Balance Scorecard Applications in Healthcare Organizations Balanced Scorecard

The Learning & Growth Perspective

The Business Process Perspective

The Financial Perspective

Strategy Mapping

General Perspective of Performance Management

Performance Planning

Ongoing Performance Feedback

Employee Input

Performance Evaluation & Review

Performance Management in Healthcare Organizations

Healthcare Organization as Learning Organization

Principles of Performance Management in Healthcare Organizations

Performance Measurement & Evaluation

Methods Used In Healthcare Organizations

Setting Up Performance Management Systems

Dimensions and Approaches to Performance Management in Health Care Taken From the British National Health Service

Induction Programs

Performance Monitoring

Personal Performance Planning

Balanced Scorecard in Healthcare Organization

Evolution of BSC

BSC in Healthcare

Applied Perspectives

Research Related To Internal Processes

Indicators (Measures)

Application of Balanced Scorecard in Healthcare

Rationale for Using Balanced Scorecard in National Healthcare

Conclusion

References

Executive Summary

Balanced Scorecard is an effective performance management tool which has gained importance over last two decades. Where management theories have gained substantial importance in organizational management, Balanced Scorecards are no less. This performance measurement model has proved to provide substantial efficiency and effectiveness because of its focus on future targets or long-term performance in relation with current processes. Hence, the idea is to improve present practices along with a mechanism of check and balance which keeps the current performance aligned to the objectives. There are various perspectives which allow its users to evaluate the effectiveness of this model. The balanced scorecards provides an integrated view from four different dimensions as it suggests development of the metrics, collection of data and individual analysis of these perspectives.

Generally speaking performance management in usual organizations takes place through different methodologies. There are various management theories available which facilitate the implementation of strategic goals, along with planning and control mechanisms. Management theories related to performance management have enabled today's enterprises to identify performance management practices best suited for them, however most of these practices have a basic structure comprising of several stages. Through research, we have further concluded that there are various distinct characteristics which are required for en effective and efficient performance management system. Formation of a performance management system is dependent on the outcomes of many decisions that are required to be taken in preliminary phase. These decisions may include that purpose of this system (such as support for pay and promotion decisions, employee training, layoffs etc.)

In today's healthcare mode, the taskforce model is rather common. Many taskforces and quality improvement and assurance teams are set in places which are responsible for initiating and managing in change in the respective domains. Where these task forces have their merits and demerits, very little research has been done regarding their actual effectiveness. In order to have an effective organizational model in healthcare, the precise output of these taskforce is necessary to be known since building up organizational strengths and eliminating weaknesses is only possible after knowing the exact outputs

As far as healthcare organizations are concerned, there are no confirmed models of performance management systems. Many healthcare organizations have been evolving over time as learning organization and the basic rationale for doing so is the enhancement of performance and quality of organizational services. Since the public sector healthcare organizations face very limited scope of profit generation, therefore the basic incentive is already missing. However, the performance management system existing in today's healthcare organizations comprises of the simplest forms. This includes a concrete and defined mission and objectives along with effective communications to employees who are stakeholders to the organization and are aware of business objectives and other strategic plans.

Balanced Scorecard is a relatively new concept in healthcare sector. Where healthcare organizations are showing adaptation to modern management tools, special inclinations has been shown to BSC as well. In developed countries, BSC has been widely accepted however the responses regarding the overall effectiveness of this method have been mixed. There have been several studies conducted which have evaluated the impacts of BSC in healthcare organizations practicing in different parts of the world such as Canada and Afghanistan. The outcomes of these researches varied greatly and hence, presented difficulty in reaching a conclusion which could be levied equally on all the healthcare organizations. All of these studies, however, did lead to a singular conclusion that BSC is a time taking process which requires thorough planning and attention given to all the relevant domains.

Given that many healthcare organizations...

It is important to understand that where many other national departments have adopted this model, implanting it in National healthcare departments is highly complicated but provided its benefits and the factors conducive to its implementations, this initiative can be taken.
Introduction

Management sciences have progressed greatly in the past few decades. In the 20th century, many great management theories have emerged which have been proven highly effective in overall organizational management. One of these theories is Balanced Scorecard approach (Kaplan & Norton, 1996). This approach was presented by Kaplan and Norton in early 90s and since then this concept has shown evolution to a great extent. BSC tool is highly effective in managing businesses and organizational practices since it helps in evaluating the business from various dimensions. All across the globe, there are many institutions and organizations of industrialized and non-profit nature which have adopted this approach for business management. Out of these organizations one of the most eminent organizations setup is healthcare settings. The benefits and the extensive approach that it can offer not only have a tendency of affecting the strategic operations of single healthcare organization but it may also prove helpful in managing the affairs of ministry of health as well.

Balanced Scorecard has proved to provide substantial efficiency and effectiveness because of its focus on future targets or long-term performance in relation with current processes. Hence, the idea is to improve present practices along with a mechanism of check and balance which keeps the current performance aligned to the objectives (Kaplan & Norton, 2001). There are various perspectives which allow its users to evaluate the effectiveness of this model. These perspectives include learning and growth, financials, customers and business processes. Along with that, the whole model is integrated by strategy mapping tools which allow one perspective to link to other (Kaplan & Norton, 2001).

Generally speaking performance management in usual organizations takes place through different methodologies. There are various management theories available which facilitate the implementation of strategic goals, along with planning and control mechanisms. Management theories related to performance management have enabled today's enterprises to identify performance management practices best suited for them, however most of these practices have a basic structure comprising of several stages (Curtright et al., 2000). There are various approached available through which the organizational performance management can take place. In healthcare settings, taskforce models are highly common. These taskforce can be considered as an evolutes form of total quality managers. Where these task forces have their merits and demerits, very little research has been done regarding their actual effectiveness. In order to have an effective organizational model in healthcare, the precise output of these taskforce is necessary to be known since building up organizational strengths and eliminating weaknesses is only possible after knowing the exact outputs (McCoy and Hargie, 2001).

Where healthcare organizations are concerned have no confirmed models of performance management systems., m any o f them have been evolving over time as learning organization and the basic rationale for doing so is the enhancement of performance and quality of organizational services (Walburg, 2006). Since the public sector healthcare organizations face very limited scope of profit generation, therefore the basic incentive is already missing. However, the performance management system existing in today's healthcare organizations comprises of the simplest forms. This includes a concrete and defined mission and objectives along with effective communications to employees who are stakeholders to the organization and are aware of business objectives and other strategic plans.

As far as balanced scorecard approach is concerned, there are various examples available which facilitate the notion that it is effective in healthcare sector as well despite its extensive nature. The purpose of this research is to determine whether BSC approach is effective in healthcare organizations and if yes, does it suit the model of healthcare ministry (Banchieri et al., 2000). For this purpose, the actual model of BSC will be analyzed in the horizon of general organizations and healthcare organizations along with analysis of general performance management practices already prevailing in healthcare. Furthermore, it will be analyzed if it is suitable for ministry of health.

Balanced Scorecard

Balanced Scorecard is an effective performance management tool which has gained importance over last two decades. Where management theories have gained substantial importance in organizational management, Balanced Scorecards are no less. This performance measurement model has proved to provide substantial efficiency and effectiveness because of its focus on future targets or long-term performance in relation with current processes. Hence, the idea is to improve present practices along with a mechanism of check and balance which keeps the current performance aligned to the objectives (Kaplan & Norton, 2001).

The whole mechanism is used as a strategic planning and management system which is used globally many businesses and all kind…