59. A hospital wants to increase revenue by performing more surgeries each day. This can be accomplished by reducing the turnaround time between surgeries in operating rooms. What is this objective an example of?
Answer: C
This objective is an example of a key performance indicator.
A key performance indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving key business objectives. In this case, the hospital aims to increase the number of surgeries performed by reducing turnaround time, which is a clear and measurable goal.
A) A balanced scorecard
A balanced scorecard is a strategic planning and management system that organizations use to communicate what they are trying to accomplish, align daily work with strategy, prioritize projects, and measure and monitor progress. While it may relate to overall performance, it does not specifically represent the defined objective of reducing turnaround time for surgeries.
B) A departmental income statement
A departmental income statement provides a breakdown of revenues, expenses, and profits by department within an organization. This option focuses on financial performance rather than operational efficiency or performance metrics, making it irrelevant to the objective of increasing the number of surgeries.
C) A key performance indicator
A key performance indicator (KPI) is indeed the correct answer as it represents a quantifiable measure that helps an organization track progress towards specific goals. The hospital's focus on reducing turnaround time to increase surgeries aligns perfectly with the definition of a KPI.
D) A managerial directive
A managerial directive refers to an instruction or order given by management to achieve a specific outcome. While this objective may be part of a managerial directive, it does not encapsulate the specific measurable nature required to classify it as a KPI, thus making this option less accurate.
Conclusion
The correct answer is C, as it accurately identifies the hospital's objective of improving surgery throughput through measurable performance. Other options fail to capture the essence of the objective, focusing either on broader strategies or unrelated financial metrics rather than the specific performance measure aimed at operational efficiency.