Balanced scorecard as a strategic management tool : the case of Seagull AS

Abstract

Can investments in IT help a company to achieve its overall strategy and vision? Research over several years has resulted in mixed findings but several studies shows that the IT investments actually can result in better performance for companies. To achieve this it is important to align the IT investments with the overall business strategy and vision. The aim of this thesis is to see how Porter’s theories on competitive strategy and Kaplan and Norton’s Balanced scorecard can help the company to specify an IT system for the Operations department. The main idea is that the IT investment will support the overall strategy and vision of the company and create better overall performance. Kaplan and Norton introduced Balanced Scorecard in 1992. The Balanced scorecard is a performance measurement method and also a strategic management tool having four different perspectives to the success of a company. The Balanced Scorecard does not only focus on financial performance, but also includes nonfinancial performance measures and objectives driving towards better performance. The main results of the thesis were that the problems of the company were identified and the corporate vision and strategic objectives were clarified. Objectives and targets at corporate, departmental and technology level have been developed to increase overall performance. The main conclusion of this thesis is that in the case of Seagull AS the Balanced Scorecard can help the company to create better performance. The Balanced Scorecard can help the Operations department to invest in an IT system that supports the overall strategic objectives of the company.