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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 questioned and were used extensively during


SWOT analysis, 1. Overview the Warring States Period in Chinese history.
Balanced scorecard,
Almost every successful manager Sun Tzu's philosophy has become part of the
Quality function deployment,
Stategy, Strategic planning, understands the importance of offering collective unconscious of most educated
Total quality management quality service to gain a distinctive Chinese. These strategies encapsulated in
advantage over the competition. After all, mnemonic phrases; many of them passed into
Abstract gaining an advantage is the key to success proverbs and are very widely known in the
Conjoining the SWOT matrix with
and even for the sake of survival. However, Chinese cultural sphere. In anticipation of
the balanced scorecard (BSC)
makes a systematic and holistic
many of the so-called organizational the global economy competitions and
strategic management system. strategies that companies depend on are not business and trade wars among countries,
The SWOT matrix clearly identifies endurable. Why? These strategies may not be the words of Sun Tzu are particularly useful
the critical success factors that well structured and cannot stand the test of and appropriate for evaluating business
can be implemented into the time. Nevertheless, powerful organizational management strategies. Sun Tzu's main
identification of the different
tactics cannot easily be imitated; things like philosophy in military situations are
aspects toward the balanced
scorecard. It is, therefore, a more
a patented algorithm, exclusive right to a identified and correlated to actual business
structural approach in setting up special resource, and brand name environment.
the foundation of the balanced recognition. Apparently, relating modern management
scorecard; instead of simply ``If only I knew then what I know now, I philosophies and organization behaviours to
identifying the ``key performance would have done things differently''. People Sun Tzu's strategies by looking into the
indicators'' (KPI) via gut feeling or always make this comment after they have
by brainstorming. The next step of philosophies advocated by him and the
the whole process is to make use
implemented the wrong corporate strategies. situation of top management seems to be
of the quality function Since we live in times of entwining difficult and unrealistic. It is, however,
deployment (QFD) methodology complexity, acceleration, and change, essential to identify the differences between
with the balanced scorecard making the right decision is extremely the ancient and modern times and also
(BSC) attributes identified as the important for strategic planning. It is fair to
``Whats'' on the vertical axis, and between military and business operations
say that every organization and individuals before proper management strategies were
the major strategies of ``The Art of
have their unique set of strengths,
Business Management'' Sun Tzu's launched. His strategic planning in waging
as the horizontal ``Hows'' axis. The weaknesses, opportunities, and threats. It is
war in ancient China highlights the strategic
relationships are then studied in very important that an organization
management in today's corporations. The
the body of the QFD matrix. Con- determines its strengths, weaknesses,
sideration is then given as to how objective is to emulate the model set by Sun
opportunities, and threats, as well as the
the model presented can be cus- Tzu, presenting the essences in organising
competitions'. By linking the SWOT analysis
tomised to allow companies using for strategy. Organizations should have their
this approach to develop and
with the balanced scorecard, an organization
strategic plans constantly reviewed,
implement their corporate can balance its strengths against its
competitions' weaknesses, and optimise its continuously shaped and positioned in the
business strategic plan.
opportunities within the market. struggle of continuous competition.
Sun Tzu's The Art of War is the most QFD maintains customer ideas and
famous work on military operations in requirements throughout the process that in
ancient China and it is also one of the most turn leads to customer satisfaction. A further
revered and well-known military texts customer expectation is for the next purchase
outside China. Being the oldest military to be a better product. However, this is
treatise in the world, it becomes one of the identified at no extra cost. When the
greatest cultural legacies of the Chinese satisfaction is not achieved, a competitor's
nation. The significance of Sun Tzu's works product is likely to be chosen. QFD is a
and military statements in influencing powerful technique that enables companies
military thoughts has seldom been to anticipate and prioritise customer needs in
Managerial Auditing Journal their totality and to incorporate them
15/1/2 [2000] 68±76 effectively into the product and service
The current issue and full text archive of this journal is available at
# MCB University Press provided for the end-user (Wassermann,
[ISSN 0268-6902] http://www.emerald-library.com
1993).
