This thesis is concerned with strategic planning and measurement of effectiveness in the nonprofit sector. First part of the thesis discusses the process of strategic planning in nonprofit sector and methods that can be used by nonprofit organizations to measure effectiveness. Creation and use of the strategy map designed by Kaplan and Norton is also described. In the second part a strategy map is created for a Czech regional gallery and its subsequent use is proposed.

中小企業轉型─以台灣醫療器材廠商為例 / The focus of this study is to discuss business transformation strategies that have been implemented by the case company, a 30-year-old small enterprise in medical market in Taiwan. The case company has been facing strong pressure from the competitive market and this study investigates the environmental causes and drivers that lead to the case company’s business transformation decisions. A case study format was used in this research and environmental factors were first introduced to readers to understand the unique background of medical market in Taiwan then what stimulated the case company’s management to make strategic decisions. In order to sustain in the market, the case company had to diversify its product lines in order to share the potential risk of distribution lost and to meet the increasing demands in the elderly related care market. SWOT analysis is used in this paper to exam the case company’s internal and external environments and help to set up strategy plans. Strategy map was used as a guideline to evaluate its transformation processes and suggestions were made for further discussion.

<p>After several years practice and research, companies and researchers have agreed thatmanagement of a company can not only rely on financial performance measures, butnon-financial measures should be also included in the set of tools. One of the mostpopular approaches to solve this problem are BSC (Balanced Scorecard) combiningwith KPI (Key Performance Indicators).Balanced Scorecard has been introduced by Kaplan and Norton in 1992 whichconsists of a set of financial and non-financial measures which are categorized in fourperspectives “financial”, “customer”, “internal processes”, and “learning and growth”.Key performance indicators are financial and non-financial metrics used to help acompany define and measure progress toward goals and KPIs are typically tied to anorganization's strategy through Balanced Scorecard.In this thesis we limit our study to the Mobile Network Operator industry, use casestudy, as the research design, with a combination of quantitative and qualitativeresearch methods. We summarized the limitation of the initial Balanced Scorecard,discussed the demand and benefits of strategy map, researched on principles andcriteria of a suitable strategy map. Ultimately, we formulated the process of how todesign a strategy map.In practice, after several years of dramatic development, along with the saturation ofthe market and the fierce competitions, mobile network industry stepped into the ageof depression; the sudden huge profits have been over. While a new wirelesstechnology, 3G offers the mobile network operators (MNOs) a new chance toimprove their value added services with high speed bandwidth from 3G technology,and make more profit from it. European 3G markets is the most competitive anddeveloped now, while the Japan 3G was already in an advanced level. In the recentyears, China as the biggest developing country also wants to start the 3G market.With the defined KPIs, we benchmarked the performance of China Mobile to thethree world’s leading MNOs, Vodafone, “3”, and NTT; ascertained the situation ofChina Mobile, set goals and discovered the cause-effect linkage of the KPIs, andfinally formulate a strategy map for China Mobile according to the analysis. Thestrategy map is based on four perspectives, financial, customers, internal and learningand innovation perspectives, and in each perspective, practical solutions which arebased on their strengths and weaknesses are provided. With the help of this research,the company can trace their problems and find the solutions for them.</p>

<p>Problem: Hur en verksamhet skall styras har länge varit föremål för debatt. Kaplan och Nortons balanserade styrkort har sedan mitten på 1990-talet varit populärt då även mjukare värden (kund-, process- och lärandeperspektiv) synliggörs. På senare år har de kompletterat diskussionen om styrmodeller med en strategikarta. Denna strukturerar upp arbetet med att bryta ner de övergripande strategierna till konkreta handlingsplaner. I första hand är strategikartan tänkt som ett komplement för att ge ett strategibaserat underlag till styrkortet men har i många fall ersatt styrkortet genom att fungera som ett fristående styrsystem.</p><p>Syfte: Syftet med denna uppsats är att beskriva och analysera det stöd som styrmodellerna balanserade styrkort och strategikartor kan ge vid styrningen av en verksamhet. Ett delsyfte är att diskutera vilka synergieffekter som kan uppstå vid parallell användning.</p><p>Metod: Författarna har genomfört en fallstudie i Eskilstuna kommun. Insamling av data har gjorts med kvalitativ metod. Semi-strukturerade intervjuer har genomförts med tre respondenter i chefsposition på kommunen. En ostrukturerad intervju med respondent på Stratsys AB har kompletterat undersökningen.