An Analytic Hierarchy Framework for Evaluating Balanced Scorecards of Healthcare Organizations

Abstract

Healthcare organizations have been operating in a turbulent environment for years. Pressures from the government and competition U S well as escalating costs have driven administrators to search for effective management tools. Balanced scorecard (BSC), a strategic munagement system, has been implemented in business organizations with success and is gaining acceptance in the not-for-profit and healthcare sectors. Despite potential benefits, there are challenges for implementers of BSC such as judgment biases, information overload, and the synthesis of information. This paper proposes to apply the analytic hierarchy process (AHP) to hospital scorecards in performance ussessment. Although AHP could be a time-consuming exercise, it allows participative input in determining a comprehensive measure for comparing performance of healthcare organizations.JEL classifications: M41, M49

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Developing strategic measurement and improvement for the biopharmaceutical firm: Using the BSC hierarchy

“…First devised by Kaplan and Norton in 1992, the balanced scorecard approach consists of four perspectives: learning and growth perspective, internal process perspective, customer perspective, and financial perspective (Kaplan & Norton, 1993, 1996a, 1996b, 1996c, 2001a, 2001b, 2001c, 2001d, 2004a, 2004b, 2004c, 2004d, 2006. BSC is a strategic approach and performance management system which organizations can use for vision and strategy implementation.…”

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