[ 68 ]
S.F. Lee and Andrew Sai On Ko . Are there any changes in consumer
Building balanced scorecard 2. The SWOT analysis demand, which call for new requirements
with SWOT analysis, and of your products or services?
implementing ``Sun Tzu's The When implementing a SWOT analysis to
Art of Business Management devise a set of strategies, the following
. Is the changing technology hurting your
Strategies'' on QFD guidelines should be utilised. organization's position within the
methodology marketplace?
Managerial Auditing Journal
15/1/2 [2000] 68±76 Strengths (Weihrich, 1982)
Determine your organization's strong points. 2.1 The wizardry of SWOT
This should be from both your internal and The wizardry of SWOT is the matching of
specific internal and external factors, which
external customers. Do not be humble; be as
creates a strategic matrix, which makes
pragmatic as possible.
sense. (Note: The internal factors are within
. Are there any unique or distinct
the control of your organization, such as
advantages that makes your organization
operations, finance, marketing, and in other
stand out in the crowd? areas. The external factors are out of your
. What makes the customers choose your organization's control, such as political and
organization over the competition's? economic factors, technology, competition,
. Are there any products or services in and in other areas). The four combinations
which your competition cannot imitate are called the Maxi-Maxi (Strengths/
(now and in the future)? Opportunities), Maxi-Mini (Strengths/
Threats), Mini-Maxi (Weakness/
Weaknesses (Weihrich, 1982) Opportunities), and Mini-Mini (Weaknesses/
Determine your organization's weaknesses, Threats). (See Figure 1.)
not only from your point of view, but also 1 Maxi-Maxi (S/O): this combination shows
more importantly, from your customers. the organization's strengths and
Although it may be difficult for an opportunities. In essence, an organization
organization to acknowledge its weaknesses, should strive to maximise its strengths to
it is best to handle the bitter reality without capitalise on new opportunities
procrastination. (Weihrich, 1982).
. Are there any operations or procedures 2 Maxi-Mini (S/T): this combination shows
that can be streamlined? the organization's strengths in
. What and why do your competition consideration of threats, e.g. from
operate better than your organization? competitors. In essence, an organization
. Is there any avoidance that your should strive to use its strengths to parry
or minimise threats (Weihrich, 1982).
organization should be aware of?
3 Mini-Maxi (W/O): this combination shows
. Does your competition have a certain
the organization's weaknesses in tandem
market segment conquered?
with opportunities. It is an exertion to
conquer the organization's weaknesses by
Opportunities (Weihrich, 1982) making the most out of any new
Another major factor is to determine how opportunities (Weihrich, 1982).
your organization can continue to grow 4 Mini-Mini (W/T): this combination shows
within the marketplace. After all, the organization's weaknesses by
opportunities are everywhere, such as comparison with the current external
changes in technology, government policy, threats. This is most definitely defensive
social patterns, and so on. strategy, to minimise an organization's
. Where and what are the attractive internal weaknesses and avoid external
opportunities within your marketplace? threats (Weihrich, 1982).
. Are there any new emerging trends
within the market? 2.2 Collateral insight of SWOT
. What does your organization predict in As mentioned, the wizardry of SWOT is the
the future that may depict new matching of specific internal and external
opportunities?
Figure 1
Threats (Weihrich, 1982) SWOT matrix
No one likes to think about threats, but we
still have to face them, despite the fact that
they are external factors that are out of our
control. For example, the recent major
economic slump in Asia. It is vital to be
prepared and face threats even during
turbulent situations.
. What is your competition doing that is
suppressing your organizational
development?