</p><p>Resultat: Eskilstuna kommun har nyligen infört ett styrsystem från Stratsys. Systemet baseras huvudsakligen på den strategibaserade strategikartan men med ett mindre inslag från styrkortet. Tidigare har en förvaltning använt styrkort som styrsystem. Kommunen har trots goda erfarenheter av styrkortet valt att utveckla detta till strategikartor. Kommunledningen ser gärna en parallell användning men förvaltningen anser att det administrativa arbetet skulle bli för omfattande. Vår undersökning pekar på att systemen ger olika typer av stöd till styrningen. Enligt de teoretiska utgångspunkterna kompletterar de varandra och dessutom har vi definierat ett antal tänkbara synergieffekter. Ett pilotprojekt i nämnda förvaltning där de bägge system används parallellt bör därför startas.</p> / <p>Problem: How to manage a business is a subject that has been debated for a long time. Since the middle of the 1990´s the Balanced Scorecard of Kaplan and Norton has been popular because of its consideration to different values (customer-, internal- and learning and growth perspective). Recently these authors have complemented the debate about management systems with the Strategy Map. It structures the work by breaking down the overall strategies to concrete activities. The Strategy Map is supposed to complement the Balanced Scorecard but has in many cases replaced it by working as a self-contained management system.</p><p>Purpose: The purpose of this thesis is to describe and analyze the management support that is possible to derive from Balanced Scorecards and Strategy Maps. A sub purpose is to discuss the synergy effects related to parallel operating.</p><p>Method: The authors have carried out a case study at Eskilstuna kommun. A qualitative method has been used when collecting data. Semi structured interviews has been conducted with three executives at Eskilstuna kommun. One unstructured interview with a respondent at Stratsys AB has complemented the investigation.</p><p>Result: Eskilstuna kommun has recently introduced a new management system from Stratsys. The system is mainly based on the strategy based Strategy Map combined with a minor contribution from the Balanced Scorecard. One administration has used Balanced Scorecard since a few years. Though the council had positive experiences from the scorecard they decided to introduce the use of Strategy Map at all administrations. The council management would like to see parallel use but the administration think the administrative work would be to comprehensive. Our investigation indicates that the systems support the management process in different ways. According to the theoretical sources they complement each other and we have found some possible synergy effects. We therefore suggest a pilot study with parallel use in one administration.</p>

<p>Sammandrag</p><p>Det här arbetet riktar sig till ekonomer i olika företag och även blivande ekonomer som känner till den intensiva debatt som varit kring verksamhetsstyrning och som började med den så kallade Relevance Lost-kritiken. Det balanserade styrkortet som var ett av resultaten av debatten har också diskuterats men till stor del varit okritisk. Styrkortet har fått stor genomslagskraft och verkar ha kommit för att stanna, i alla fall under överskådlig tid. Debatten kring verksamhetsstyrning och det balanserade styrkortet har helt klart minskat i intensitet. Nu har det kommit en fortsättning på det balanserade styrkortet, den strategiska kartan, och den finns det inte särskilt mycket skrivet om. Därför är mitt arbete ett bidrag till diskussionen.</p><p>Mitt syfte är att ge förståelse för de möjligheter, men också för de begränsningar som den strategiska kartan har.</p><p>Värderingen har sin grund i min hermeneutiska kunskapssyn. Jag har därför i metodavsnittet gett en grundlig beskrivning av främst kunskapssyn och hermeneutik. Mitt arbete har varit en litteraturundersökning och därför finns det även ett grundligt avsnitt kring det. För att uppnå huvudsyftet har arbetet skett i tre steg.</p><p>För att skapa förståelse för hur den strategiska kartan är uppbyggd och tänkt att fungera har jag presenterat en rätt fyllig beskrivning av konceptet i det första steget.</p><p>Syftet med det andra steget har varit att få fram utvecklingen av styrning mellan det balanserade styrkortet och den strategiska kartan genom att titta på likheter och skillnader. Jämförelsen har byggt mer på att visa likheter och skillnader i den kunskapssyn som präglar de båda koncepten än på att visa faktiska likheter och skillnader. Detta har jag gjort via Jan Lindvalls beskrivning av idégrunder skiljt från teknik och Anthony G Puxtys klassificering i olika skolor. Jag har med hjälp av tankar jag lånat från dem presenterat åtta likheter och nio skillnader.</p><p>Eftersom jag i steg två visat på likheter och skillnader mellan de båda styrkoncepten kunde jag sedan i det tredje steget göra en värdering trots att det, som jag berättat tidigare, inte finns speciellt mycket skrivet kring den strategiska kartan. Värderingen har gjorts utifrån mina tankar men det behövdes ändå verktyg för att skapa trovärdighet åt dem. Jag har därför använt författare som varit både positiva och negativa och presenterat deras åsikter som komplement till mina. Jag har presenterat sju diskussionsområden. Jag pekar på fördelar och nackdelar men säger inte vad som är bäst. I de flesta fall har jag svårt att se fördelarna för sig respektive nackdelarna för sig och därför känns det bättre för mig att ställa dem mot varandra.