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The Balanced Scorecard

Solution at Peel Memorial
Hospitalc
Case Analysisc
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Thomas N. Baileyc
À
 À

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3aplan University
GBÀ
Term



Unit 4c
î Introduction

Prior to the
s, generous government funding allowed Canadian health care

facilities to provide excellent service and quality. In the early
s, increasing health

care costs have changed government funding, requiring providers to be more financially

accountable. In the mid-
s, hospitals and regional health authorities across Canada

were under siege from funding restraints, mergers and forced closures. At the same

time, the healthcare industry was focused on delivering high-quality patient care and

aligning the key stakeholders to the newly created vision. To evolve and to survive,

Peel Memorial Hospital (PMH) implemented the Balanced Scorecard performance

management system and that is the focus of this case study. Also highlighted are the

value of and the benefits to be gained when best practices from the corporate sector are

successfully adapted to the health care environment.

À History and Issues

Peel Memorial Hospital (PMH) in Brampton Ontario lacked measurable targets and

tired Mission Statement that tried to be all things to all people (Harber,
). Internal

surveys revealed that employees were unclear on the organization¶s strategic direction

and the linkage of various programs and initiatives undertaken.

In
4, PMH embarked on a comprehensive Continuous Quality Improvement

(CQI) training program for all staff which was followed by a burst of departmental and

interdepartmental improvement initiatives. The hospital management looked closely at

whether time, money and energy were being focused on the key clinical and business

processes. Meanwhile, the hospital employees wanted to know how the evolving

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program management structure relates to PMH¶s move into a patient focused care

model; how these organizational development initiatives tie in with PMH¶s move to

shared governance models for nursing and the professional discipline; and where the fit

for CQI and new computer system were.

Working with Xerox Quality Services, PMH identified the ³balanced scorecard´

solution as a good fit for PMH and an effective vehicle to further evolve the organization.

In
, PMH adopted the balanced scorecard system to measure its performance.

Î PerformanceManagement System Analysis

The use of balanced scorecard in hospitals as part of their performance

management and strategic management system has increased substantially. These

scorecards incorporated the concern of the hospitals¶ stakeholders, focused on the

hospitals¶ processes, and included both financial and non-financial indicators for

performance measurement.

The balanced scorecard at PMH included six categories of business with À data

elements that were the drivers of the performance results. At the center of the

Integrated Management Model framework was the Patient and Community Focus. The

other five categories of business were Management Leadership, Human Resource

Management, Patient Care Process Management, Quality Tools and Information

Utilization, and Performance Results, and their interrelationship was identified in the

framework (Harber,
).

³The first year of implementation included objectives that identified the need for

corporate measurement tools such as patient and staff team satisfaction´ (Harber,
,

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p. 6).uring year two of implementation, the Integrated Management Model was

streamlined to reduce the data elements. By now, PMH had become more adept at

managing and understanding the causal relationship between performance indicators

and performance results. It had a good idea of which performance results help to drive

performance results in other areas.

Although the development of the balanced scorecard was a major undertaking and

the development of performance measures a challenge, the implementation of balanced

scorecard at Peel Memorial Hospital was a success as the satisfaction level from

patient rose from  percent to  percent and the staff satisfaction survey participation

rose from  percent to 7 percent. Also, PMH achieved a better understanding of

where to invest time and money in learning objectives and the ability to relate mission

and vision statements to performance. It also enables PMH to become the lowest-cost

provider in its peer group. The balanced scorecard provided PMH the ability to translate

the hospital¶s strategic objectives into a coherent set of performance measures as well

as to align the seemingly disparate elements with organizational objectives.

¦ Conclusion

Mello (À

) says that performance management systems can significantly impact

organizational performance and process. The achievement of organizational goals

requires a sensible balance between managerial commitment to the strategic interests

of a business and to the human interests of its everyday operation at every level. The

successful in health care management will depend on organizations and top executives

balancing quality and customer satisfaction with adequate financing and long-range

goals. The balanced scorecard not only provides a framework for establishing

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performance measurement goals but also incorporates continued quality improvement

throughout the organization. Today, more and more Canadian hospitals have adopted

balanced scorecard as their strategic management system.

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 eferences

Mellow, J. A. (À

). Strategic Human Resource Management.Mason, OH:

South-Western Cengage Learning. Chapter
, p. 4-44.

Harber, B. W. (
). The Balanced Scorecard Solution at Peel Memorial

Hospital. Hospital Quarterly, p. -6.

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