[ 69 ]
S.F. Lee and Andrew Sai On Ko factors. However, what about the matching setting process, can be relied upon for self-
Building balanced scorecard items within internal factors and items control. Therefore, productivity can best be
with SWOT analysis, and within external factors. The primary reason improved by clarifying strategically aligned
implementing ``Sun Tzu's The
Art of Business Management is that matching these factors will create goals.'' (Dinesh and Palmer, 1998). Almost 40
Strategies'' on QFD strategies that will not make sense. For years later, Kaplan and Norton's balanced
methodology example, with a combination of strength and scorecard is also based on goal conformity as
Managerial Auditing Journal weakness (both are internal factors), lets say a means of improving performance (Dinesh
15/1/2 [2000] 68±76 one of your organization's strengths is and Palmer, 1998). In linking Kaplan and
``plenty of cash'' and one of your weaknesses Norton's balanced scorecard with
is ``lack of training''. Therefore, mixing these McGregor's ``Theory Y'', one must note that
two factors together, your management team ``Theory Y'' deals with individual
might simply decide to plan more training for performance, and the ``balanced scorecard''
the staff members. The obvious remark for deals with corporate performance. However,
this purposeless strategy will be ``so what!'' the linkage of the two performance
Mainly because you should not train, just for measurement tools makes sense, mainly
the sake of training. A successful training because corporate performance is merely an
program must have a specific target in accumulation of individual performance.
response to external changes. You have to What makes the balanced scorecard stand
determine your organization's specific needs out is that it is a holistic performance
for training in line with the external and management system which is geared towards
internal factors. In other words, the strategy defining performance measures and
must have an external factor as a trigger in communicating objectives and vision to the
order for it to be feasible. organization (Roest, 1997).

3.1 Critique of the balanced scorecard


3. The balanced scorecard McAdam and O'Neill (1999) reviewed the
balanced scorecard based on their
Professor Robert Kaplan and David Norton framework of total quality management
developed the balanced scorecard (BSC) in the (TQM) and the main critiques are as follow:
early 1990s. According to Kaplan and Norton . ``TQM is strategically linked to business
(1996), ``the Balanced Scorecard translates an goals''. Despite the fact that Kaplan and
organization's mission and strategy into a Norton outlined four perspectives
comprehensive set of performance measures (financial, customer, internal processes,
and provides the framework for strategic and learning and growth) as the key
measurement and management''. elements of organizational strategies that
Traditionally, most organizations look at their must be measured, the BSC remains a
corporate performance by reviewing the means of effectively measuring strategy
financial aspects. However, financial rather than a means of deciding strategy
measures alone is not a balanced view of the (McAdam and O'Neill, 1999). This is the
critical success factors of any organizations, main reason that this researcher feels that
mainly because financial measurements tend the SWOT analysis serves as a great
to measure the past. Therefore, what if an ``stepping stone'' to build the key
organization knows what has happened, if performance indicators (KPI) of the BSC.
there are no explanations of ``Why it has . ``Customer understanding and satisfaction
happened'' (Sanger, 1998). is vital''. The BSC does a great job in
The balanced scorecard is based on four strengthening the link between customer
key perspectives; they are the financial goals improvement initiatives and the
± ``How will we look to our stake holders?'' organization's strategy. However, the BSC
customer perspective ± ``How must we look to does not indicate how new customers and
our customers?'' internal processes ± ``What markets can be identified (McAdam and
internal processes must we excel at?'' and O'Neill, 1999). This researcher feels that
learning and growth ± ``How can the the BSC's major weakness is the lack of
organization learn and improve?'' (Sanger, ``hows'', by linking the BSC to the quality
1998). The concept of the balanced scorecard function deployment (QFD), the entire
is very similar to the ``Theory Y'' approach ``hows'' can be identified.
which was developed by McGregor in 1960.