</p><p>Min tolkande kunskapssyn gör att jag inte kommer med något facit om den strategiska kartan är bra eller dålig. Jag har däremot insett att det faktiskt har hänt mycket mer än vad jag trodde när jag började arbetet. Kaplan och Norton, som i grunden har ett systemsynsätt som till stora delar är lika som det tekniska, har utvecklats mot en mer tolkande kunskapssyn, vilket syns i vissa delar av den strategiska kartan. Sammantaget känns kartan som ett hjälpmedel för en modernare verksamhetsstyrning, men den är fortfarande endast ett styrverktyg.</p> / <p>Summary</p><p>This work is directed to people who has an interest in the Relevance Lost debate and has knowledge of the intense debate that has been around management control. The Balanced Scorecard that was one of the results of the Relevance Lost debate has also been discussed but mostly in an uncritical way. The scorecard has had great penetrative power and seems to have come to stay, at least in the foreseeable future. The debate about management control and the Balanced Scorecard has definitely become less intense. Now there is a continuation of the Balanced Scorecard, the Strategic Map. There is not very much written about it. That is why my work is a contribution to the discussion.</p><p>My purpose is to give understanding for the possibilities and the limitations of the Strategic Map.</p><p>The valuation has its roots in my hermeneutic epistemological approach. Therefore I have given a thorough description of foremost epistemological approach and hermeneutics in the part concerning method. My work has been a study in literature and therefore there is thorough part around this as well. To achieve my main purpose the work has been done in three steps.</p><p>To create an understanding for the construction of the Strategic Map and how it’s supposed to work I have in the first step presented a rather rich description of the concept.</p><p>The purpose by the second step has been to produce the development of control between the Balanced Scorecard and the Strategic Map by looking into similarities and differences. The comparison has been built more on showing similarities and differences by the epistemological approach that characterize the two concepts than to show actual similarities and differences. I have used the description made by Jan Lindvall of the foundation of ideas separated from technique and the classification in different schools by Anthony G Puxty. I have with help by thoughts borrowed from them presented eight similarities and nine differences.</p><p>Since I have pointed out similarities and differences between the two concepts in step two, I could make a valuation of the Strategic Map in step three, even though there isn’t much written about it. I have made the valuation out of my own thoughts, but I still needed tools for creating reliability for them. I have used authors who has been both positive and negative and presented their views as a complement to mine. I have presented seven areas of discussion. I point out both advantages and disadvantages but I don’t say what is best. In most cases I cannot see advantages for themselves or disadvantages for themselves. Therefore it feels better for me to put them against each other.</p><p>My interpretive epistemological approach leads to my not presenting an answer whether the Strategic Map is good or bad, but I have realized that it actually has happened much more than I thought when I started my work. Kaplan and Norton who basically has a systems perspective, which in most parts is similar to the technique perspective, have developed to a more interpretive epistemological approach. That is shown in some parts of the Strategic Map. As a whole the Strategic Map feels like a tool for a more modern management control, but it is still just a control tool.</p>

Sammandrag Det här arbetet riktar sig till ekonomer i olika företag och även blivande ekonomer som känner till den intensiva debatt som varit kring verksamhetsstyrning och som började med den så kallade Relevance Lost-kritiken. Det balanserade styrkortet som var ett av resultaten av debatten har också diskuterats men till stor del varit okritisk. Styrkortet har fått stor genomslagskraft och verkar ha kommit för att stanna, i alla fall under överskådlig tid. Debatten kring verksamhetsstyrning och det balanserade styrkortet har helt klart minskat i intensitet. Nu har det kommit en fortsättning på det balanserade styrkortet, den strategiska kartan, och den finns det inte särskilt mycket skrivet om. Därför är mitt arbete ett bidrag till diskussionen. Mitt syfte är att ge förståelse för de möjligheter, men också för de begränsningar som den strategiska kartan har. Värderingen har sin grund i min hermeneutiska kunskapssyn. Jag har därför i metodavsnittet gett en grundlig beskrivning av främst kunskapssyn och hermeneutik. Mitt arbete har varit en litteraturundersökning och därför finns det även ett grundligt avsnitt kring det. För att uppnå