“The balanced scorecard helps us to identify objectives and measures, while 6 Sigma serves as an effective tool for operation improvement helping us to achieve our BSC objectives and measures. Both enhance our ability to execute our strategy.” Zhu Junsheng, VP of BaoSteel, said in a speech in Balanced Scorecard Asia Summit in Shanghai in September, 2006.
Baoshan Iron and Steel Co., Ltd. is the largest and most advanced Iron and Steel producer in China. The company produces high value-added steel products, such as automotive steel, and oil and gas exploration and transportation steel. World Steel and Iron Industry Directory ranks BaoSteel as the No. 3 most competitive company in the industry, and regards it as having the greatest potential as a future producer of steel and iron products.
In the past few years, BaoSteel has successfully implemented a series of projects in manufacturing and quality assurance, including 6 Sigma, ERP, and process restructuring. To succeed strategically, the executives know they need an effective strategy performance management tool.
In order to drive the company to new levels of achievement, BaoSteel appointed eGate to implement a full-scale strategy performance project and to integrate 6 Sigma with Balanced Scorecard.
Facing increasing competition in the industry, global resource scarcity, and increasing cost of steel production, BaoSteel successfully implemented BSC to enhance its strategic performance management system. The company devoted great efforts to standardize management across the group, streamline processes, enhance technology innovation, push for reformation and M-and-A in the steel industry, and promote clean and energy saving production. Balanced Scorecard helped BaoSteel significantly improve its ranking in the Fortune 500 for 4 years in a row. |