McGregor's ``Theory X'' discussed that the
traditional management system assumes that
``the average human being has an inherent 4. The link between SWOT analysis
dislike of work and will avoid it if he can'' and the balanced scorecard
(Dinesh and Palmer, 1998). McGregor's Kaplan and Norton indicated that the first
``Theory Y'' assumes the opposite in human step of the actual implementation of the
nature and stated that ``the average person balanced scorecard is to clarify the company
finds work as natural as play or rest''. Based vision and strategy (Kaplan and Norton,
on ``Theory Y'', McGregor concluded, ``An 1996). This researcher feels that by first
employee, if directly involved in the goal implementing the SWOT analysis, to develop
[ 70 ]
S.F. Lee and Andrew Sai On Ko a set of strategies that makes sense, will serve Industries Ltd., of Japan in 1972. In the 1990s,
Building balanced scorecard as a stepping stone towards the actual there were many successful examples from
with SWOT analysis, and implementation of the balanced scorecard. various industries (Halbleib et al., 1993;
implementing ``Sun Tzu's The
Art of Business Management The balanced scorecard widely applied in Erikkson et al., 1993; Hauser et al., 1988;
Strategies'' on QFD corporate performance management can be Stubbs et al., 1994) using the QFD quality tool
methodology easily extended to strategic planning of a extensively. Their results were encouraging
Managerial Auditing Journal country or a city. Table I is an example of and impressive.
15/1/2 [2000] 68±76
using this method in setting strategies for the QFD is an engineering method for
Hong Kong Special Administration Region converting customer demands into quality
(HKSAR). characteristics and for developing product
design by systematically deploying the
relationships of customer demands and
product characteristics. The QFD
5. Critique of quality function methodology is broken into numerous
deployment (QFD) methodology analytical steps, most of which are
The earliest use of QFD can be traced back to documented as charts. It is a three-step
the Kobe shipyard, Mitsubishi Heavy process: quality design, detailed design and

Table I
The SWOT matrix of Hong Kong with attributes of the balanced scorecard
Strengths Weaknesses
S1 ± Good legal system W1 ± Inexperienced executive
S2 ± Good tele-communication/ council
infrastructure W2 ± Weakening English standard
S3 ± Huge reserve W3 ± Lack of natural resource
S4 ± Quality/efficient civil servant W4 ± US $ Peg
S5 ± Stable currency W5 ± Weakening manufacture base
S6 ± Hard working quality people W6 ± High operating costs
Opportunities Maxi-maxi (strengths/opportunities) Mini-maxi (weaknesses/
O1 ± Spring board to China (F) S1S2O1 ± Promote commerce opportunities)
O2 ± Unstable Asian politic activity (F) W3W5O2 ± Financial/service
O3 ± Support from China (F) S1S2O2 ± Attract foreign/ focus
O4 ± Birth of EURO Chinese investment/tourism (F) W4O4 ± Diversify governmental
O5 ± 50th anniversary of China (F) S1S2S3O4 ± Asian joint currency investment
(F) S1S2O3 ± Intensify financial (I) W1O1 ± Restructure executive
service (currency window) council
(C) S1O1 ± Advisory role to China (L) W2O3 ± Multiple languages
(C) S3O1O3 ± Co-operation with policy
China to develop hi-technology
(C) S1S2O5 ± Promote tourism.
(L) S4O1O3 ± Cross-training with
Chinese government
Threats Maxi-mini (strengths/threats) Mini-mini (weaknesses/threats)
T1 ± Inrush of immigrant (C) S3T4 ± Promote environmental (C) W3T5 ± Develop a natural
T2 ± From neighbouring countries protection concept to China. resource link between Hong Kong
T3 ± Millennium bugs (Y2K) (C) S1S2T6 ± Media businesses. and China
T4 ± Pollution of water from China (I) S1T1 ± Review immigration law/ (C) W5T1T5 ± Develop Chinese
T5 ± China opening up to the world co-operation with related Chinese medicine research centre
Market authorities (I) W3T1 ± Review tax policy and
T6 ± Declining world economy (I) S3S4T2 ± Improve quality image social welfare policy
of Hong Kong. (L) W2T5T6 ± Improve English
(I) S3S4T3 ± Y2k promotion education standard
campaign
(L) S3T1 ± Build new schools for
immigrants
(L) S3S6T5 ± Bilingual education
Notes: F = Financial perspective, C = Customer perspective, I = Internal process perspective, L = Learning and
growth perspective

[ 71 ]
S.F. Lee and Andrew Sai On Ko process deployment. It is the development of satisfactory to customers can be handled
Building balanced scorecard an operating mechanism to transform using existing procedures and processes. In
with SWOT analysis, and customers' expectations into specific design addition, the QFD process causes the
implementing ``Sun Tzu's The
Art of Business Management and manufacturing requirements (Straker, company to focus on customer requirements
Strategies'' on QFD 1995). that for which the products are not currently
methodology QFD employs mathematical analysis using competitive. This effective application tool
Managerial Auditing Journal a series of matrices, which depend on should be combined with TQM.
