THE POSSIBILITY OF BALANCED SCORECARD IMPLEMENTATION IN HEALTHCARE NON-PROFIT ORGA NIZATIONSSlađana R. Stević, Teodor M. Petrović |
Published 2017 |
ABSTRACT
Balanced Scorecard (BSC) is a contemporary approach to measuring and managing the performances of strategically oriented organizations, which balances between financial and non-financial indicators, internal and external environment, short-term actions and set strategy. Achieving this balance can be seen through four different perspectives, that have their own benchmarks and objectives and are interconnected with the main strategy. Theorists and practitioners are increasingly asking themselves about the performances of healthcare systems and how effective the healthcare organizations are. They tried to apply some of the tools and methods available for measuring and improving governance in certain areas of healthcare, and the BSC is one of them. While the BSC is a model quickly acquired from profit organizations, it is slowly accepted in the non-profit sector (NPS), and one of the reasons is that the NPO significantly rely on non-financial statistics, which they believe can substitute the BSC model. Non-profit healthcare organizations consider that financial metrics are insufficient for measuring and managing performances and that the usage of non-financial indicators is essential. This paper examines the possibility of BSC implementation in healthcare NPOs. The research on the existing system of measurement was performed by means of interviewing employees in a healthcare institution. Four model perspectives are rated: from a user’s perspective, internal processes, employee development and finance, as well as the possibility of implementation in a medical institution. According to the opinion of two thirds of interviewees, there is a possibility of implementing the BSC with the available resources and the multidimensional performance measurement in this healthcare institution, with an emphasis on the user’s and financial perspective. A critical issue in the BSC implementation in non- profit healthcare organizations is connecting strategic objectives and systems of benefits and incentives.
Keywords: Balanced Scorecard, healthcare non-profit organizations.