Generic performance management system guide for Klang Valley Hospitals

Abstract

It is crucial for hospitals to be constantly aware of their performance to find and rectify their possible deficiencies. The Balanced Scorecard (BSC) is a performance measurement technique that is utilized by different organizations due to its numerous advantages such as comprising both financial and non-financial perspectives and taking cause-and-effect links into account. Despite numerous studies on performance measurement of hospitals, limited research was conducted on the BSC application in Malaysian hospitals especially in Klang Valley that is a critical and densely populated area in Malaysia. Moreover, there was no specific guide to design a strategy map and BSC for Klang Valley hospitals. Hence, the main objective of this research was to provide specific guides to design a strategy map and BSC for Klang Valley hospitals. Data collection was performed through interview, observation and questionnaire while SPSS V.23 and Excell V.2010 were employed for data analysis. The research scope was Klang Valley area and 50 hospitals in this area including 15 public and 35 private hospitals. Initially, two generic strategy maps were developed for public and private hospitals. Afterwards, 45 BSC performance measures for healthcare were compiled and survey was conducted in Klang Valley hospitals to filter and identify the most appropriate performance measures for public and private hospitals based on “feasibility” and “relevance” criteria. Subsequently 23 BSC performance measures for public hospitals and 31 BSC performance measures for private hospitals were identified. It was followed by conducting a questionnaire survey in Klang Valley hospitals to assign a weight to each performance measure based on its importance score. A 5-point likert scale was employed in this regard and a weight between 0 and 1 was assigned to each performance measure. Afterwards, two generic BSCs were developed for public and private hospitals and they were sent to two BSC experts from Malaysia and the USA to be validated and thereupon both experts confirmed their appropriateness and acceptability. Subsequently, specific guides to design a strategy map and BSC for public and private hospitals were developed and eventually the research findings were evaluated by two Malaysian healthcare experts, one from Hospital Sultanah Aminah that is a public hospital and another from KPJ Johor Specialist Hospital that is a private hospital and both experts confirmed the applicability and usefulness of the developed BSCs, strategy maps and guides.