Healthcare Performance Management (PM)
As same as other organisation, Strategy at a healthcare organisation is initiated at top level but the implementation feeding is started at the bottom level. Performance management (PM) is a management tool that has been recently, applied at various organisations including healthcare sector. Fundamentally, its focus is to ensure effective strategy execution by looking at strategy as the object of value conception and therefore, coordinating all efforts, processes, resources, reports, along with staff commitment towards achieving the strategy.
The first stage of developing PM system in healthcare organisation is selecting and developing the conceptual framework. One of the well-known performance management frameworks is the Balanced Scorecard (BSC). it uses financial indicators, tracking the past performance, along with non-financial indicators, driving the future financial performance such as indicators for customer, internal business processes, learning and growth, are required for reporting long-term organisation performance (Kaplan and Norton, 1992).
the framework should contain distinct and multi-dimensional perspectives that are used for tracking organisation performance at all areas and perspective selection and design should be in accordance with the organisation strategy (DeBusk et al., 2003). At each perspective, a number of strategic direction or goals are demonstrated in a suitable format. Goals should be brief, directly express the strategy, and cover long period such as 3 years. Building strategy network or map suggested by (Kaplan and Norton, 2001), is used by many organisations for illustrating, communicating, and mapping the cause and effect of organisation goals (Ahn, 2001, Quezada et al., 2009).
In healthcare organisations, BSC can be easily adopted by adding a population health perspective that contains ultimate outcome indicators while indicators of other perspectives such as patient experience and quality indicators are contributing to them. In non-profit healthcare facilities, the focus of financial perspective is on the expenditure and maximising the value for money.
In order to develop a conceptual performance framework for Dutch health system, balanced scorecard has been selected with four perspectives; consumer, financial, internal business processes, and innovation perspectives (Ten Asbroek et al., 2004). Then, the developed conceptual model has been integrated with a population health model with information such as health environment factors and life styles to clarify the relationship between them. In another study, twenty-two BSC applications at different countries in non-profit healthcare organisations including hospital department, national healthcare, and local government have been reviewed in order to analysis the use and design of BSC as strategic performance system (Gurd and Gao, 2008). The study shows that different BSC designs have been used but generally, the...