huvudsyftet har arbetet skett i tre steg. För att skapa förståelse för hur den strategiska kartan är uppbyggd och tänkt att fungera har jag presenterat en rätt fyllig beskrivning av konceptet i det första steget. Syftet med det andra steget har varit att få fram utvecklingen av styrning mellan det balanserade styrkortet och den strategiska kartan genom att titta på likheter och skillnader. Jämförelsen har byggt mer på att visa likheter och skillnader i den kunskapssyn som präglar de båda koncepten än på att visa faktiska likheter och skillnader. Detta har jag gjort via Jan Lindvalls beskrivning av idégrunder skiljt från teknik och Anthony G Puxtys klassificering i olika skolor. Jag har med hjälp av tankar jag lånat från dem presenterat åtta likheter och nio skillnader. Eftersom jag i steg två visat på likheter och skillnader mellan de båda styrkoncepten kunde jag sedan i det tredje steget göra en värdering trots att det, som jag berättat tidigare, inte finns speciellt mycket skrivet kring den strategiska kartan. Värderingen har gjorts utifrån mina tankar men det behövdes ändå verktyg för att skapa trovärdighet åt dem. Jag har därför använt författare som varit både positiva och negativa och presenterat deras åsikter som komplement till mina. Jag har presenterat sju diskussionsområden. Jag pekar på fördelar och nackdelar men säger inte vad som är bäst. I de flesta fall har jag svårt att se fördelarna för sig respektive nackdelarna för sig och därför känns det bättre för mig att ställa dem mot varandra. Min tolkande kunskapssyn gör att jag inte kommer med något facit om den strategiska kartan är bra eller dålig. Jag har däremot insett att det faktiskt har hänt mycket mer än vad jag trodde när jag började arbetet. Kaplan och Norton, som i grunden har ett systemsynsätt som till stora delar är lika som det tekniska, har utvecklats mot en mer tolkande kunskapssyn, vilket syns i vissa delar av den strategiska kartan. Sammantaget känns kartan som ett hjälpmedel för en modernare verksamhetsstyrning, men den är fortfarande endast ett styrverktyg. / Summary This work is directed to people who has an interest in the Relevance Lost debate and has knowledge of the intense debate that has been around management control. The Balanced Scorecard that was one of the results of the Relevance Lost debate has also been discussed but mostly in an uncritical way. The scorecard has had great penetrative power and seems to have come to stay, at least in the foreseeable future. The debate about management control and the Balanced Scorecard has definitely become less intense. Now there is a continuation of the Balanced Scorecard, the Strategic Map. There is not very much written about it. That is why my work is a contribution to the discussion. My purpose is to give understanding for the possibilities and the limitations of the Strategic Map. The valuation has its roots in my hermeneutic epistemological approach. Therefore I have given a thorough description of foremost epistemological approach and hermeneutics in the part concerning method. My work has been a study in literature and therefore there is thorough part around this as well. To achieve my main purpose the work has been done in three steps. To create an understanding for the construction of the Strategic Map and how it’s supposed to work I have in the first step presented a rather rich description of the concept. The purpose by the second step has been to produce the development of control between the Balanced Scorecard and the Strategic Map by looking into similarities and differences. The comparison has been built more on showing similarities and differences by the epistemological approach that characterize the two concepts than to show actual similarities and differences. I have used the description made by Jan Lindvall of the foundation of ideas separated from technique and the classification in different schools by Anthony G Puxty. I have with help by thoughts borrowed from them presented eight similarities and nine differences. Since I have pointed out similarities and differences between the two concepts in step two, I could make a valuation of the Strategic Map in step three, even though there isn’t much written about it. I have made the valuation out of my own thoughts, but I still needed tools for creating reliability for them. I have used authors who has been both positive and negative and presented their views as a complement to mine. I have presented seven areas of discussion. I point out both advantages and disadvantages but I don’t say what is best. In most cases I cannot see advantages for themselves or disadvantages for themselves. Therefore it feels better for me to put them against each other. My interpretive epistemological approach leads to my not presenting an answer whether the Strategic Map is good or bad, but I have realized that it actually has happened much more than I thought when I started my work. Kaplan and Norton who basically has a systems perspective, which in most parts is similar to the technique perspective, have developed to a more interpretive epistemological approach. That is shown in some parts of the Strategic Map. As a whole the Strategic Map feels like a tool for a more modern management control, but it is still just a control tool.

