Performance Improvement and Management in Health & Social Care Report

This report provides a comprehensive analysis of performance improvement and management within the context of BME Luxury Care Home. It begins with an introduction to performance improvement in health and social care, emphasizing the importance of strategic planning. The main body of the report delves into strategic planning models, comparing the Alignment Model and the Balanced Scorecard Model, and recommending the latter for BME Luxury Care Home. It also includes a detailed financial analysis using the Du Pont analysis, calculating and interpreting relevant ratios such as Net Profit Margin, ROE, and others to assess financial performance. Additionally, the report evaluates the use of non-financial and multidimensional models of performance management. The report concludes by summarizing the key findings and recommendations for improving performance and strategic decision-making within the care home setting. The report also includes the advantages and disadvantages of strategic planning models.

Performance
Improvement
and
Management in
Health & Social
Care

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Task 1.......................................................................................................................................................3
Task 2.......................................................................................................................................................6
Task 3.......................................................................................................................................................8
CONCLUSION.............................................................................................................................................12
REFERENCES..............................................................................................................................................14

INTRODUCTION
Performance Improvement and Management in Health and Social Care refers to the use
of wide range of approaches through which the performance can be appropriately enhanced and
therefore this can be helpful in ensuring that the managers are able to enhance the level of
performance and are able to ensure that the business attains a strategic and competitive edge over
its competitors in the market (Almaaitah and et.al., 2020). This report will focus on BME Luxury
Care Home. The management of the Nursing Home is focusing at viability of investing in a
privately owned and managed nursing home. For this purpose, a proper assessment is required to
be carried out. This will help the management in making a decision effectively and efficiently. In
this report, there will be specific focus on advantages and disadvantages of strategic planning
models and recommendations on choosing a particular model, usefulness of a Du Pont analysis,
calculation and interpretation of the ratios. Additionally, critical evaluation of the use of non-
financial and multidimensional models of performance management will be discussed as a part
of this particular assignment.
MAIN BODY
Task 1
Strategic Planning is a process through which the different types of plans for the Short-
term, Medium-term and Long-term can be created quite effectively and efficiently and therefore
the use of the appropriate strategies can be made so that the attainment of the goals and
objectives in the future can be done in the right manner (Amor and Ghannouchi, 2017).
Therefore, it is quite important that the use of Strategic Planning can be done effectively and
efficiently so that the appropriate conclusions and recommendations can be derived which will
be quite helpful in taking an important decision in the future.
As BME Luxury Care Home is planning to invest in a Nursing Home it has to consider
the strategic viability for the same. It can make use of the following models for this particular
purpose-
Alignment Model for Strategic Planning-
This model is quiet useful for the purpose of Strategic Planning because it can put its
focus on ensuring an alignment between a company’s vision and its resources. This model makes
the use of a step-by-step format (Butler, Szwejczewski and Sweeney, 2018). The use of this type
of approach is helpful for the organizations in ensuring that it is able to assess them before they
are able to take a strategic decision. Using a step-by-step format, this approach involves-
Review of mission statement and company goals- It is quite important for the
organizations that they are able to review the mission statement and company goals. Therefore, it

