Research Article
The Case of BSC System in Korea Otsuka Pharmaceuticals
1 Caleb ABC Consulting, 2 Korea Otsuka Pharmaceutical, 3 Sungkyunkwan University
Published: January 2012 · Vol. 16, No. 4 · pp. 29-54
Full Text
Abstract
This case describes the implementation and revision process of the Balanced Scorecard(BSC)system of the Korea Otsuka Pharmaceuticals in detail. It shows how a BSC system is designed and used in a firm, disclosing its strategy map, a proprietary information. The initial BSC was focused on KPI derived for performance evaluation rather than strategy. The strategy map was just like the connection of indicators that include all the functions within the company. BSC started operating in 2004, the Excel-based program then was uncomfortable to use and it was difficult to share the feedback of people with everyone. Thus, in 2005, the company decided to operate BSC as an information system. As it grew with its Vision 2008, its organizational structure changed into the strategy unit division system, and future vision of business was directed to a diversification strategy. Hence, diverse strategic requirements of the organization could no longer be solved by cascading the firm-level strategy map. The Korea Otsuka Pharmaceuticals strengthened the ability to execute its strategies, facilitated the improvement of the processes, and is pursuing constant challenges and changes by combining the BSC system and Six Sigma.
