Recently, balanced scorecard is widely used in the public sector as well as in the
private sector. Balanced scorecard system of a particular hospital is a very useful
tool in the sense that it shows various measures for the management including the
traditional financial measures. However, since it does not show the impact of action
items, managers have to analyze his potential decisions. On the other hand, a
system dynamics model for the management of a hospital can be used to predict
future management status.
In this paper, a balanced scorecard system with a system dynamics model is
developed for a small sized hospital, and the feasibility and applicability of the
system have been tested. It turns out the combination of the balanced scorecard and
system dynamics technique can be comprised each other. The balanced scorecard
system can take advantage of the data forecasted by the system dynamics model
including the implementation of action items taken today. On the other hand, the
key performance indicators and action items from the balanced scorecard system
provide guidelines the scope and direction of the system dynamics model.
The additional efforts of developing a system dynamics model are well
compensated by the additional colorful functionalities of the system. This paper also
covers the future research areas for the combined system to be more effectively
developed.