Designing a Bsc

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Building balanced scorecard with SWOT analysis, and
implementing ``Sun Tzu's The Art of Business
Management Strategies'' on QFD methodology
S.F. Lee
Hong Kong Institute of Vocational Education, Vocational Training Council, Hong Kong, China
Andrew Sai On Ko
International Management Centre, Oxford Brookes, UK

Keywords

SWOT analysis,
Balanced scorecard,
Quality function deployment,
Stategy, Strategic planning,
Total quality management

Abstract

Conjoining the SWOT matrix with
the balanced scorecard (BSC)
makes a systematic and holistic
strategic management system.
The SWOT matrix clearly identifies
the critical success factors that
can be implemented into the
identification of the different
aspects toward the balanced
scorecard. It is, therefore, a more
structural approach in setting up
the foundation of the balanced
scorecard; instead of simply
identifying the ``key performance
indicators'' (KPI) via gut feeling or
by brainstorming. The next step of
the whole process is to make use
of the quality function
deployment (QFD) methodology
with the balanced scorecard
(BSC) attributes identified as the
``Whats'' on the vertical axis, and
the major strategies of ``The Art of
Business Management'' Sun Tzu's
as the horizontal ``Hows'' axis. The
relationships are then studied in
the body of the QFD matrix. Consideration is then given as to how the model presented can be customised to allow companies using this approach to develop and
implement their corporate
business strategic plan.

Managerial Auditing Journal
15/1/2 [2000] 68±76
# MCB University Press
[ISSN 0268-6902]

[ 68 ]

1. Overview
Almost every successful manager
understands the importance of offering
quality service to gain a distinctive
advantage over the competition. After all,
gaining an advantage is the key to success
and even for the sake of survival. However,
many of the so-called organizational
strategies that companies depend on are not
endurable. Why? These strategies may not be
well structured and cannot stand the test of
time. Nevertheless, powerful organizational
tactics cannot easily be imitated; things like
a patented algorithm, exclusive right to a
special resource, and brand name
recognition.
``If only I knew then what I know now, I
would have done things differently''. People
always make this comment after they have
implemented the wrong corporate strategies.
Since we live in times of entwining
complexity, acceleration, and change,
making the right decision is extremely
important for strategic planning. It is fair to
say that every organization and individuals
have their unique set of strengths,
weaknesses, opportunities, and threats. It is
very important that an organization
determines its strengths, weaknesses,
opportunities, and threats, as well as the
competitions'. By linking the SWOT analysis
with the balanced scorecard, an organization
can balance its strengths against its
competitions' weaknesses, and optimise its
opportunities within the market.
Sun Tzu's The Art of War is the most
famous work on military operations in
ancient China and it is also one of the most
revered and well-known military texts
outside China. Being the oldest military
treatise in the world, it becomes one of the
greatest cultural legacies of the Chinese
nation. The significance of Sun Tzu's works
and military statements in influencing
military thoughts has seldom been
The current issue and full text archive of this journal is available at http://www.emerald-library.com

questioned and were used extensively during
the Warring States Period in Chinese history.
Sun Tzu's philosophy has become part of the
collective unconscious of most educated
Chinese. These strategies encapsulated in
mnemonic phrases; many of them passed into
proverbs and are very widely known in the
Chinese cultural sphere. In anticipation of
the global economy competitions and
business and trade...
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