15/1/2 [2000] 68±76 functional relationships, to arrive at the In the management aspects, QFD also
highest level of quality in producing a helps:
product. Through the analyses of the various . Identify and prioritise customer needs
relationships of functional components, one obtained from every possible source.
is able to quantify quality and establish . Analyse the details of design and process
priorities. It is also commonly known as a improvement meeting the needs of
process that provides structure to the engineers.
development cycle and helps an organization . Stimulate continuous improvement.
plan for the effective use of the other . Encourage communication and build
technical tools to support and complement teamwork within an organization.
each other and address priority issues. It can . Reduce lead-time, optimise engineering
pinpoint the areas of customer concern resources and improve quality.
where the specialised tools can have benefit. . Build partnerships with customers'
Actually, QFD is not just a tool but also a participation.
planning process.
QFD is defined by Dr Yoji Akao as:
Converting the customers' demands into
quality characteristics' and developing a
6. The link between the balanced
design quality for the finished product by
scorecard and quality function
systematically deploying the relationships deployment
between the demands and the characteristics, Traditionally companies have operated on
starting with the quality of each functional the basis of management by results, which is
component and extending the deployment to a behavioural science. Typical management
the quality of each part and process. The will establish objectives. Then the objectives
overall quality of the product will be formed will be evaluated by measuring the
through this network of relationships performance and the results; that is objective
(Mallon et al., 1993):. management. The top management is only
QFD integrates matrices and charts into a interested in the end of quality improvement,
system to realise customer requirements, the results only. The methods, systems or
functions, quality requirements, parts resources needed to achieve results are
definition, break-through methods and usually left to the ingenuity of the middle
manufacturing methods. QFD uses matrices management or engineers. Policy
to identify and prioritise elements relating to management, therefore, is a strategy to
intersecting concepts of customer ensure results by focusing on the means
requirement or quality characteristics, as opposed to measuring performance after
quality requirement/cost, function/ the fact (Sullivan, 1988). Policy management
reliability, and so forth. will take the form of a business plan to
QFD also shows all the information to the overlay existing systems and transform
project that helps the organization set the management focus from results to the
target or determines the priority of action means of achieving the results. Policy
needed to be taken. In addition, the matrix management is structured as a method to
compares the product or service with achieve company business or policy
other competitive products or services so objectives. The means to achieve becomes the
that the organization can make primary focus and results measure only how
improvements in the previous stage of well policy management was carried out
design. The main goal of QFD is to increase (Sullivan, 1988). Organizations can apply
customers' satisfaction by improving their QFD as a strategic planning tool (Maddux
own quality and by exciting the customer et al., 1991).
