Performance management experts agree that scorecard systems are the means to an end. The end is usually in the form of attaining a specific company goal. The means, not being the factors to achieving success, are ways to realizing strategies that lead to obtaining the goal. This can be best explained by identifying the elements involved in implementing the system. And it also involves the identification of the four dimensions covered by such system. Most organizations follow the same metrics. In the health care sector, the case is special. That is why they are urged to adopt a health care facilities scorecard system.
Scorecards do not work without the necessary metrics or key performance indicators. These are specified areas of a health care organization where outputs are evaluated, results are analyzed, and reports are obtained to make crucial decisions. Health care providers are different from most types of business. That is why its indicators are also quite unique. The four KPIs or dimensions used in the scorecard system are customer perspective, social accountability, internal processes, and financial.
Customer perspective is one dimension that involves reviewing people's perception and experience. Normally, it involves the process of obtaining the expectations of a customer before he is admitted and inquiring about the effect of the service offered by the facility. It also requires the knowledge of how customers think of the availability of medical equipment, the quick response of the staff, and the overall cost of the treatment.
On the financial side, the indicators are usually drawn from certain aspects, such as developmental cost of new facilities and medicines, profit from operation, and accounts receivable. By measuring this area, health care managers will be aided in making judgments based on financial performance and progress.
The operational dimension, on the other hand, has something to do with activities related to the everyday activities of the health care provider. Usually, these are: the number of queues, express patient arrivals, volume of surgical incidents, whether outpatient or inpatient, time for new medicines and facilities to develop, and average duration a patient stays in the clinic.
The fourth dimension of the health care scorecard system is social accountability. Since health care providers are service oriented, it is important that the organization's corporate responsibilities must be felt and made visible in the community. Examples of measurable social activities are health education seminars, public heath care programmes, employee development, health awareness initiatives, promotion of proper waste disposal, and charity involvements.
It is not all the time, though, that health care managers should focus on all four dimensions, as it would become a waste of time to spend more on areas that produce unnecessary results. For leaders to practically measure crucial areas, the factors of the scorecard system must be clearly identified. There are actually six and these are: units of analysis, purpose, audience, method, data, and results.
By examining the factors, managers can allocate their time and funds efficiently. In the audience factor, for example, if there is a large number of patients and workers to evaluate, full attention and financial aid must be given. Remember that every second, every dime, and every activity matters. So for health care facilities scorecard to work, one should identify the indicators and consider the factors.