samsung balancedscorecard

HORVÁTH & PARTNER GmbHUnternehmensberatung BDUBerlin • Stuttgart • DusseldorfMunich • Munster BudapestPrague Vienna • ZurichOffice Berlin: +49/30/34 50 65-0

Joachim EsserFlorence, May 30 2001

Kunden-Logo

Balanced Scorecard with „Strategic Vision“ -the story of Samsung Corning Germany

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16.05.2001, h/kunden/samsung/SeUGI, Vortrag

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Agenda

1. Short Presentation of SCD

2. Balanced Scorecard to strengthen the SCD Management System

3. Strategic Vision - the backbone of our project


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Samsung Group Structure

Samsung Electronics

Samsung Machinery Samsung Chemicals

Samsung Finances others

Samsung Concern

Samsung Corning


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Products of SCD


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Samsung Corning TV Glass Factories - Locations

KOREASUWON PLANT

KUMI PLANT

SHENZHEN PLANT (CHINA)

SCM (MALAYSIA)

SCD (GERMANY)

TIJUANA PLANT (MEXICO)


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Company History1973 Foundation in Korea as Joint Venture between Samsung and

Corning Inc.

1975 Production of Black and White TV Glass in Suwon

1983 Production of Color TV Glass in Suwon

1988 Production of ITO Glass* in Kumi

1989 Production of Soft Ferrites** in Kumi

1992 Production of Soft Ferrites in China

1993 Production of Color TV Glass in Malaysia

1994 Foundation of SCD by taking over FGT GmbH

1996 Production of Specialty Glass*** for TFT LCD in Kumi (SCP)

1998 Foundation of Joint Venture (SSG) for Color TV Glass in China

1999 Production of Color TV Glass in Mexico (VMM)


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Presentation of SCD

Name: Samsung Corning Deutschland GmbH

Equity: 100% Samsung Corning Korea

Representative: Ju Hwan Jin, President

Foundation: March 1, 1994

Employees: 700

Ground: 285.601 m²

Floor space: 74.200 m²


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Agenda





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How should we appear inthe eyes of our share-holders?

Finance

How do we make ourselves capable of change and improvement?

Learing and Development

At which processes do we need toexcel?

Internal ProcessesHow should we appear in the eyes of our customers?

CustomersVision

andStrategy

vgl. Kaplan / Norton (1996)

Strategic Measures Targets Actions Goals




Translating a Vision and Strategy into theFour Perspectives of the BSC


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Project Planning

P ro je c t p laning B S C S ams ung C o rn ing D e uts c hlandD ays E s G P

36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

B eginning of the B S C 's process 3 1 2

C reation of a global B S CS tep 1: setting of strategical priorities 4 4S tep 2: goals and cause / effects (W S 1+ 2) 5 1 4S tep 3: perform ance m easures 4 4S tep 4: values of the goals (W S 3) 2 2S tep 5: program of actions 4 4

beginning of im plem entation (W S 4) 3 1 2

T otal 25 3 22

D ec em berS eptem ber O c tobe r N ovem ber


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Organisation of the BSC-Building up processManagementteam

Mr. J. H. Jin Samsung Corning Deutschland President

Mr. V. Henzel Samsung Corning Deutschland Plant Manager

Mr. D.J. Kim Samsung Corning Deutschland Director Admin.

Mr. T.K. Lee Samsung Corning Deutschland Adv. Production

Mr. S.H. Bae Samsung Corning Deutschland Director Sales

Mr. J. Peschke Samsung Corning Deutschland Dev. Manager Innov.

Mr. H. Schmerder SamsungCorning Deutschland Dev. Manager TC

BSC SupportteamMr. S.W. Lee Samsung Corning Deutschland HR

Dr. Olaf Seidel Samsung Corning Deutschland Inno

Mr. Dr. A. Deckmann Horváth & Partner


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SCD Vision

We rise ourmarket share byoffering attractive

products

SCD believesthat highly motivatedemployeesare the

base forour success

Topperformancein productivityand market-orientatedquality isour standard

We achievehighestcustomersatisfactioncomparedto our

competitors


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Clarification of strategic goals

Development and full exploitation of our employees‘ abilities

Benefits of the goal:b1 Attendanceb2 Staff turnoverb3 Suggestions for improvementb4 Efficiency improvementb5 Higher conformity of actual with target abilities

5.1 Estimation ofactual state

5.2 Trend analysis

5.3 Target profiles

5.4 Related to function/department

5Planning of com

petence profile

3.1 Organization

3.2 Content - universalvs. specific

3.3 Quantity/Quality

3.4 Performance measurement

3.4 Job-Rotation

3.1.1internal

external

3.1.2Tool

3Further training

1Inclination; Abilities

1.1 Individual demand

1.2 Analysis of potential

2St

aff s

atisf

actio

n

2.1 Transparency of management decisions

2.3 Salary

2.2 Acceptance of social services

2.4 Status

2.5 Workplace design

4.1 Performance measurement(Top-Down)

4.2 Bottom-Up-Feedback

4.3 medium-term planning of furtherdevelopment 4

Def

initio

n of

em

ploy

ees’

obj

ectiv

es6.1 Job situation;Labor market data

6.2 BMW, etc.Sitings

6Ex

tern

al in

fluen

ces


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Redefinition of staff dialogue

Challenge(top down)

■ Employee evaluation (applying a universal/specific set of measures)

■ Joint Target setting (individually)

Change■ Medium-range development planning

■ Qualification program (standard/individually decided modules)

Challenge(bottom up)

Evaluation of SCD‘s attractiveness as employer

■ Evaluation of management capabilities

Communication


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Measures follow strategy

Relevance

Preferred Suppliers

Items very high high low very low excellent good improvable bad

OtherSCDexcellent good improvable bad

Price

Quality

Flexibility

Reliability

(...)

(...)

Which new demands arise concerning your TV glass supplier?


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Agenda





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Major advantages of SAS “Strategic Vision”Easy to use

Total integration of cause and effect analysis

Drill-Down throughout the different levels

wide variety of communication and information opportunities / interactivity

flexible graphical visualization (user front end)

Totally web enabled

Easy and extensive Data Management

Interface to all current sytems


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samsung balancedscorecard

Documents

b s c s process

production of color

goals w s

production of ito glass

production of specialty

vortragseugi 192agenda1

vortragseugi 198agenda1

white tv glass