After several years practice and research, companies and researchers have agreed thatmanagement of a company can not only rely on financial performance measures, butnon-financial measures should be also included in the set of tools. One of the mostpopular approaches to solve this problem are BSC (Balanced Scorecard) combiningwith KPI (Key Performance Indicators).Balanced Scorecard has been introduced by Kaplan and Norton in 1992 whichconsists of a set of financial and non-financial measures which are categorized in fourperspectives “financial”, “customer”, “internal processes”, and “learning and growth”.Key performance indicators are financial and non-financial metrics used to help acompany define and measure progress toward goals and KPIs are typically tied to anorganization's strategy through Balanced Scorecard.In this thesis we limit our study to the Mobile Network Operator industry, use casestudy, as the research design, with a combination of quantitative and qualitativeresearch methods. We summarized the limitation of the initial Balanced Scorecard,discussed the demand and benefits of strategy map, researched on principles andcriteria of a suitable strategy map. Ultimately, we formulated the process of how todesign a strategy map.In practice, after several years of dramatic development, along with the saturation ofthe market and the fierce competitions, mobile network industry stepped into the ageof depression; the sudden huge profits have been over. While a new wirelesstechnology, 3G offers the mobile network operators (MNOs) a new chance toimprove their value added services with high speed bandwidth from 3G technology,and make more profit from it. European 3G markets is the most competitive anddeveloped now, while the Japan 3G was already in an advanced level. In the recentyears, China as the biggest developing country also wants to start the 3G market.With the defined KPIs, we benchmarked the performance of China Mobile to thethree world’s leading MNOs, Vodafone, “3”, and NTT; ascertained the situation ofChina Mobile, set goals and discovered the cause-effect linkage of the KPIs, andfinally formulate a strategy map for China Mobile according to the analysis. Thestrategy map is based on four perspectives, financial, customers, internal and learningand innovation perspectives, and in each perspective, practical solutions which arebased on their strengths and weaknesses are provided. With the help of this research,the company can trace their problems and find the solutions for them.

Bakgrund och problem: Det finns mycket litteratur skrivet kring styrning i privat verksamhet, dock glöms den offentliga sektorn ofta bort, trots att styrning krävs även i dessa verksamheter. I denna studie kommer att fokuseras kring styrning i den offentliga sektorn och närmare bestämt i den akademiska världen. Anställda inom akademin värderar ofta friheten att själva kunna organisera sitt arbete högt, vilken kan hämmas av de finansiella begränsningar som dessa organisationer innehar. Här har strategin en viktig uppgift i att visa för de anställda i vilken riktning de ska sträva och få dem att fokusera på rätt saker. Vi ser att de finansiella begränsningarna kan hämma de anställdas frihet och på så vis påverka motivationen negativt. Frågan är då hur de chefer som arbetar närmast de anställda ska kunna styra dem att fortsätta arbeta med bibehållen motivation och samtidigt hålla sig inom de finansiella ramarna. Syfte: Syftet med studien är att undersöka hur första linjens chefer vid Linköpings Universitet styr de anställda att agera i enlighet med den strategi som finns och hur styrningen uppfattas av de anställda. Metod: För att besvara uppsatsens syfte har en fallstudie vid Linköpings Universitet genomförts. Fallstudien har genomförts kvalitativt genom 15 intervjuer på tre utvalda institutioner på den filosofiska fakulteten. Intervjuer har valts för att få en djupare förståelse för ämnet. Slutsats: Vi kan konstatera att chefer och anställda har en relativt lika syn i de flesta frågeställningar vi berört. Vi kan även konstatera att första linjens chefer vid Linköpings Universitet inte behöver styra sina underordnade i någon hög utsträckning då de anställda innehar ett brinnande intresse för sitt ämne och är självstyrande. Inom akademin innehar anställda en stark individualism och självständighet, vilket vi ser tyder på att de anställda inte behöver några tydliga mål för vad de ska uppnå. / Background and problem: There is much literature written on management control in private businesses but the public sector is often forgotten, despite the fact that management is also required in these businesses. This study will focus on management control in the public sector and more specifically in the academia. Employees of the academia often value the freedom to have the possibility to organize their work, which can be inhibited by financial constraints that these organizations hold. Here the strategy has an important role in demonstrating to the employees in which direction to pursue and get them to focus their efforts on the right things. We see that the financial limitations may inhibit employees' freedom and thereby affect their motivation negatively. The question then is how the managers who work most closely with the staff are able to steer them to continue working with the same motivation, while staying within the financial framework. Aim: The purpose of this study is to investigate how the first-line managers at Linköping University control the employees to act in accordance with the strategy and how this control is perceived by employees. Methodology: To answer the purpose for this thesis we have chosen to do a case study of Linköping University. The case study has been carried out qualitatively by 15 interviews in three selected departments at the Faculty of Arts &amp; Sciences. Interviews were chosen to obtain a deeper understanding of the topic. Conclusion: We can say that managers and employees have a relatively similar view of most issues in the thesis. We can also observe that first-line managers at Linköping University don´t need to direct their subordinates to any great extent because the employees have a passion for their subject and are self-monitored. Within the university, staff have a strong individualism and independence, which we see imply that employees don’t need any clear objectives for what they should achieve.

