Concept for the introduction of a balanced scorecard as a management tool for strategic management within SUATEC GmbH
Initial project situation:Need for strategic management
Since the introduction of a quality management system in accordance with DIN EN ISO 9001 in 2010, SUATEC GmbH has carried out regular management assessments to evaluate the company’s operational and strategic performance. The results of recent years have made it clear that the company’s strategic development has not been as successful as desired and therefore requires significant improvement. The main reasons for this were mainly to be found in strategic management.
For example, there was no continuous corporate planning in which strategic decisions were derived from internal and external situation analyses. Furthermore, SUATEC did not have a target system in which strategic targets could be derived from the corporate strategy and operationalized. In addition, structural and strategic decisions were often made at short notice and reactively, without evaluating the far-reaching effects on existing processes and structures.
Objective of the project:Implementation of a new management approach
As SUATEC GmbH was in the midst of an enormous growth phase as a project-based company, it was particularly important to restructure the strategic management. The deficits in strategic and operational management had to be eliminated in order to enable long-term and, above all, sustainable corporate management. For this reason, the company decided to implement the balanced scorecard concept as a holistic management approach, thus combining the elements of strategy development and implementation.
The aim of the project was to align the entire company with this method and to promote a uniform understanding of strategy among all managers as well as employee identification. In order to ensure the success of the project, the applicability of the concept to the company was examined and a concept for the introduction of the Balanced Scorecard as a management tool for strategic management at SUATEC GmbH was drawn up.
Project development:Preparation and implementation of the new management strategy
The implementation of the project was rolled out in a two-stage model and followed the principles of classic project management. In the first part, the guidelines for action were drawn up and preparations were made for a possible implementation of the Balanced Scorecard at SUATEC. All the necessary basics of strategic analysis, the derivation of strategies and their implementation in a strategy model were adapted to the company. The main focus of the project was the implementation of the balanced scorecard concept at SUATEC. The guiding principle follows Horváth & Partner’s 5-phase process model and has a continuous workshop character.
Due to the lack of strategic prerequisites at SUATEC, extensive internal and external analyses were initially carried out and the strategic direction was derived from these. From this basic strategic framework, strategic forward-looking goals were further specified and transferred into a target system using metrics and target values. By further specifying and operationalizing the strategy, strategic actions were defined, which were integrated vertically into individual functional areas of the company via a rollout process.
Added value for SUATEC GmbH:Long-term strategic orientation of the management
The implementation guide, which was adapted to the needs of SUATEC GmbH, proved that the introduction of a balanced scorecard brings great added value to the company. Building on this, it could be used as an instrument for the sustainable implementation of strategies at SUATEC. Forward-looking and operational actions are based on the company’s strategic direction and are decided jointly. By cascading the balanced scorecard to the subordinate organizational units, they will be actively involved in strategy implementation in the future. The balance of key figures and the evaluation of cause-and-effect relationships offers SUATEC the new opportunity to efficiently implement future-oriented measures and manage the company’s development.
The company’s flat hierarchies also favored the joint scorecard process and thus the strategic cooperation of all managers. The balanced scorecard instrument promotes understanding of the strategic work at SUATEC and significantly supports the development process. In addition, the balanced scorecard supports the annual budgeting process and provides a sound basis of argumentation for new investments in the company.
