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Effects of Balanced Scorecard and Dashboard on Health Organizations and Nursing Practice
As a reaction to the altering healthcare setting, administrators in the hospital are implementing modern management tools such as the balanced scorecard (BSC) in order to improve hospital functioning. The BSC reports take into consideration four different perspectives of similar weight: internal processes, learning and growth, financial performance and customer satisfaction (Schalm, 2008). Indicators are developed from the current data schemes and utilized periodically for quality expansion and successful performance of the hospital. The balanced scorecard implies management and strategic planning system that is utilized extensively in the health care in order to align the hospital’s activities to its strategy and vision and advance external and internal communication. The dashboard, on the other hand, is used for monitoring the organization’s performance against its strategic objectives (Walker, 2010).
Goal Achievements using Balanced Scorecard
The hospital has developed a corporate balanced scorecard to facilitate executive strategic thinking and clarify the main directions of its work. In parallel, the scorecard was developed at a level of care units. It has resulted in some site-specific achievements that include better strategic planning. The balanced scorecard has provided a powerful framework for communicating and building strategy (Norreklit, 2009). The healthcare model is envisaged in the strategy map that prompts managers to contemplate the cause-and-effect link. It has also led to the improved strategy execution and communication. The fact that the plan with its numerous interrelated goals is presented on a single piece of paper allows the organization to communicate it easily externally. In addition, the hospital has achieved better information management. The balanced scorecard perspective forces the organization to structure its performance appropriately in order to achieve its numerous strategicgoals. Furthermore, improved performance reporting is another important achievement. Using the balanced scorecard perspective, the hospital tends to achieve better results than other organizations with no such structured approaches to the performance management. Increasing requirements and needs for accountability emerged when the organization created meaningful management dashboards and reports to communicate the performance results both externally and internally. Moreover, the organization has better strategic alignment, which results from using the balanced scorecard. Better organizational alignment is another essential goal achieved through a well-established balanced scorecard approach. It assist in aligning organizational processes such as budgeting, management, analytics and risk management with strategic priorities (Schalm, 2008).
The External Standard against Which the Scorecard Is Being Compared
The balanced scorecard evolved from its initial use as the simplest performance measurement tool to the comprehensive management and strategic planning system. The balanced scorecard has transformed the organization’s strategic planning considerably. It offers a framework that not merely provides performance measurements and helps planners realize what must be accomplished and measured. It empowers the executives to implement their plans properly (Le Grange & Beets, 2005).
This external approach to the strategic management recognizes the vagueness and weaknesses of the past management perspective. The balanced scorecard approach has concrete suggestions as to what the hospital should measure to achieve financial stability. It also enables the organization to clarify its strategy and vision and put them into practice. It provides continuous feedback about both external outcomes and internal business processes in order to advance the strategic performance and results (Hrebiniak, 2005).
Balanced Scorecard Implementation Limitations
Every system that is man-made has some limitations. Despite the obvious success that has been witnessed in the balanced scorecard in the healthcare organization, there are some limitations that have hindered the full implementation of the program. They include lack of skilled manpower, curative facilities, information technology infrastructure and diagnostic services (Chan, Parco, & Sihombing, 2010). Nevertheless, the healthcare organization is distinctive in the setting of LIC due to its international accreditation, certifications, and state-of-the-art facilities.