. Once the betterment tools have been initiated and carried out SWOT analysis should be completed once more, excessively see if any of the original failing still persist. Opportunities are ends and they should be prioritized. Once SWOT has been completed action programs will be required.

These can be formulated as Gantt Charts or ”to do ” lists. This will let for execution to be managed as a undertaking with conveyable duties and due day of the months. The spreads that are highlighted will enable the administration to supply resource and clip to shuting the spreads and bettering the overall public presentation of the administration.As discussed by Ahmed and Rafiq ( 1998 p. 237 ) , the comparings made and identified with benchmarking are about placing and understanding the spreads. The public presentation steps discussed will help in the designation and rectification of the spreads.

Finally the execution scheme will be formulated and the critical success factors ( CSF ‘s ) , that would hold a important impact on the execution will be identified by the SMT.


Within the populace sector, benchmarking activities are influenced by many activities, such as authorities Bowerman, Francis, Ball and Fry. ( 2002 p 430 ) . Due to the planetary fiscal crisis and cuts within the populace sector, any enterprise will constantly undergo near scrutiny. Due to resource issues within the administration, the fright is that benchmarking will non be prioritised and non be completed right. The Benchmarking procedure will necessitate committedness and clip from the directors and staff ( Hinton, Francis and Holloway ( 2000 p 52 ) .As discussed by ( tutor2u n.

d. ) the benchmarking procedure involves looking outward. This requires looking outside at a peculiar administration, industry or state to analyze how public presentation degrees are achieved by others. This will enable the NHSBT to understand where they need to better to accomplish excellence. When the lessons learnt from a benchmarking exercising are applied, they facilitate improved public presentation in all critical countries of the administrations environment ( tutor2u n.d. ) .

Harmonizing to tutor2u ( n.d. ) and Grayson ( 2002 ) cited by Auluck ( 2002, p. 112 ) the application of benchmarking involves certain cardinal stairss:Understanding of the bing proceduresAnalysis of other administrations proceduresComparison of your ain administrations public presentation with that of othersExecution of the stairss necessary to shut the public presentation spreadSenior direction support and committednessIntegration with the administrations schemeMust include all staff and be addressed as a squad activityMust have correct and compendious planning, administration and directionThe points discussed are priceless to the execution of benchmarking. The first thing the administration needs is an apprehension of the current procedures. Without the apprehension of where we are now, the benchmarking procedure will be of small usage.

Benchmarking should non be and can non be considered a one-off exercising. This is top directions precedence. The benchmarking procedure will necessitate top precedence to be effectual ; it must go an built-in portion of the administration with the ultimate end of maintaining up with the agile and ever-improving best pattern ( tutor2u n.

d. ) . The benchmarking procedure will convey many benefits to the administration. Such as: Stage-Gate ( n.d.

)Designation of specific job countriesPrioritisation of betterment chancesShifts internal thought from “ inputs ” to “ end products ” ( i.e. steps )Serves as an first-class baselineBrands it easier to increase public presentation outlooksCreates a sense of fightThe pick of attack is likely to be critical to the success of the benchmarking enterprise. It is suggested by Auluck ( 2002, p. 113 ) that benchmarking exercisings that examine procedures are more likely to take to public presentation betterments, since they examine the spreads in public presentation.

Camp defines four types of benchmarking: Kennedy, Allen, Allen ( 2002 p. 432 ) . Functional ; generic ; internal and competitory.Private sector benchmarking has best pattern as its primary focal point Bowerman.

M. , Francis, Ball and Fry ( 2002 p. 433 ) .

The purpose of benchmarking within the private sector is to go the best. Within the public sector administrations strive to go “ good plenty ” to show that they are non the worst, the purpose is for norm instead than the best. This is most noticeable within the NHSBT where there is no competition within the UK, which constantly means that the administration is content with merely being good plenty. Benchmarking should be seen as an internal direction tool, which will assist the NHSBT to alter procedures and scheme.The go oning popularity of public presentation conference tabular arraies, particularly in the populace sector, and the inclination for “ benchmarking ” and “ benchmark ” ( Hinton, Francis and Holloway ( 2000 p. 54 ) is of concern for the NHSBT. The difference between the two will necessitate to be stipulated and the demand to cut down the usage of conference tabular arraies must be implemented.

The conference tabular arraies will merely function to stifle the employee ‘s spirit and morale if they see no seeable ascent up the conference tabular array. The benchmarking wheel discussed by Bhutta and Huq ( 1999, p 258 ) is a utile ocular tool to utilize for the SMT and staff likewise.

