The Application Of Balanced Scorecard In Metro Land Corporation

METRO LAND CORPORATION LTD(MTL) set up the new company strategyplan when the company re-organized in2009. The company planed to speed up thedevelopment in5years and to achieve10billion sale scales in2015. However, thecompany does not have enough expenses and ability regarding real estate developmentand management. The company faces on several weaknesses right now, such as thelimitation of land reserve, regional distribution, products development, and teambuilding. To utilizing the resource, capital, and human supporting from the shareholdersefficiently and to ensure the successful achievement of the company strategy plan, thecompany introduced Balanced Score Card (BSC) as a strategic performancemanagement tool in2009. In this thesis, our analysis is focus on the application ofBalanced Score Card by MTL.Balanced Score Card was considered as one of the most effective strategicmanagement method in recent75-year by (Harvard Business Review). It is usedextensively in business and industry, and other organizations worldwide to alignbusiness activities to the vision and strategy of the organizations. The core thought ofBSC is the ‘balance’. BSC gives managers and executives a more ‘balance’ view ororganizational performance and suggests that organizations should not only focus onfinancial measures, but to develop a comprehensive set of performance measuresframework to a full strategic planning and management system, including financialperspective, customer perspective, internal business processes perspective, and learningand growth perspective.MTL applied the Balanced Score Card system into the company strategic planningand management system, and divides the whole company system into three levels, thecompany, the project, and the department. Based on the company strategy plan, BSRsubdivides the company development goals and strategies into four objects in thecompany, which are finance, customer, internal business processes, and learning andgrowth. These objects and plans do not focus on the operating of each project, but showa logical, step-by-step connection between strategic objectives in the form of acause-and-effect chain, to make sure ultimately the implement of the common goals forthe satisfaction of employers, the efficiency of performance, customer satisfaction, and shareholders satisfaction. According to the strategic objectives requirements on thecompany level, the company sets up the specific balanced scorecard measurement onthe project level, to support the operation of projects and ensure all the expected resultcan be reached. The BSC on the department level requires each department make theirstrategic targets and working plans based on their duties and responsiblity specifically.Through the establishment of the three leave’s Balanced Score Card system in thecompany, it ultimately is about the identification of all the specific working objectivesand working plans on each different leaves and attaching targets to the whole companystrategy program. Finally, the BSC will make the complement of the company’sstrategice plan successfully.