Balanced and Imbalanced Performance Evaluation using Balanced Scorecard and Analytic Hierarchy Process

Abstract

Introduction: This study aimed to compare the performance evaluation of a selected hospital through weighting and not weighting the indices using a hybrid approach. Materials and Methods: This mixed-method study was conducted in a Specialized Hospital in Mashhad, Iran. In the group discussion sessions of the scorecard team, a list of performance indices was prepared in four perspectives using a balanced scorecard approach. The indices were selected using the Delphi method and measured in the hospital afterward. In the first method, the percentage of realization of each index was measured based on the expected value of the index in the hospital, and the overall performance score was obtained. In the second method, the weight of each perspective and index was calculated using the standard hierarchy analysis questionnaire, and the coefficient of the significance of each index and perspective was considered in hospital performance based on the expected quantity of the index. Eventually, the performance of the hospital was compared using these two methods. Results: Based on the results obtained from the application of the weighting method, the processes and customer perspectives obtained the highest and the lowest scores, respectively. The score of the hospital’s performance in this method was obtained at 89.27%. However, in the method without weighting, the processes and financial perspectives obtained the highest and the lowest scores, respectively, and the score of the hospital’s performance was estimated at 82.63%. Conclusion: The score of perspectives and indices will be different when the significance of perspectives and indices are ignored, which results in an incorrect (downgraded) estimation of the organization performance.

Keywords

• analytic hierarchy process
• balanced scorecard
• hospital
• performance evaluation