The Weighting of Balanced Scorecard: A Non-Profit Hospital's Experience

While many organizations recently have been choosing the Balanced Scorecard (BSC) in response to strategic management and performance measurement requirements, few reports determine the weighting of the BSC in an interactive manner that reflects the judgments of all relevant managerial personnel. This study provides a structured framework for incorporate judgments and resolve conflicts among decision makers by employing Analytic Hierarchy Process (AHP) method. AHP framework considers both subjective and objective factors to arrive a consensus decision on weights selection through involvement of the decision makers. We present a model, which illustrates a practical framework for developing the relationship between the BSC and AHP. The effectiveness of the model is illustrated using a non-profit hospital in Taiwan as an example. The results have implications for handling the weighting issues of the BSC as well as driving right strategies in BSC.