Create Balanced Scorecard to Help Strategy Execution: An International Company Case Study
Date Issued
2009
Date
2009
Author(s)
Chang, Chung-Chien
Abstract
The industry environment of the case company has become mature and saturated, including petrochemical, steel, paper and energy. To overcome the problem, the strategic goals must be set and executed thoroughly. Developing a systematic method to depict a complete strategy map and monitor the early success to ensure a final acceptable result is the purpose of the study. According to Kaplan and Norton’s study, all the companies which have implemented the BSC can efficiently and fast execute the new strategies. They use BSC to describe the strategy and link the management system to the BSC. Strategy and management system are linked accordingly. Therefore, the study tries to use BSC’s four perspectives to depict the company’s strategy map and make the strategic goals and action plan.As the BSC’s internal process perspectives can produce and deliver the value proposition and increase the productivity, we develop the strategy map and strategy stream based on it. The case company’s strategy streams are optimizing project management, improving cost structure, account management and after sales service. We have come to the knowledge age and the intangible assets have become important. Based on the strategy streams, 16 strategic goals for HR asset, IT asset and organization asset are developed in order to assure the success of the strategy streams. After completing the strategy map, we have defined many perspectives’ goals. Those goals must be executed if we want the strategy to be successful. In the company’s BSC, we adopt the quantified measurements to measure the success of the goals. We not only consider the lag indicators but also consider the lead indicators. At the end, we develop the action plan in order to reach those targets in the BSC, including the initiatives and budget.In the BSC frame, the company’s organization and process are divided into four perspectives. They have cause and effect relationship. Hence, they can be the extension of the cascade loops, i.e., four mutually influenced perspectives are linked and controlled by the cascade control loops. Like the advantages of cascade control, the separate organizations and processes based on the four perspectives can be corrected in time and can also be corrected by the result of the next perspective organization and process.Finally, the strategy based on the BSC can provide the SAS a two dimension coordinate and frame. The developer for SAS can develop the SAS following the four perspectives and integrate the SASs for the whole company.
Subjects
Balanced Scorecard (BSC)
Strategy Stream
Strategy Map
Intangible Asset
Strategy Activities System (SAS)
Type
thesis
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