Using the balanced scorecard to align strategy and performance in long-term care

Area of Science:

• Healthcare Management
• Performance Measurement
• Strategic Planning

Background:

• Canadian healthcare facilities face challenges in strategic management across diverse service lines.
• Effective performance measurement is crucial for optimizing multisite healthcare operations.

Purpose of the Study:

• To describe the adaptation and implementation of Kaplan and Norton's balanced scorecard at the Sisters of Charity of Ottawa Health Service (SCOHS).
• To illustrate how SCOHS integrated key principles into their balanced scorecard for enhanced strategic management.

Main Methods:

• Adapted Kaplan and Norton's balanced scorecard framework.
• Incorporated principles of cause-and-effect demonstration, outcomes, performance drivers, fiscal/utilization indicators, and organizational mission/values.
• Developed corporate-level lead and lag indicators for performance measurement.

Main Results:

• Successfully integrated a balanced scorecard within a multisite Canadian healthcare organization.
• Established a system linking strategic objectives to operational performance across various care settings.
• Provided examples of corporate-level outcomes and performance measures.

Conclusions:

• The balanced scorecard is an effective tool for strategic management in complex, multisite healthcare organizations.
• Integrating mission, values, and performance drivers enhances accountability and strategic alignment.
• The SCOHS model demonstrates a practical application of balanced scorecard principles in healthcare.