Balanced Scorecard Adaptation using AHP for the Corporate Healthcare Sector in India

The Balanced Scorecard(BSC) developed in the 1990s as a performance management tool finds significant applications in several areas including healthcare. Healthcare Industry though was slow in utilising the BSC due to complications in data sourcing and its management. The varied nature of data generated and handled in the process of healthcare delivery poses a challenge in measuring and prioritising the Key Performance Indicators(KPI). In the present study, to tackle this challenge the Analytic Hierarchy Process(AHP) which uses mathematical modelling and powerful synthesis for combining data and judgement to effectively rank options and predict outcomes has been applied. Here, the AHP was used to develop a comprehensive BSC that will not only give priorities within each perspective of the BSC but also provide an overall ranking list to aid performance management. Twenty senior administrators from a Corporate Hospital in India took part in the AHP exercise to give their pairwise choices for all the KPIs. The eigenvector method of the AHP aided in consolidating and processing their collective opinions to give a scientifically designed BSC framework. To ensure data validity in terms of consistencies and to perform the complex calculations involved, the Business Performance Management Singapore (BPMSG) template was used. By adopting the Row Geometric Mean Method this template provided the final output in an easy-to-read graphical form which can be displayed on a digital dashboard. The primary advantage of this method of display is the flexibility it permits in modifying the target values of the KPIs, real-time. The outcome of this study is expected to provide strategic directions to the hospital. The developed BSC framework is also expected to provide a benchmark for other similar healthcare institutions across India.