through innovation. Quality function deployment (QFD) is a
QFD helps an organization plan for unique and powerful quality assurance tool
effective application of its quality tools by that is designed to ensure the voice of both
directing the application toward issues of the internal and external customers is clearly
importance to customers. Organizations heard and followed in the development of a
should use the QFD process as one of their product or service (Pitman, 1996). The heart
principal planning tools in their TQM effort. of QFD is its matrix called the ``house of
The selection of priority items for quality'' (HOQ). It is made up of two main
increased customer satisfaction provides a parts, the ``Whats'' and the ``Hows''. When
company with a distinct product focus. The using QFD, the most important tasks are to
customer requirements that are currently define and understand the ``Whats'' ± the
[ 72 ]
S.F. Lee and Andrew Sai On Ko needs of the customers and to define the
Building balanced scorecard ``Hows'' to meet the customers' needs. (Tan, 7. Using Sun Tzu's The Art of War to
with SWOT analysis, and 1998). develop the ``Hows'' of QFD as
implementing ``Sun Tzu's The
Art of Business Management The BSC serves as a powerful tool to define business management strategies
Strategies'' on QFD the ``Whats'' within QFD. However, it does This section presents the 13 books of Sun
methodology not indicate the ``Hows''. Therefore, this Tzu's The Art of War, the principal
Managerial Auditing Journal researcher feels that by linking up the BSC philosophies and the related strategies in
15/1/2 [2000] 68±76
with QFD, will make a more holistic strategic business management environments. The
management system. main themes of the 13 chapters of Sun Tzu's

Table II

[ 73 ]
S.F. Lee and Andrew Sai On Ko are the major sayings of each of the chapters. system can be customised for both profit and
Building balanced scorecard Their equivalent business management non-profit organizations to develop holistic
with SWOT analysis, and strategies are derived and developed for their organizational strategic plans.
implementing ``Sun Tzu's The
Art of Business Management applicability in business competitive QFD has been successfully applied in
Strategies'' on QFD situations. quality management strategic planning. As a
methodology The 13 business management strategies quality management strategic planning tool,
Managerial Auditing Journal form the criteria base of the future QFD is efficient and effective in prioritising
15/1/2 [2000] 68±76 evaluation of the business management the weakness of an organization that the
strategies using QFD methodology which will organization should take action for
help the senior managers identify, prioritise, improvement. It prioritises the importance of
and rectify their positions and situations the activities in the organization that have
quickly. The 13 chapters in Krause's Sun much more concern for customers'
Tzu: The Art of War for Executives (Krause, satisfaction.
1996) were modified to become the Sun Tzu's Having understood the Sun Tzu's
The Art of Business Management. The philosophies, it is essential to identify how
Appendix shows the major business and in what ways these philosophies could be
management strategies derived. applied in business strategies. People in the
By examining the principles upheld by Sun organization have to face all kinds of
Tzu, one can get some beneficial insights in competition. Competitors may come within
strategic management within the world of the organizational constituents as well as
business. The Art of War by Sun Tzu consists individual constituents. Winning or losing in
of 13 chapters and they were applied in a battle is very much based on how effectively
management context by the authors as they manipulate the perceptions and opinions
follows (Lee et al., 1997; 1998): of constituents. Those who have the most
1 Planning ± planning of strategies, accurate and up-to-date information will win.
estimation and leadership. Information will help in the analysis process
2 Competitive actions ± resources and and decision making. The wisdom for the
competitive actions. traditional competition can equally be applied
3 Competitive strategy ± competitive in information competition.
strategy and wisdom.
4 Positioning ± positioning and targeting,
strengths and weaknesses estimation.
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Management, Vol. 15 No. 6. . Understand strategy helps to win
Wassermann, G.S. (1993), ``On how to prioritise competition.
design requirements during QFD planning . Use wisdom and best strategy instead of
process'', IIE Transactions, pp. 59-65. aggressive tactics for success.
Weihrich, H. (1982), ``The TOWS matrix ± a tool . Understand the situation and act flexibly.
for situational analysis'', Journal of Long . Decisions should be taken at appropriate
Range Planning, Vol. 15, No. 2. company level ± more delegation of
responsibility.

Further reading Strategy 4 ± Positioning and targeting,


Hepworth, P. (1998) ``Weighing it up ± a literature strengths and weaknesses estimation:
review for the balanced scorecard'', Journal . Strengthen the internal before
of Management Development, Vol 17, No 8. competition.
Krueger, N. (1998), ``Encouraging the . Attack right to the target and defence
identification of environmental keeps top secret.
opportunities'', Journal of Organizational . Beware of business and situation changes;
Change Management, February.
never be content at the present position.
Lee, S.F. (1998), ``The use of Chinese philosophies
to assist achievement of world-class business
. Careful planning of the whole situation
excellence'', PhD thesis, University of would enable the business under control.