The benchmarking Wheel – Bhutta and Huq ( 1999 p.

258 )

The thought of benchmarking within the NHSBT would be to better public presentation across the supply concatenation from the blood contribution stage to recipient patient. Although there are many benefits that benchmarking will convey to the administration, there are some requirements that must be adhered to for successful benchmarking. Without committedness of the top direction ; linkage to the vision and scheme ; preparation and a desire to go the best, the enterprise will neglect. ( Goetsch and Davis 2010, p.

522 )

Balanced Scorecard

Committedness of the senior direction squad ( SMT ) is critical to the successful execution of the Balanced Scorecard ( BSC ) ( Parmenter, n.d. p1 ) . Commitment entirely is non plenty ; there must be top degree engagement. The first stairss of the Implementation procedure would be educating the SMT on what the balanced scorecard is and what benefits it will convey to the administration. Without the complete backup of the SMT the BSC will go another piece-meal craze that will merely melt off into the abysm along with other betterment methods that have been tried before. For the BSC to be successful at that place needs to be top precedence and full committedness and engagement non merely from the top but from every employee within the administration. The stairss required to implement the balanced scorecard are discussed by Bryant ( n.

d. p 1 )Assess the mission and vision statements.Review organizational scheme. Concentrate the scorecard on making a by focal point on client wants and demands.Specify the scorecards aims.

These should be actionable and mensurable.Interpret and pass on the scorecard from top direction through to baseline staff. Highlight the degree of committedness, support and resources to be dedicated to the scorecard in the hereafter. The communicating cringle must besides take into history feedback.For any enterprise to truly work the critical success factors have to be considered and determined.

These will be the accelerator that triggers the way of the public presentation steps. The CSFs are the facets that determine the organisational and where the administration needs to execute good. From the CSF ‘s the Key Performance Indicators ( KPIs ) can be determined. These public presentation steps allow the scheme to b implemented at the operational degree. Kaplan and Norton recommend that a upper limit of 20 KPI ‘s are used Parmenter, n.d.

P 5 ) . It is important that the SMT focal point on supplying the undertaking squad with the CSFs. If this is done good the balanced scorecard will be effectual, but the scorecard must be tailored to the demands and be adapted to the administration. ( Student Notes 2010, session 9:2 p. 11 )Comparing the administrations public presentation with one who does better than you can hold two results- ‘turning green with green-eyed monster ‘ or ‘using it for self-reformation ‘ Balanced Scorecard Designer ( n.

d. ) . If the BSC is implemented right there are legion benefits that the administration will accrue, such as: Effective monitoring of public presentation ; alliance of the scheme and operations ; increased consciousness and understanding throughout the work force on the strategic purposes and how these are traveling to be achieved and doing the administration more flexible and agile.Kaplan and Norton identified five rules of successful administrations ( Parmenter, n.

d. P 2 ) . These five rules are a description of the cardinal elements an administration needs to concentrate on to present its scheme and deliver consequences. They are as follows: ( Parmenter, n.d. P 2Mobilise alteration through leadingTranslate the scheme into operational footingsAlign the administration to the schemeMake scheme everyone ‘s occupationMake scheme a continual procedureThe above rules are indispensable to the success of the balanced scorecard execution. The SMT must be committed to the BSC, to drive it down through the administration.

Properly implemented, the BSC will make a dynamic environment. But before it can make this, the SMT must be sold on the construct ( Parmenter, n.d.

P 2 ) .If the SMT does non see the BSC as an betterment tool, the whole procedure will be hard, for illustration, when make up one’s minding on which KPIs to utilize and which tradeoffs are to be made. ( Parmenter, n.d. P 2 ) .The balanced scorecard is powerful tools that will enable the administration to implement its vision and scheme. ( Kaplan and Norton 1996 cited by Chia, Goh and Hum 2009 p.

605 )

Audited account

Quality Audited accounts are an indispensable tool for the uninterrupted betterment of an administration. Early in an administrations lifecycle audits tend to concentrate on attachment to criterions and ordinance whereas as the administration matures so the focal point can switch to continual betterment whilst still keeping conformity.Audit acts as an appraisal of where the administration is in relation to regulative conformity but more significantly can be extended to measure an administrations ability to react to client demands and therefore to enable a competitory advantage.

Audited accounts must be conducted in an unfastened environment and be able to embrace the positions and cognition of all within the administration and should be a accelerator for extremist alteration whilst concentrating on system efficiency.Audited accounts as they mature can hold a generic nucleus which is common to all administrations and sections but be able to take an overview of the administration to work towards continual quality betterment.

