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Strategic performance measurement in a healthcare organisation: A multiple criteria approach based on balanced scorecard

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  • Grigoroudis, E.
  • Orfanoudaki, E.
  • Zopounidis, C.

Abstract

The Balanced Scorecard (BSC) methodology focuses on major critical issues of modern business organisations: the effective measurement of corporate performance and the evaluation of the successful implementation of corporate strategy. Despite the increased adoption of the BSC methodology by numerous business organisations during the last decade, limited case studies concern non-profit organisations (e.g. public sector, educational institutions, healthcare organisations, etc.). The main aim of this study is to present the development of a performance measurement system for public health care organisations, in the context of BSC methodology. The proposed approach considers the distinguished characteristics of the aforementioned sector (e.g. lack of competition, social character of organisations, etc.). The proposed measurement system contains the most important financial performance indicators, as well as non-financial performance indicators that are able to examine the quality of the provided services, the satisfaction of internal and external customers, the self-improvement system of the organisation and the ability of the organisation to adapt and change. These indicators play the role of Key Performance Indicators (KPIs), in the context of BSC methodology. The presented analysis is based on a MCDA approach, where the UTASTAR method is used in order to aggregate the marginal performance of KPIs. This approach is able to take into account the preferences of the management of the organisation regarding the achievement of the defined strategic objectives. The main results of the proposed approach refer to the evaluation of the overall scores for each one of the main dimensions of the BSC methodology (i.e. financial, customer, internal business process, and innovation-learning). These results are able to help the organisation to evaluate and revise its strategy, and generally to adopt modern management approaches in every day practise.

Suggested Citation

  • Grigoroudis, E. & Orfanoudaki, E. & Zopounidis, C., 2012. "Strategic performance measurement in a healthcare organisation: A multiple criteria approach based on balanced scorecard," Omega, Elsevier, vol. 40(1), pages 104-119, January.
  • Handle: RePEc:eee:jomega:v:40:y:2012:i:1:p:104-119
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    Cited by:

    1. Anna Comacchio & Maddalena Campioni & Mauro Bonin, 2017. "From measuring the past to strategically framing challenges in the healthcare sector. The role of the balance scorecard," Working Papers 15, Department of Management, Università Ca' Foscari Venezia.
    2. Andriosopoulos, Dimitrios & Gaganis, Chrysovalantis & Pasiouras, Fotios & Zopounidis, Constantin, 2012. "An application of multicriteria decision aid models in the prediction of open market share repurchases," Omega, Elsevier, vol. 40(6), pages 882-890.
    3. Constantin Zopounidis & Michael Doumpos, 2013. "Multicriteria decision systems for financial problems," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 21(2), pages 241-261, July.
    4. repec:exl:2manag:v:17:y:2016:i:1:p:93-121 is not listed on IDEAS
    5. Verdecho, María-José & Alfaro-Saiz, Juan-Jose & Rodriguez-Rodriguez, Raul & Ortiz-Bas, Angel, 2012. "A multi-criteria approach for managing inter-enterprise collaborative relationships," Omega, Elsevier, vol. 40(3), pages 249-263.
    6. Tahir Ekin & Ozan Kocadagli & Nathaniel D. Bastian & Lawrence V. Fulton & Paul M. Griffin, 2016. "Fuzzy decision making in health systems: a resource allocation model," EURO Journal on Decision Processes, Springer;EURO - The Association of European Operational Research Societies, vol. 4(3), pages 245-267, November.
    7. Behrooz Noori, 2014. "Prioritizing strategic business units in the face of innovation performance: Combining fuzzy AHP and BSC," Proceedings of International Academic Conferences 0802059, International Institute of Social and Economic Sciences.
    8. Kadziński, Miłosz & Greco, Salvatore & Słowiński, Roman, 2013. "RUTA: A framework for assessing and selecting additive value functions on the basis of rank related requirements," Omega, Elsevier, vol. 41(4), pages 735-751.
    9. Tavares, L. Valadares, 2012. "An acyclic outranking model to support group decision making within organizations," Omega, Elsevier, vol. 40(6), pages 782-790.
    10. Varmaz, Armin & Varwig, Andreas & Poddig, Thorsten, 2013. "Centralized resource planning and Yardstick competition," Omega, Elsevier, vol. 41(1), pages 112-118.
    11. repec:eee:jrpoli:v:52:y:2017:i:c:p:181-191 is not listed on IDEAS
    12. Stavros Sindakis & Fotis Kitsios, 2016. "Entrepreneurial Dynamics and Patient Involvement in Service Innovation: Developing a Model to Promote Growth and Sustainability in Mental Health Care," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 7(2), pages 545-564, June.
    13. Durbach, Ian N. & Stewart, Theodor J., 2012. "A comparison of simplified value function approaches for treating uncertainty in multi-criteria decision analysis," Omega, Elsevier, vol. 40(4), pages 456-464.
    14. repec:eee:rensus:v:80:y:2017:i:c:p:519-530 is not listed on IDEAS
    15. repec:spr:annopr:v:248:y:2017:i:1:d:10.1007_s10479-016-2196-2 is not listed on IDEAS
    16. Camelia Mihaela Oane (Marinescu) & Klaudia Smol¹g & Emanuel Stefan Marinescu & Romuald Szopa, 2015. "Value-Based Management As The Innovating Paradigm Of Contemporary Governance – A Theoretical Approach," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 12(1), pages 106-120, DEcember.

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