Warwick, UK. Strategy 5 ± Opportunity, timing and
Loh, M. (1998), ``Re-engineering at work'', Journal
management structure:
of Management Development.
McKenzie, F.C. and Shilling, M.D. (1998),
. Good organization helps to define
``Avoiding performance measurement traps: responsibilities.
Ensuring effective incentive design and
. Business tactics require flexible
implementation'', American Management managing policy.
Association, Compensation & Benefits Review, . Move quickly to explore business
Vol. 30 No. 4. opportunities.
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S.F. Lee and Andrew Sai On Ko . Offer some advantages and trap by workforce will benefit and trust each
Building balanced scorecard strategy. other and have good relationship.
with SWOT analysis, and . Right person gets the right job.
implementing ``Sun Tzu's The Strategy 10 ± Competitive situations and
Art of Business Management Strategy 6 ± Control of market situations and causes of failure:
Strategies'' on QFD
methodology climate: . Gain advantages over the competition
. Keep ahead of competition through when they are unprepared.
Managerial Auditing Journal
15/1/2 [2000] 68±76 innovations. . A good manager takes the business
. Know the competitors but not allowing advantage without taking personal fame
them to know you that enabling you to and gain and admitting failure without
concentrate effectively. shirking responsibility.
. If one over-diversify, the business can . Treat your employees as your family and
easily be challenged. Concentrate your they will share your vision.
effort when you are strong. . A skill manager reallocates his resources
. Even though the competition is keen, the without loosing his direction and purpose.
competition can still win by better
understanding of the market requirement Strategy 11 ± Competitive conditions and
and prove successful. offensive strategy, alliance and vision:
. Change constantly according to the . Market situation can be different
changing needs of market situation. according to the way business conducted.
. Business tactics never remain constant . By making market alliance, stronger
and should take any form. market control and strategy will be
obtained.
Strategy 7 ± Management of conflict and . Never attack your competitor when your
avoidance of confrontation: resources are not focused.
. Business competition is most difficult . Skilled managers would advance when it
when confronting competition head-on. was to their advantages and halt when
. There is not only disadvantage but also
situations were unfavourable.
danger in competing for a favourable . Aware of business situation and react
position.
speedily and use innovative approaches.
. Know the potential partner well before . Align the workforce to the vision of the
entering into join venture.
company.
. Motivate your people for a common goal . Company who does not understand the
through good communication.
intention of potential partner cannot form
. Strengthen the organization and plan
alliance with them.
business strategies.
Strategy 12 ± Destroying and decision:
Strategy 8 ± Flexibility and adaptability: . Key to success is recognising good
. Consider both favourable and
unfavourable factors in business. opportunities.
. Fatal weakness of management should be
. Always stay ahead of your competitors.
understood.
. Remain flexible and adapt accordance to
the changing situations.
Strategy 9 ± Observing and manoeuvring: . Build on achievement. Never sit on the
. Take the best approach during difficult present situation and continuous keep on
market condition and stay away from innovation.
difficult situations. . A simple mistake could ruin the whole
. Get away from dangerous situation as business.
quickly as possible.
. Observe competitors' position and plan Strategy 13 ± Intelligence and information:
strategy accordingly would have better
. Ignorant of the competitor's situations is
reaction. danger that may lead to waste of
. Wait until the situation clear before re- resources.
entering into market competition. Good . Achieve extraordinary accomplishments
and accurate decision makes proper by good management of people who
investment in business. clearly understand the market situation.
. Thoroughly understand the market . Use many ways of gathering information
situation to avoid potential problem and from the market.
identify pitfall. . Information gathering is always possible.
. When a competitor has low morale, it . Detail information of the market is
means their leadership is poor. Prestige essential.
and authority of senior management are . Recognise and try to recruit talented
both essential. people to work for your company.
. If everyone do what they should do . Recognise talented people's achievement
diligently, both the management and in your company to achieve great task.

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