Balanced Scorecard System In Healthcare

887 Words 4 Pages
Healthcare with the Balanced Scorecard Method Strategic planning is defined as, “a decision making activity that identifies where an organization is going, sets its direction, and focuses its future efforts” (Olden, 2014, p.36). Planning is important to any healthcare system, because without planning and preparation your system may become unorganized. A case where a type of strategic planning is efficient in health care systems could be the balanced scoreboard method (BSC). The balanced scoreboard method can be defined as a customized performance measurement system that goes beyond conventional accounting and is based on organizational strategy (Voelker, Rakich, and French, 2001). Voelker et al. (2001) plan is to convert an organization’s vision and strategy into a comprehensive set of linked performance and actions that provide successful strategic management. They plan execute this by finding a balance between financial, operating and other measures and provide performance indicators linking strategy to specific actions (Voelker et al). The balanced scoreboard can be measured across 4 perspectives for organizational performance; financial, customer, internal, and growth perspective. The financial perspective relates to healthcare by looking at stakeholders and finding out what financial condition must the organization achieve to reach their mission. Customer perspective relates …show more content…
One reason may be, “the pressures of operating in a dynamic environment often lead to ignoring factors that are critically important to organizational success” (Voelker et al p. 20). In healthcare having ignoring factors that are essential to the success of organization could be detrimental. There are many healthcare organizations that currently use the balanced scoreboard method in the United States as well as outside the country. One example of these organizations is Duke Children’s Hospital in Durham,

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