Balanced Scorecards
HKU976
NEALE O’CONNOR
MAKING BALANCED SCORECARD WORK TO IMPLEMENT BUSINESS STRATEGIES AT MAGIC TECHNOLOGY
In August 2008, Magic Technology (“Magic”) launched an initiative to implement the balanced scorecard in its organisation. Alan Lo, the chief executive officer (“CEO”), oversaw the implementation of the balanced scorecard at the company’s headquarters. Lo encountered both strategic and execution difficulties during implementation. Yet, such difficulties hinted at a more fundamental issue of too many formulated strategic directions in the first place. In late 2009, Lo was in the middle of the execution phase when he considered pushing the design of the balanced scorecard towards the department level. How would the difficulties encountered at the headquarters influence an initiative of departmental design of the balanced scorecard?
Magic Technology
Magic was established in 1994 in Taipei to manufacture electronic components, particularly passive components. Magic was a leading manufacturer of electromagnetic interference (“EMI”) components and wire-wound inductors. The company had a registered capital (2009) of about NT$250 million.1 CEO Alan Lo oversaw the company’s headquarters in Taipei and three factories in mainland China (two in Shenzhen and one in Suzhou) with a matrix organization [see Exhibit 1]. Electronics industries became more and more specific along the value chain [see Exhibit 2]. This value chain began with the raw materials, semi-conductors and components in the upper stream, electronic systems, to the information accessories, photo electronics, communications and consumer electronic products in the lower stream.
1
On 30 June 2011 the exchange rate was US$1 = NT$28.795.
Ka Wai Boby Shiu prepared this case under the supervision of Dr Neale O’Connor for class discussion. This case is not intended to show effective or ineffective handling of decision or business processes. © 2012 by The Asia Case Research Centre, The University
NEALE O’CONNOR
MAKING BALANCED SCORECARD WORK TO IMPLEMENT BUSINESS STRATEGIES AT MAGIC TECHNOLOGY
In August 2008, Magic Technology (“Magic”) launched an initiative to implement the balanced scorecard in its organisation. Alan Lo, the chief executive officer (“CEO”), oversaw the implementation of the balanced scorecard at the company’s headquarters. Lo encountered both strategic and execution difficulties during implementation. Yet, such difficulties hinted at a more fundamental issue of too many formulated strategic directions in the first place. In late 2009, Lo was in the middle of the execution phase when he considered pushing the design of the balanced scorecard towards the department level. How would the difficulties encountered at the headquarters influence an initiative of departmental design of the balanced scorecard?
Magic Technology
Magic was established in 1994 in Taipei to manufacture electronic components, particularly passive components. Magic was a leading manufacturer of electromagnetic interference (“EMI”) components and wire-wound inductors. The company had a registered capital (2009) of about NT$250 million.1 CEO Alan Lo oversaw the company’s headquarters in Taipei and three factories in mainland China (two in Shenzhen and one in Suzhou) with a matrix organization [see Exhibit 1]. Electronics industries became more and more specific along the value chain [see Exhibit 2]. This value chain began with the raw materials, semi-conductors and components in the upper stream, electronic systems, to the information accessories, photo electronics, communications and consumer electronic products in the lower stream.
1
On 30 June 2011 the exchange rate was US$1 = NT$28.795.
Ka Wai Boby Shiu prepared this case under the supervision of Dr Neale O’Connor for class discussion. This case is not intended to show effective or ineffective handling of decision or business processes. © 2012 by The Asia Case Research Centre, The University