is necessary for the management of BME Luxury Home to do the same which will help in
ensuring that it can review its own position before it makes a decision regarding the investment
to be made in the Nursing Home.
Analysis of the internal workings of the organization- It is quite crucial that the
internal workings of the organization can be analyzed effectively and efficiently so that the
management is able to take a decision in a right way (Eboreime and et.al., 2019). In it the
consideration is required to be given to something which is working well in the organization and
finding out what needs re-‘alignment’. Therefore, in this way it can be said that the use of the
appropriate methods and techniques can be made for this particular purpose which will be quite
helpful in ensuring that the decisions are taken appropriately in the right manner. Therefore, the
management of BME Luxury Home is required to make sure that they analyze the internal
workings of the organization for identifying whether they have the required financial capacity
which is needed for making an investment in the Nursing Home. It is therefore essential that an
overall analysis regarding it can be made so that the important decisions can be taken effectively
and efficiently.
Determination of a short-term approach- It is important that the determination of a
short-term approach can be carried out. This is required in order to ensure that the elimination or
improvement in weak operations can be done and this mindset can be introduced within the
company (Fanelli, Lanza and Zangrandi, 2017). Thus, for the management of BME Luxury
Home is required to determine this approach which will be helpful in ensuring that the working
pattern in the organization is made better which will be quite helpful in ensuring that the
attainment of the goals and objectives in the future can be made so that the overall level of
efficiency and effectiveness is obtained in the right manner.
There are various advantages of making the use of this model. An explanation of these
advantages is provided as follows-
 Project Success Rates- The use of Alignment Model can be highly helpful in ensuring
that the Project which has been initiated can be successful. This will be highly helpful for
the management of the organization (Goitein, 2020).
 Focus on Value Creation- Using Alignment Model is helpful in Focusing on Value
Creation. This is helpful for the organization’s managers in ensuring that the appropriate
value is created for the products and services (Kanehanadevi and et.al., 2020).
However, there are also certain disadvantages of making the use of this model. An
explanation of these disadvantages is provided as follows-
 Its use is not possible in certain cases- The use of Alignment Model cannot be made in
certain cases when the Business Strategy is unknown or in process. Therefore, in these
types of cases it is not recommendable to use this model (Kite, 2018).
 Cannot work in dynamic business environment- The Alignment Model cannot work in
a dynamic business environment which is ever-changing in nature because here the

businesses are required to ensure that the dynamic needs and requirements of the
businesses can be considered which will be quite helpful for them in attaining their
business goals and objectives in the future.
Balanced Scorecard Model-
It is a strategic performance measurement model which has an objective of
converting an organization’s mission and vision into actual actions (Marudaipillai and et.al.,
2020). Therefore this particular model has to be used by the organizations in order to ensure that
they are able to increase their internal efficiency and effectiveness in such a manner which will
be quite helpful in leading towards the attainment of the short-term, medium-term and long-term
goals and objectives in a right manner properly. For the management of BME Nursing Home, it
is recommended that the use of this particular model can be made so that it is able to take a
decision regarding the investment to be made there. There are different perspectives which are a
part of this model. A detailed explanation about these perspectives can be made in the following
manner-
Financial perspective- This is the most important perspective to be considered. It relates
with making a thorough assessment of the overall financial situation of the organization through
the use of different types of financial data, facts and figures. This can be helpful in ensuring that
the conclusions and recommendations which are useful can be derived.
Customer perspective- This is another important perspective which is required to be
considered (McCarthy and et.al., 2016). It is related with identifying the various types of needs
and requirements of the customers and ensuring that they can be fulfilled. This will be very
helpful in ensuring that the overall satisfaction level of the customers can be enhanced and thus
can give positive reviews about the organization. For the management of the organizations this
can be quite useful in ensuring that it is able to increase the customer satisfaction level which
will help in receiving positive reviews.
Internal Business Processes- In this perspective, it is quite important that the assessment
of the internal business processes can be made which will be helpful in ensuring that the
identification of the deviations and variations can be made and appropriate rectifying actions can
be taken immediately so that the improvements can be done in a proper manner (McDermott and
et.al., 2019).
Learning and Growth- In this perspective, the focus has to be made on ensuring the
Learning and Growth within the organization. This is especially helpful in ensuring that the
overall development is always carried out in the organizations and thus the attainment of the
goals and objectives in the future can be done. It is quite essential to ensure this in the
organization because in a dynamic business environment it is very important that the
organizations are able to assess the way in which changes are required to be made and

