Essay on Purpose Of The Balanced Scorecard

Essay on Purpose Of The Balanced Scorecard

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Purpose Statement
According to 2GC Active Management (2014), the purpose of the Balanced Scorecard (BSC) is to help organizations:
• “Provide reliable information to reassure leadership teams that their strategic plans are being implemented efficiently and effectively and are having the impact they expect;
• Enable improved alignment behind strategic goals across the whole organization;
• Instill greater clarity and consensus within management teams concerning their shared goals and priorities, and to provide them with unambiguous feedback on their progress in achieving them;
• Strengthen existing management processes, making them more focused on achieving and maintaining performance improvements;
• Provide a better and wider understanding of the role and contribution of shared services within the overall strategic context;
• Provide a more reliable basis for the awarding of incentive-based pay.”
Since the BSC is a generic tool that can be used by any healthcare organization (HCO), it may need to be modified to be suitable for the organization’s needs. The BSC can be used by HCOs to bring a level of transparency to the community by showing them how they are meeting their needs to deliver and provide better care, and conduct innovative research (Sunnybrook, 2016).
Literature Review
The article reviewed for this assignment was “The Practice of the Balanced Scorecard in Healthcare Services” by Beata Kollberg and Mattias Elg. This article is a literature review of three case studies performed from 2002-2004, which reviews how three Swedish health care organizations utilized the BSC technique. Specifically, the paper “[identified] the main characteristics of the BSC practice in health care services,” by asking the question “how are pu...

... middle of paper ...

...evel process and employee measures were primarily focused on.
The findings of this literature review were to emphasize how HCOs utilized the BSC as a tool for “improving internal capabilities and supporting organizational development” (Kollberg & Elg, 2011). For example, unit level employees utilized the BSC to focus on the process perspective in the form of quality medical practices, clinical administrators focused on financial and patient processes while the upper-level executives focused on using BSC as a tool to understand the HCO as a whole. Rather than traditionally focusing on financial and production means, HCOs use the BSC to facilitate discussion, information transfer, knowledge creation, and review and reporting. However, the increased communication dialog, created because of the BSC, results in an increased responsibility and demand for managerial staff.

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