Organizational critical success factors influencing balanced scorecard systems in UK healthcare

Abstract

Abstract The balanced scorecard has increasingly become established as a practitioner management tool within UK healthcare organizations over the last two decades. This paper aims to outline the current organizational critical factors that have a propensity to influence the success of a balanced scorecard system within UK healthcare organizations, with focus on the system in England. The National Health Service (NHS) remains a uniquely complex sector, and is entering a period of further change. Ten critical success factors are identified, which are grouped into four over arching categories. The categories identified are: strategic purpose, design and process, contextual integration, and strategic human resource management. It is acknowledged that different approaches can be taken in terms of content and purpose for a balanced scorecard system, including systems focusing on performance measurement or strategic management. Notwithstanding such local interpretations, it is suggested that senior management must pro-actively and effectively manage the full range of organizational critical success factors identified, in order to maximize the chances of improving organizational performance in UK healthcare through local, tailored, and relevant balanced scorecard systems.