implemented within the organizational processes so that the adjustments with the needs and
requirements of the dynamic business environment can be made. In this way, the management
will be able to ensure that the future development can be carried out in a right way in the firms.
Advantages-
 Provides a structure- The use of Balanced Scorecard model is helpful in ensuring that
an appropriate structure to the strategy can be provided which can lead towards better
implementation of the strategy.
 Easier communication- With the use of a Balanced Scorecard model the communication
between the various departments of the organization can be carried out in a proper way
which will be helpful in ensuring that the communication can be done in an appropriate
manner effectively and efficiently.
Disadvantages-
 Lack of risk analysis- Balanced Scorecard model does not includes risk analysis which
is quite important because the assessment of the various types of risks can be done
effectively and efficiently in a proper manner.
 Lack of time dimension- The use of Balanced Scorecard model does not makes the use
of time dimension which therefore creates an impact on the organization. This is so
because the performance measurement is not done in an appropriate manner due to this.
Recommendations- It is recommended to the management of BME Nursing Home that
they can make the use of Balanced Scorecard model for the purpose of Strategic
Planning. This is so because through the use of this particular model it is expected that
the attainment of the strategic goals and objectives in the short-term, medium-term and
long-term can be carried out in a proper manner. Therefore, in this way it can be said that
the organization will be able to ensure that it makes use of this particular model in a
proper manner so that it is able to maintain the desired level of efficiency and
effectiveness in the future. In this way the management of BME Nursing Home will be
able to ensure that the strategic attainment of the goals and objectives can be done right
way in the future for attaining the desired level of strategic advantage over the
competitors in the market.
Task 2

Du Pont Analysis
Net Profit Margin Total Asset Turnover Equity Multiplier ROE
57881/3269404= 0.0177 3269404/2502992= 1.306 2502992/357842= 6.99 0.161
Ratio Analysis
Return on Assets 57881/2502992= 0.023
Current Ratio 608992/445150= 1.36
Days Cash on Hand 105737/7644=13.83
ACP 215600/3269404 * 365= 24 Days
Debt Ratio 1700000/2502992= 0.679
Debt Equity Ratio 1700000/357842= 4.75
Fixed Assets Turnover Ratio 3269404/1894000= 1.72
Du Pont Analysis is an analysis through which the assessment of the drivers of ROE i.e.
Return on Equity are assessed effectively and efficiently. Therefore, it is quite useful for the
shareholders because through its assessment they are able to assess the ROE of a company in a
proper manner (Panwar and et.al., 2018). Therefore, this can help the company to be able to
present its good financial position in front of the shareholders which will thus help it a lot in
ensuring that the shareholders invest a good amount of money in the company. It is useful for
BME Luxury Care Home because through its use it can the ROE. It is the rate at which the
shareholders get the return on the money invested by them within a particular organization. The
interpretation of the Du Pont Analysis of BME Luxury Care Home is as follows-
Total Margin- The Total Margin of the Company is 0.0177. This is much lower than the
Industry Average of 3.5%. Therefore, it can be said that the company has to make improvements
in order to enhance it. It is useful because it can help in finding out the overall margin at which
the organization is operating.
Total Assets Turnover- The Total Assets Turnover of the Company is 1.306. This is
lower than the Industry Average of 15. Therefore, the Company has to make specific
improvements so that this particular ratio can be used in a better way. It is useful in finding out
the way in the Total Assets are being use to generate revenue.
Equity Multiplier- The Equity Multiplier of the Company is 6.99. This is higher than the
Industry Average of 2.5. Therefore, it can be said that the Company is progressing in a right way.
It is used to find out the amount of assets financed by using Shareholder’ equity.
ROE- The ROE of the Company is 0.161. This is lower than the Industry Average of
13.1%. Therefore, it can be said that the company is required to make specific improvements in

