The Balanced Scorecard is a performance measurement system that was developed in the early 1990s by Drs. Robert Kaplan and David Norton. It is a strategic planning and management system that is used to align business activities to the vision and strategy of an organization. It is based on the premise that an organization should be measured and managed on a balanced set of financial and non-financial performance metrics.
One example of the use of the Balanced Scorecard in the healthcare industry is at a hospital in the United States. This hospital implemented the Balanced Scorecard to align its performance with its mission of providing high quality patient care.
The hospital developed four perspectives for its Balanced Scorecard: patient care, financial, internal processes, and learning and growth. Each perspective had a set of related objectives and measures.
For the patient care perspective, the hospital focused on improving patient satisfaction and clinical outcomes. To measure these objectives, the hospital collected data on patient satisfaction surveys and clinical performance indicators such as the rate of hospital-acquired infections and readmission rates.
The financial perspective focused on financial sustainability and cost-effectiveness. To measure these objectives, the hospital tracked metrics such as revenue, expenses, and net income.
The internal processes perspective aimed to improve the efficiency and effectiveness of the hospital's operations. To measure these objectives, the hospital collected data on turnaround times for test results and the number of errors in medical records.
Finally, the learning and growth perspective focused on developing the hospital's workforce and improving the hospital's systems and processes. To measure these objectives, the hospital tracked data on employee training and development and the implementation of new technologies and processes.
By tracking and analyzing data on these performance metrics, the hospital was able to identify areas for improvement and implement strategies to address any issues. As a result, the hospital was able to improve patient satisfaction, clinical outcomes, financial performance, and operational efficiency.
In conclusion, the Balanced Scorecard is a useful tool for healthcare organizations to align their performance with their mission and vision. It allows them to track and analyze a range of financial and non-financial performance metrics and make data-driven decisions to improve their operations and outcomes.
Balanced Scorecard Examples and Templates
BSC has helped sharpen the focus and better align the day to day activities with longer strategies. Since its appearance, BSC has showed excellent vitality Hitchins et al, 2001. Our nursing and healthcare experts are ready and waiting to assist with any writing project you may have, from simple essay plans, through to full nursing dissertations. Specific goals should also include in-depth details about what exactly your nonprofit is hoping to achieve, why, and how the goal will help to obtain your mission. Care within this model will become more patient-centric, less expensive to provide, and more innovative. Initially, the titles and abstracts of the studies were examined to eliminate irrelevant studies.
How is a balanced scorecard used in healthcare? [Expert Guide!]
The financial perspective investigates aspects such as revenue sales , profit, operating costs, asset turnover, liquidity, expenditures, and ratios such as return-on-equity ROE. Patients are sharing that they want advice on weight management and diet therapies PwC Health Research Institute, 2016 for example leading to increased focus on these services within the industry. Nonetheless, this will rely on the enhancement of technologies of information security, in order for the healthcare organization to progress in innovative financial products and improve their core competitiveness. Big data can lead to big problems for healthcare organizations, many of which struggle with data overload. . For more information on BSC software, see this All companies begin with a vision. Higher education institutions typically emphasize student and faculty concerns in an attempt to improve the learning experience, which is a primary performance measure.
Balanced Scorecard Templates
By applying it in all the above scenarios, you create a strategy-focused organization that is well-positioned to achieve its stated objectives. On the other hand, an increase in revenues types included; returns, profits, aggregate surplus, funds, the value of drug-related groups, and return on assets. Organizations then can describe what they need to look like given those future assumptions, and then design a strategy to help them bridge the gap between where they are today and achieving that future success. You can work with templates, pre-implemented performance management software modules, or standalone BSC tracking and development programs. Quality assessment The Risk of Bias RoB assessment was performed by the first and second authors independently between March and June 2021 to assess the quality of the included studies.