Audited accounts and Self Appraisals

“ A major difference between Quality Audit and Self Assessments is reflected in one of the chief rules of auditing, being the hearer independency ( ISO 10011, 1991 ) . Namely, an hearer must be free of any struggle of involvement and be unbiased when doing judgements. ” ( Karapetrovic & A ; Willborn 2001 p.

369 )Audited account should be viewed as a method of continual betterment. With an administration such as NHSBT it is expected by the MHRA that a non-conformance noted in a peculiar blood Centre in June should non be found in the following blood Centre to be audited in September of the same twelvemonth. In consequence the audit procedure is forcing to expose continual betterment and consciousness of the environment that the administration finds itself in. However this is merely one method of betterment and is normally related to a failure of the administration to adhere to criterions and processs and does non ever lead to continual betterment.There appears to be a demand for a double attack to scrutinize. Firstly external audits are necessary to guarantee that the administration is following both legal demands and its ain quality policy. Second and with a joint focal point internal audits or internal ego appraisal needs to concentrate on the same function of patroling against criterions while besides placing countries for continual betterment.

The focal point on continual betterment must include the local employees to guarantee that they are included in the procedure, that their positions are listened to and that they buy in to the overall betterment procedure. The audits have greatest benefit if conducted in existent clip and the hearers must hold acquired a holistic apprehension of quality direction and concern excellence theoretical accounts. In order to cut down costs and to understate duplicate so the audit needs to be standardised so that a generic audit format can be utilised across the whole administration.

Quality audits are the chances to work towards excellence. They are utile in supplying advice from across the administration and besides to integrate new thoughts and aid from outside the administration. They are indispensable to develop invention and a job work outing civilization including all degrees of the administration. This is provided that they besides encourage openness and a spirit of cooperation. They can be used to examine and dispute established processs to develop a best pattern execution civilization.Karapetrovic and Willborn ( 2000 p.

683 ) suggested the undermentioned demands of choice audits: – Quality audits should be unfastened and dynamic. They should function as a method of facilitation to incorporate the full administration to accomplish common strategic ends. The audits should be adaptative and nimble and the standards of quality audits should be improved with clip. Individual audits are harmonised and aligned to the accomplishment of the administrations strategic ends, through uninterrupted betterment of procedures. Karapetrovic and Willborn ( 2000 p.

682 )


Continual betterment is necessary to better the effectivity of the quality direction system and hence the betterment of the administration and its staff. Continual betterment begins with good leading. The leading needs to be proactive and one that encourages employees to acquire involved in the finding of best pattern. Leadership can non be excessively normative ; the leading within the administration needs to be an enabler for staff to work to better quality.Clear and precise communicating is indispensable to any successful execution ( Sarker and Allen, 2003, p. 816 ) .

The communicating procedure should include sharing positive and negative consequences, non merely with the specific squads, but with all staff within the administration. This will let the staff to show any concerns that they may hold. The communicating procedure will necessitate to be a continual procedure and it is imperative that the feedback cringle remains integral.If the strategic program is followed and communicated suitably, so the execution of the discussed public presentation tools should run swimmingly. The badgering concern is that if the scheme alterations and the alterations non communicated to the staff, this will do jobs with the employees, and finally have a important consequence on the execution program.Benchmarking could be an of import portion of the hereafter of the NHSBT.

Equally long as it is aligned with the long term scheme and completed right, it could turn out to be a powerful tool to continuously better the procedures and systems within and finally take to “ best or better ” pattern. The hereafter of any enterprise will lie with how this is incorporated within the administration.The Balanced Scorecard is a powerful tool that will assist the administration implement the strategic purposes. The current spread within the administration is the deficiency of lucidity sing the content of the scheme and the distribution to all staff. The usage of the balanced scorecard will let the strategic purposes to be implemented at operational degrees. The transparence of the scorecard will let staff to visualize the purposes of the administration.

Audited accounts are indispensable to the continual betterment of the administration. The biggest obstruction is how staff perceives scrutinizing. Some see audit as policing and negative alternatively of chances. This could stem from the attitude of the hearer to the auditee, and the nomenclature used for mistakes such as Non-conformance alternatively of countries for betterment.

If audit is to win within the administration, all staff will necessitate to be trained on the benefits of audit and the hereafter benefits that uninterrupted betterment will convey to the administration and the staff working within.Within the current clime, any execution procedure within the NHSBT will be a hard and bootless undertaking, until the administration travel off from a quality confidence and conformity civilization to a civilization of uninterrupted betterment, any enterprises that are implemented will constantly neglect.