Linking Balanced Scorecard To Strategy: Case Study On M Co., Ltd.

In current period, financial data is not enough to evaluate one company’s performance and intangible assets are more important to completely evaluate the value of a company. Balanced scorecard was created to combine the financial data and non-financial data. This essay analyzes the design and implementation of BCS in M company based on the BCS theory and summarizes the strong points and weakness which are beneficial for local companies who plan to implement BCS.The thesis sets up the theoretical bases, summarizes the contents of BCS and the relativity between BCS and strategy, constructs the whole process of initiating and implementing BCS project and points out the limitation of BCS. Then the thesis studies the case of M company, describes the mission, value, orientation, vision and strategy, analyzes the breakdown from strategy to BCS indicators, from indicators to department targets then to individual targets. Therefore the operating performance indicators link to company strategy in this way. Then it analyzes the success and weakness of the case and provides the action plan to overcome the difficulties. Finally, the thesis concludes that the key points of BCS project lie in linking BCS performance indicators to strategy and linking BCS to performance evaluation. The manufacturing companies which plan to implement BCS can benefit and learn lessons from the study results on the successful case.