Implementation of Balanced Scorecard in a Health care Organization Dr.C.Arumugasamy 2011HSMV027

About the Company Multi-specialty hospital located in kolathur, chennai Private limited company 35 beds, 50 visiting consultants, 10 resident medical officers 24 hour trauma care centre

Industry Profile – Porter’s Five Forces Model

SWOT Analysis Strengths Prime Location Insurance Network Trauma care Early entrant Weaknesses X-Ray Technology not up-to-date Laminor air flow not available in OT Poor documentation Opportunities Upcoming area Consultants availability Threats Poor Marketing Corporate entry SWOT

Balanced Scorecard Tool that translates an organization's mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic management system. Results in a carefully selected set of measures linked to an organization’s core strategies. The measures selected for the scorecard represent a tool for leaders to use in communicating to employees and external stakeholders.

Literature Review Kaplan R S and Norton D P (1992) “The balanced scorecard: measures that drive performance”, Harvard Business Review Jan/Feb 1992 Kaplan, Robert and David Norton (1997), “Why Does Business Need A Balanced Scorecard”, Journal of Cost Management, May/June 1997

Problem Definition Absence of performance measurement scorecard in the organization Absence of business intelligence structure that encompasses business goals and key performance indicators Absence of a functional document

Data Collection Financial Perspective Customer Perspective Monthly Revenue – Obtained from the chief accountant. Data was collected from Janaury 2013 till June 2014. Also, number of in-patient data was collected from Manager – Operations. It was studied that revenue was directly proportional to number of in-patients who underwent surgery in the respective period. Customer Perspective Data pertaining to number of patients were identified from the hospital medical records obtained from the Manager – Operations. Innovation/ Learning Interview conducted with the Director of the organization regarding training sessions held. Internal Business Process Interview conducted with the Director of the organization

Performance Measure Identification SMART criteria. Specific purpose for the business Measurable to really get a value Achievable Relevant to the success of the organization Time based

Financial Perspective Performance Measure Target Actual Initiatives Cycle Time 40 minutes 52 minutes Provide adequate training for the front-end staff Response Time 2 minutes 5 minutes

Customer Perspective Performance Measure Target Actual Initiatives Market Share 25% 15% Infrastructure Development Customer Retention 70% 50%

Process Perspective Performance Measure Target Actual Initiatives Cycle Time 40 minutes 52 minutes Provide adequate training for the front-end staff Response Time 2 minutes 5 minutes

Learning and Growth Perspective Performance Measure Target Actual Initiatives Innovation (number of initiative per half year) 1 Productization initiatives to be taken. Information Availability 100% 50% Documentation Conduct regular induction and training programmes

Conclusion Conclusion Future Enhancements The working environment of the hospital was studied and analyzed. Performance measurea were identified and the Balanced Scorecard was created.  Future Enhancements Balanced Scorecard can be created similarly for various sub-departments of the hospital.

References Kaplan R S and Norton D P (1992) “The balanced scorecard: measures that drive performance”, Harvard Business Review January/February 1992 Kaplan, Robert and David Norton (1997), “Why Does Business Need A Balanced Scorecard”, Journal of Cost Management, May/June 1997 www.hbr.org www.retterisrikumaranhealthcentre.com

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