The balanced scorecard to the rescue of small business : building a strategic management system for the needs of a growing technology company
Siuvatti-Talvensaari, Tanja (2021)
2021
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202104265806
https://urn.fi/URN:NBN:fi:amk-202104265806
Tiivistelmä
Small businesses’ strategic management capabilities should be developed to improve small business profitability. It is in everyone’s best interest to improve this sector’s strategic management capabilities since more than 40 % of Finland’s gross domestic product (GDP) comes from small and medium-sized enterprises.
The research aimed to determine the best strategic management system for a small Finnish company, the best way to develop and implement it. The development work was done for a growing technology company in the analytical tools wholesale and service industry to improve the client company’s profitability with a strategic management system.
The strategic management model used was The Balanced Scorecard (BSC), developed by Robert S. Kaplan and David P. Norton together with a group of American companies in the 1990s. BSC is helpful in small business settings since it can be used for multitasking; as a communication tool, a measurement system, and a strategic management system.
The constructive research method was used since the aim was to build a new strategic management system for the client company. Employee views were con-sidered essential in BSC development, and because of that, several data collec-tion methods were used in different stages of the project. Brainstorming was used to wash out ideas behind Strategy Map development and questionnaires sent in various stages of the project to get numerical data regarding employee opinions.
The Balanced Scorecard was chosen as the client company’s strategic manage-ment system, and it was successfully created and onboarded for the client com-pany’s use. A new Balanced Scorecard project model was also developed during the development work, which emphasizes employee involvement. Considerably more work is needed to determine whether this new abridged BSC model helps small businesses onboard the Balanced Scorecard better than the older project models.
The research aimed to determine the best strategic management system for a small Finnish company, the best way to develop and implement it. The development work was done for a growing technology company in the analytical tools wholesale and service industry to improve the client company’s profitability with a strategic management system.
The strategic management model used was The Balanced Scorecard (BSC), developed by Robert S. Kaplan and David P. Norton together with a group of American companies in the 1990s. BSC is helpful in small business settings since it can be used for multitasking; as a communication tool, a measurement system, and a strategic management system.
The constructive research method was used since the aim was to build a new strategic management system for the client company. Employee views were con-sidered essential in BSC development, and because of that, several data collec-tion methods were used in different stages of the project. Brainstorming was used to wash out ideas behind Strategy Map development and questionnaires sent in various stages of the project to get numerical data regarding employee opinions.
The Balanced Scorecard was chosen as the client company’s strategic manage-ment system, and it was successfully created and onboarded for the client com-pany’s use. A new Balanced Scorecard project model was also developed during the development work, which emphasizes employee involvement. Considerably more work is needed to determine whether this new abridged BSC model helps small businesses onboard the Balanced Scorecard better than the older project models.