Towards an analytical framework of corporate performance measurement in chemical industry: Balanced scorecard perspective

Taiwan is facing a borderless world in terms of economic competition in this age of globalization marked by rapid changes in both domestic and international environments. Its petrochemical industry needs to map out a strategy to boost its competitiveness so that the industry will maintain continued growth. This paper studies three major groups: senior managers in the petrochemical industry and balanced scorecard experts engaged in the industry's daily operations, employees working in the petrochemical industry; and scholars and experts specialized in the use of balanced scorecard methodology. Following in-depth interviews and a survey with questionnaires and an analysis of the hierarchy process, the study reaches the following conclusions: a perfect system for evaluating business performance must include indicators for evaluating traditional performance as well as indicators for evaluating strategic performance; with regard to the use of balanced scorecards, this paper suggests these three steps. First, set up an evaluation structure for implementing business goals and visions. Second, define strategic goals in order to select suitable antecedent units and to select strategic measurements that can serve as performance indicators in the performance evaluation system. Third, draft an implementation plan which will successfully introduce balanced scorecard to a business organization; with the balanced scorecard, a business organization can translate its business goals and visions into concrete strategies. The balanced scorecard can also be used to gauge if a business organization has achieved its business goals and visions after putting its strategies into effect.