this way so that the ROE can be increased. It is helpful in finding out the rate at which the
company is offering returns to the shareholders.
Ratio Analysis is a technique through which the overall assessment of the various types
of ratios can be made effectively and efficiently so that the financial performance of the
company can be analyzed and interpreted (Patrucco, Luzzini and Ronchi, 2016). The
interpretation of the Ratios of BME Luxury Care Home can be done as follows-
ROA- The ROA of the company is 0.023. The Industry Average is 5.2%. Therefore the
ratio of the company is on the lower side which indicates that the improvement has to be made.
Thus this means that the company’s performance is not up to the standards as the Return on
Assets is not being generated sufficiently.
Current Ratio- The Current Ratio of the company is 1.36. The Industry Average is 2.0.
Therefore it can be said that the ratio of the company is on the lower side which indicates that the
improvement has to be made. This means that the company’s financial position is not up to the
required standard because the Current Assets should be twice of Current Liabilities.
Days Cash on Hand- Days Cash on Hand of the company is 13.83. The Industry
Average is 22 days. This means that the company is doing good because the cash is able to
sustain for a longer period of time here.
Average Collection Period- The ACP of the company is 24 days. The Industry Average
is 19 days. This indicates that the company has to make improvement here. This means that the
company needs to reduce it because it takes a longer time to collect its debts.
Debt Ratio- The Debt Ratio of the company is 0.679. The Industry Average is 69%. This
indicates that the company takes lower debt as compared to other companies in the industry.
DER- The DER of the company is 4.75. The Industry Average is 2.5%. This means that
the DER of the company is on a higher side than the Industry Average and the company has to
make efforts to reduce it. This means that the organization has a higher percentage of debt as
compared to equity and therefore there is a need to reduce it.
Fixed Assets Turnover Ratio- The Fixed Assets Turnover Ratio of the company is 1.72.
The Industry Average is 1.4. This means that the Fixed Assets Turnover Ratio of the company is
on the higher side and thus this indicates that the performance of the company is quite good. The
company is generating sufficient amount of returns on its Fixed Assets in terms of sales.
Task 3
Performance management is the continuous process which used by organization to identify
the needs and developing the business performance by providing products and services. For

organization it is important that to know what their customers wants and how they can be
satisfied so that business can be develop accordingly. Performance management is the set of
activities and outputs for meeting the organization goals in effective manner. In business
environment there are number of tools and techniques which uses by management to analysis the
performance and bring the changes so that productivity can be develop. The aim of organization
is to attracts the large number of customers and retain their employees by motivation that
supports to attain the business goals. To analysing the performance KPI (Key performance
indicator) is a tool that states financial and non-financial activity of a company and decision are
made accordingly. This can help to increase the business performance and productivity in
changing environment and supports to attain business goals (He and et.al., 2019).
In context to BME Luxury care Home, management is playing important role as it uses the
KPI tool to know the non-financial activity and bringing the changes for the purpose of
improving business profitability. The management understand the requirement and provides the
products accordingly to make the effective business decisions. The performance Pyramid is uses
by chosen organisation that is explained below:
Performance Pyramid – This is a concept which is connected to business strategy that
links to day to day operations. Performance pyramid comes from the idea which is operating by
an organization at different level for the purpose of identifying task and competing on time. This
believes that traditional performance management being used to increase the financial
performance and operating the business regularly that can help to complete the task and
managing higher productivity. For example, the finance management of BMW Luxury care
organization decided the goals and prepare the budget for different functions and activities. After
preparing budget funds are allocated accordingly which supports to increase the business
performance. Different changes and technology is introduced in order to bringing challenges and
increasing the profitability ratio (Li, Xiong, An and Wang, 2018).

From the above Performance Pyramid it can be explained that on the top of this structure
corporate vision or goals is decided by business owner that relates to long term for the purpose
increasing performance and market share by 70% within the year 2025. This is the first stage
which used by business concern to set the long term visison by understanding the situation of
their business.
The level second is related to acheivement of an organization’s CFS in terms of market
related measures and financial measures. This involves market and financial proposal of business
that needs to complete on time. In relation to BMW Luxury, this stage is used to working on
marketing and financial activities that can help to achieve the corporate goals and objectives
effectively (Rosca and Bendul, 2019).
The third level is related to marketing and finacial stratgies which are decided at the 2nd
level and linked to achieving the customer satisfaction. This increase the flexibility and high
productivity at next level. This can be explained as guiding forces that drive strategic objectives.
In relation to BMW Luxury company, management links tehir strategies with marketing and
financial activity where it allocate the funds in different activity and maintaining higher
performance. This can help to provide the customer relationship, satisfaction, flexibilityand

