Balanced Scorecard
Magic Technology faced a range of challenges in different levels and areas within the company. Magic had unstructured information in numerous fields such as:
The business strategy process was not obvious. They couldn’t analyze past experience and effectiveness in order to formulate future strategy.
Outdated operating processes influenced stability of production quality.
Inadequate performance checking mechanism. Mainland factories used KPIs but had not connected them to performance.
Existing management systems were not reliable as the data had not been systematised and had not been fully implemented.
Balanced Scorecard is a mechanism between strategic plans and decisions with daily tasks, the way to direct activities of the company (or group) to achieve them. At the level of business process control strategic activities through the so-called key performance indicators (KPI). KPI is a measure of achievable goals, as well as the characteristics of the efficiency of business processes and performance of each employee. In this context, the Balanced Scorecard is not only a strategic but also an operational management tool. That’s why this tool was chosen to solve existing problems and reach better result in future performance.
The idea was to create an integrated structure and logic of strategy formation management, in order to build a more comprehensive strategy formation mechanism. Lo hoped to improve performance management via connection between balanced scorecard and KPI mechanism. Also he wanted to create better communication between top management and stuff to let employees understand the strategic idea of the company. Furthermore, reviewing of existed action plans let the company formulate and implement strategic objectives reflected on the balanced scorecard.
All in all, balanced