A System Dynamics Approach to Strategic Planning and Performance in Healthcare: Dynamic Balanced Scorecard Leveraged with Corporate Social Responsibility

Abstract

The balance scorecard (herein after called BSC) is a powerful concept for performance measurement. However, it suffers from some drawbacks regarding quality of the BSC. System dynamics overcomes these shortcomings with a Dynamic Balanced scorecard (DBS). In this article we elaborate how a Dynamic Balanced scorecard can be used in the healthcare sector including its connectivity with Corporate Social Responsibility as a strategy in the changed regulatory regime in India particularly after enactment of Companies Act 2013, and section 135 and schedule VII in particular. The pandemic of 2020 has challenged us to look into CSR not only for a facelift for the stock market but to make the core of organizations strong. Healthcare specially will be the center of focus for coming days and reason why our article has special focus on this sector. Sustainability measures have been researched by scholars and it has been found that companies who factor in sustainability measures in their performance do better (Nidumoli, 2013) than those who do not. The DBS technique is a powerful tool to capture the CSR and sustainability measures. Our article aims at presenting a framework to implement this in organizations in health care.