higher productivity in the changing environment and supports to attain the business goals in
certain period by operating day to day activities.
The Forth level is related to quality, delivery, cycle time and waste in different
department that exists in the iorganization which can help to develop the business performance.
In relation to chosen organization management is focusing on all activities and providing the
better quality of services, maintaining good delivery and reducing the wastages that cvan help to
accomplish the organizational goals by influencing number of customers and attaining higher
productivity.
From the above it can be explained that BMW Luxury is developing the business goals
by following the marketing and financial strategies which can help to develop the business
productivity and profitability effectively.
Performance Pyramid can help BME Luxury Care Home in determining its performance
level because it will be able to judge the overall performance of employees of the organization.
Also the comparisons can be done by making its use to identify the deviations and variations so
that the use of an appropraite approach can be made to remove these deviations and variations.
There are differnet types of advnatages and disadvantages of making the use of
Performance Pyramid. Their explanation has been made in the following manner-
Advantages-
 Helps in Peformance Assessment- The use of a Performance Pyramid can be quite
helpful in ensuring that the Performance Assessment can be carried out in the right
manner which can be quite useful in leading towards the measurement of the overall
level of performance and bringing the required improvements if required. For the
management of BMW Luxury Home it is quite crucial so that the deviations and
variations in the overall level of performance can be identified and thus the rectification
methods can be used which will be helpful in ensuring that the attainment of the optimum
level of performance can be done.
 Attainment of the goals and objectives- Using Performance Pyramid can be helpful in
ensuring that the attainment of the goals and objectives in the future can be done. For this
purpose, it is quite essential that the management of BMW Luxury Home are able to set
up the goals and objectives to be attained in the future and make use of the appropriate
strategies and methods so that these goals and objectives can be achieved effectively and
efficiently. This will be quite helpful in ensuring that the improvement in the future
performance can be done.
 Helps in motivating the employees- The use of Performance Pyramid can be quite
helpful in ensuring that the overall level of motivation of the employees can be enhanced
which will help them in concentrating in a better manner on their tasks. Thus, In the
context of BMW Luxury Home it is quie essential to make its use for ensuring that the

enhancement in the overall level of performance can be carried out and thus the different
types of improvements can be done as per the needs and requirements.
 Assessment of the internal situation- Using Performance Pyramid is essenital in
ensuring that the overall assessment of the internal situation can be carried out in a better
manner (Tassabehji, Mishra and Dominguez-Péry, 2019). Therefore, In this way it can be
said that through its use the internal situation which is prevailing in the organization can
be improved which will be quite helpful for the companies. BME Luxury Care Home is
required to make sure that it makes its use so that the assessment of the internal situation
is done and the required improvements can be made quite effectively and efficiently.
Disadvantages of Performance Pyramid-
 Not reliable like Balanced Scorecard- The use of Performance Pyramid is not reliable
like the Balanced Scorecard. Therefore, it can be said that this method is low in
usefulness when compared to Balanced Scorecard. Therefore this can create an impact on
BME Luxury Care Home when it is making its use to assess the overall level of
performance.
 Low accuracy of the parameters- Using Performance Pyramid involves setting up of
the various types of parameters through which the assessment of the overall level of
performance is required to be carried out. In the context of BME Luxury Care Home it
can be said that these parameters are not very accuarte which creates a lot of problems
and difficulties in measuring the level of performance.
 Complexity- The use of Performance Pyramid is quite complex in nature and therefore
involves a lot of complexities. Thus, it can be said that for BME Luxury Care Home it
can result in different types of compleixities and thus this will create an impact on the
overall level of performance within the organization.
 Narrow in scope- Performance Pyramid is quite narrow in scope which thereby can
create an overall level of impact on the assessment of the overall level of performane of
the organizations. For BME Luxury Care Home, it can be said that it can result in
creation of problems and difficulties in the measurement of performance.
Importance of Performance Pyramid- The importance of Performance Pyramid is
explained as follows-
 Increase in efficiency- With the use of Performance Pyramid there can be an increase in
the overall level of efficiency of the differnet types of employees who are working within
the organization (Saunders and et.al., 2016). This can lead towards ensuring that the
management of the work can be done in a proper manner which will be quite helpful for
the company in the future. In this way it can be useful for an organization like BME
Luxury Care Home.
 Increase in effectiveness- The use of Performance Pyramid is qutie helpful in ensuring
that there can be an increase in the overall level of effectiveness (Smith, Orlando and
Berta, 2018). Therefore, In this way it can be said that by making its use the
improvements in the organization can be brought which can be helpful in taking the right