A balanced scorecard technique could be used to measure performance in strategic planning. Its development requires a translation of strategic goals into actionable and tangible objectives (Kollberg & Elg, 2011). Based on a quest to address rising healthcare costs, the balanced scorecard tool should hinge on four key pillars: financial, patient, internal, and innovation perspectives. The model outlined below could be used to track the performance of the strategic planning process to address the rising cost of healthcare.
Table 1. Balanced Scorecard Framework (Source: Developed by Author).
Data that could be used to operationalize the balanced scorecard model may be obtained from several sources, including incidence reports, expert opinions, and management reports. This type of data could be obtained from websites, libraries, and face-to-face discussions. The balanced scorecard technique would be central in evaluating progress because it complements traditional measures of financial performance, such as profitability and price markups (Groene, Brandt, Schmidt, & Moeller, 2009).
The balanced scorecard technique could also be used to assess the impact of proposed changes to the financial model of healthcare delivery by evaluating progress based on the four perspectives outlined above. By using this technique, stakeholders would have a more comprehensive understanding of how to achieve strategic planning goals (Jeffs, Merkley, Richardson, Eli, & McAllister, 2011; Sare & Ogilvie, 2010).
Lastly, the balanced scorecard technique could be instrumental in determining if the costs associated with the provision of healthcare services are justified by evaluating whether there is a proper return on capital employed in the provision of health services (Fields & Cohen, 2011). Overall, this tool is useful in measuring performance as a key tenet of strategic planning.
References
Fields, S. A., & Cohen, D. (2011).Performance enhancement using a balanced scorecard in a patient-centered medical home. Family Medicine, 43(10), 735-739.
Groene, O., Brandt, E., Schmidt, W., & Moeller, J. (2009). The balanced scorecard of acute settings: Development process, definition of 20 strategic objectives and implementation. International Journal for Quality in Health Care, 21(4), 259-271.
Jeffs, L., Merkley, J., Richardson, S., Eli, J., & McAllister, M. (2011). Using a nursing balanced scorecard approach to measure and optimize nursing performance. Nursing Leadership, 24(1), 47-58.
Kollberg, B., & Elg, M. (2011). The practice of the balanced scorecard in health care services. International Journal of Productivity and Performance Management, 60(5), 427-445.
Sare, M. V., & Ogilvie, L. (2010). Strategic planning for nurses: Change management in health care. Sudbury, MA: Jones and Bartlett.