| For long term development, a company needs strategy planning to answer what it wants to be and where to go, and performance measurement to answer how it is going. It needs to identify the trend and forecast the future, and identify the gap with the goal, and apply strategy management and performance management cycle to continuously reduce the gap, and increase the possibility to succeed. By analyzing the case of JIDA Evonik, this thesis demonstrates how to apply Balanced Scorecard to improve strategic performance management, how beneficial it is to the company and the positive changes it triggered, comprising topics about management of strategy, performance, operation, and business process, organizational development, etc.The opening chapter introduces the research background information, including the information of the research objective– JIDA Evonik, i.e. its history, organizational structure, development of the management system, current challenges, long term strategic issues, the status of strategy management and operation management before improvement project, and the attributes and insufficiency of the performance management system. The theory of balanced scorecard is introduced as the foundation of case study hereafter.Chapter Two provides an in-depth view of how BSC project is implemented in JIDA Evonik and the analysis of the issues in its development process. JIDA Evonik formulated project team after initial study of BSC, and defined the project of BSC strategic performance management improvement. The company re-developed its strategy, mission/vision/value statement and the strategy map, identified critical success factors and established the system of objectives and measures with target, selected and developed initiatives, cascaded the balanced scorecard within the entire company to align all departments and employees, refined the data collection and reporting system, developed BSC process, realized the linkage between strategy and operation, and clearly defined the roles in the process. Additionally, this chapter introduces the continuous communication through the entire project, i.e. how to organize the communication and education program via various media to improve the awareness of strategy, educate the BSC methodology, as well as the tremendous power and energy the programs brought to boost the active thinking of the staff towards improvement, and stimulate the findings and innovation internally.Chapter Three introduces improvement on strategic relativity, measurement and promotion of strategy execution, from the upgrade of performance management system based on BSC. It further explores the definition of BSC system, the performance measurement techniques, different types of measures and the rating criteria and their psychological impact on employees, and the match up with corporate culture and orientation. This chapter also probes the relation between strategy and performance, the strategic sense the employee development makes, the case study of human capital readiness program, and the impulse from information technology application to performance improvement.Based on the demonstration of the past chapters, Chapter Four summarizes the improvement of performance management and positive impact on the organizational change brought by performance management system based on BSC, including: the driving of strategy execution by performance management, and the strategic view equipped to the company; demand of organizational change and corporate culture for strategy execution, and new culture cultivation. In addition, this chapter presents the impact of strategy management and new working method improved by BSC upon traditional function/responsibility system and new role of human resources in new time.Finally, it is concluded that BSC can surely be implemented in Chinese companies, even the ones in relatively small size without solid foundation. The critical success factors are summarized in a view of BSC performance management improvement project. |
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