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A reasch of strategy map and dynamic strategy goal of nonprofit organization ---Take Public Television Servive as example

The main idea of strategy map is to compensate for the exceedingly static balance scorecard and to have the four frameworks more logically arranged. Strategic action is a dynamic system existing in the four frameworks of balance scorecard. Policymakers tend to pay too much attention to the variations of the short-time measurements than the long-term structural effect of system. Through time delay and the effect of negative feedback loops, strategic actions may cause the change of loops, leading to some side effects or counterintuition. As a result, managers may fail to correctly analyze situations and make appropriate decisions, have a complete strategic planning, and have the strategic goal expectably achieved.
Public Television Service is a nonprofit corporation with properties of wireless television corporation and nonprofit organization simultaneously. Based on article 2 of the law of PTS, governmental donations of foundations for which a budget is prepared in accordance with this Law shall be reduced by ten percent each year until the third fiscal year; according to article 41, the station may not broadcast business commercials¡K This clause brings about an innate problem that it prevents PTS from raising money by dealing with commercial pursuits. With governmental donations barely increased, improving funds-raising ability has become an important object of PTS. With limited financial resource, PTS requires a dynamic managerial tool to keep its balance between the object of public welfare and the budget.
The purpose of this article is to discuss the dynamic relations among strategic themes, actions and measurements on the strategy map of PTS, and to map the management system by qualitative and quantitative system dynamics. According to the result of secondary data analysis and the interviews, this research constitutes the strategy map of PTS based on strategic themes of four frameworks, modeling each sub-system. After testing, basic simulating and policy simulating, we can then explore the interaction among all sub-systems.
Based on the theory of improving the dynamic alignment of balance scorecard strategy in system dynamics, this research models the system of PTS by intuitional and systematically-thinking methods separately. The results shows: 1. In the systems constructed by BSC and strategy map, dynamic relations exist in each component. Strategies may turn out to be counter-intuitional owing to time delay, and the effects of positive and negative loops. 2. Policy laboratory made by system dynamics can be used to simulate the policies. Leading and lag index of BSC also have dynamic properties. Therefore, when setting strategy goals or KPI, managers have to consider the influence caused by loops and time delay. In addition, the outcome of policy and case simulation reveals: 1. If the quality of TV programs does not progress in company with its service, the system will fall into the crisis of growth limit. 2. Improving service quality one-sidedly may lead to an effect disappointing or being detected after a long time because of time delay. 3. When executing the strategy to improve the quality of TV programs (to increase the budget of TV programs), PTS should manage to raise service capacity and satisfaction to reduce the force of negative feedback loops and maintain the policy effect.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0206106-164821
Date06 February 2006
CreatorsChen, Chun-chi
ContributorsYi-min Tu, Wei-yang Wang, Bo-wen Zheng
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0206106-164821
Rightswithheld, Copyright information available at source archive

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