|dc.description.abstract||The purpose of this research is to discuss how to use “Balance Scorecard” to get enough information from the company for Independent Directors that can really function its responsibility of supervising the company’s strategy operation.
Generally speaking, independent directors didn’t actually involve in a company’s daily operation and making strategies, also, a company’s managers usually have different opinions from the independent directors about the company’s operation and strategy. As a result, it is necessary for independent directors to get the company’s operation and strategy related information in order to achieve the purpose of supervising the company’s strategy operation.
Based on the methodology of “Balance Scorecard”, we would like to discuss following two questions:
1. To ensure the independent directors can really function their responsibility of supervising the company’s strategy operation, what kind of key information should be provided by the company?
2. Is the information provided to independent directors really relevant for them to supervising the company’s strategy operation ?
To do this research, first of all, we have to understand the company’s vision and strategy by studying the company’s operating information, and observing this company’s operation of daily business as well as its Board of Directors. Then, we come out a simulated Strategy Map and Balance Scorecard’s measures. The measures will express the cause-effect relationship between the company’ each perspective’s strategy objectives and it corresponding measures. By doing this, we can evaluate the effectiveness of strategy operation and the information provided to directors.
From this research, we concluded that the company should utilize the Strategy Map and Balance Scorecard to divide the company’s strategy objectives into four major perspectives of Financial, Customer, Internal Business Process, and Learning and Growth. Then, by linking the strategy and the performance measures, as well as its cause-effect relationship, it will provide the independent directors with the key information to help them to understand and to supervise the company’s strategy operation.
From the existing information provided by the case company to the Board, we found that the information includes many measures, but those measures mainly focus on Financial part, also there is no linkage between the measures and the company’s strategy. As a result, it will be difficult for independent directors to get effective information to really function it responsibility.||en_US|