Nowadays, world-wide enterprises have a new situation after the financial crisis in 2008. Environment faced by the enterprises is so sinister that a small mistake may bring fatal collapse. Business strategy becomes an important issue. The business strategy is used to guide the organization and people to the business vision and goals. It makes shareholders, customers, and members know why the enterprise exists, for what and whom they are fighting. Therefore, the first step of the ¡§business strategy management¡¨ is to construct the ¡§business strategy architecture. Business strategy architecture integrates multiple views of an enterprise to achieve the business strategy synergy. Strategy map uses text, graphics, and process-oriented languages to describe the business strategy. However, using these languages to express the business strategy will result in great difficulties of strategy implementation and resources distribution. Because the strategy map is a process-oriented model, it cares more on the organization behavior view and can not integrate with the organization structure view. In this study, we develop an Architecture-Oriented Research & Development Laboratory Business Strategy Model (AORDLBSM) which is based on the six fundamental diagrams of Structure-Behavior Coalescence (SBC) Architecture. AORDLBSM improves the strategy map model in integrating the structure and behavior views. The results of the study show that AORDLBSM is a macro to the micro, from whole to part of the strategy thinking. AORDLBSM integrates organization structure and organization behavior so tightly that it is able to transform implicit knowledge into explicit knowledge. We conclude that AORDLBSM is a description tool that can transform the abstract concept into a real system that enables the organization and people accomplish strategies successfully.

Abstract Strategy Map shows the cause and effect relationships diagram which is selected the goal projects of four perspectives from Balanced Scorecard (BSC) , it is a more advanced managed tool than BSC. But both have not contained the feedback circulation of the strategies also fail to judge and prove the influence of events¡¦ time delays , they are unable to simulate the complicated environment, to lack the strategy¡¦s simulation, and not to inspect the impact on performance of the strategy further. This research proceeds case study with the method of System Dynamics and uses ¡§the strategy¡¦s goal planning and dynamic decision procedure¡¨, it launches the case¡¦s Strategy Map and Balanced Scorecard then proceeds System Dynamics modeling, simulation , testing and analyzing, and proposes the conclusion of this research. This research discovers mainly as: 1. The use of Strategy Map and Balanced Scorecard can help system Dynamics to make the system boundary conveniently while the enterprise¡¦s strategy model are developing. 2. Strategy Map and Balanced Scorecard are static, simple, without positive and negative relationships, and one-way causality link from bottom to top. They pay close attention to the short-term goal and neglect the long-term goal, also don¡¦t consider the time delays, but System Dynamics can make up their deficiency. 3. The levels and auxiliaries of System Dynamics Model Structure can assist the measures of Balanced Scorecard to be instituted and be discussed. 4. The system thinking from System Dynamics can prove general objective and intuitional thought, also can get counterintuition. 5. Each KPI of Balanced Scorecard only knows the ¡§up and down¡¨ change in itself, doesn¡¦t understand the dynamic colloction between each other, from System Dynamics simulation can tell the influence of each other KPI. Finally, propound 5 points of this research: 1. To integrate the theories of strategy management for application. 2. To explain the changeful meaning of the performance indicator and to strengthen the performance management. 3. To assist the examing of the strategies to obtain proper decision. 4. To find the counterintuition which can help enterprises to dig unexpected questions out of the objective intuition. 5. To analyze the revenue of the strategy actions and the cost benefit, also to help the system of the budget and the strategies estimate.