HORVTH & PARTNER GmbH Unternehmensberatung BDU Berlin Stuttgart Dusseldorf Munich Munster Budapest Prague Vienna Zurich

rich Office Berlin: +49/30/34 50 65-0 Joachim Esser Florence, May 30 2001

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Balanced Scorecard with Strategic Vision the story of Samsung Corning Germany

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Agenda
1. Short Presentation of SCD 2. Balanced Scorecard to strengthen the SCD Management System

3. Strategic Vision - the backbone of our project

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Samsung Group Structure

Samsung Concern
Samsung Machinery Samsung Chemicals

Samsung Electronics

Samsung Finances

others

Samsung Corning

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Products of SCD

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Samsung Corning TV Glass Factories - Locations

SCD (GERMANY)

SUWON PLANT KOREA KUMI PLANT SHENZHEN PLANT (CHINA)

TIJUANA PLANT (MEXICO)

SCM (MALAYSIA)

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Company History

1973 Foundation in Korea as Joint Venture between Samsung and Corning Inc. 1975 Production of Black and White TV Glass in Suwon 1983 Production of Color TV Glass in Suwon 1988 Production of ITO Glass* in Kumi 1989 Production of Soft Ferrites** in Kumi 1992 Production of Soft Ferrites in China 1993 Production of Color TV Glass in Malaysia 1994 Foundation of SCD by taking over FGT GmbH 1996 Production of Specialty Glass*** for TFT LCD in Kumi (SCP) 1998 Foundation of Joint Venture (SSG) for Color TV Glass in China 1999 Production of Color TV Glass in Mexico (VMM)

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Presentation of SCD

Name: Equity: Representative: Foundation: Employees: Ground: Floor space:

Samsung Corning Deutschland GmbH 100% Samsung Corning Korea Ju Hwan Jin, President March 1, 1994 700 285.601 m 74.200 m

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Agenda
1. Short Presentation of SCD 2. Balanced Scorecard to strengthen the SCD Management System 3. Strategic Vision - the backbone of our project

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Translating a Vision and Strategy into the Four Perspectives of the BSC
How should we appear in the eyes of our shareholders?

Finance
Strategic Measures Targets Goals Actions

Customers
How should we appear in the eyes of our customers?
Strategic Measures Targets Goals Actions

Internal Processes Vision and Strategy

At which processes do we need to excel?
Strategic Measures Targets Goals Actions

Learing and Development

How do we Strategic make ourselves Goals capable of change and improvement?
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Measures Targets

Actions

vgl. Kaplan / Norton (1996)

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Project Planning

P roje c t planing B S C S ams ung C orning D e uts c hland D ays B eginning of the B S C 's process C reation of a globalB S C S tep 1: setting of strategicalpriorities S tep 2: goals and cause / effects (W S 1+ 2) S tep 3: perform ance m easures S tep 4: values of the goals (W S 3) S tep 5: program of actions beginning of im plem entation (W S 4) T otal 3 4 5 4 2 4 3 25

Es 1

GP 2 4 4 4 2 4 2 22

S eptem ber O c tober N ovem ber D ec em ber 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

1 3

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Organisation of the BSC-Building up process

Managementteam

Mr. J. H. Jin Mr. D.J. Kim Mr. T.K. Lee Mr. S.H. Bae Mr. H. Schmerder

Samsung Corning Deutschland Samsung Corning Deutschland Samsung Corning Deutschland Samsung Corning Deutschland SamsungCorning Deutschland

President Director Admin. Adv. Production Director Sales Dev. Manager TC

Mr. V. Henzel Samsung Corning Deutschland

Plant Manager

Mr. J. Peschke Samsung Corning Deutschland

Dev. Manager Innov.

BSC Supportteam

Mr. S.W. Lee Mr. Dr. A. Deckmann

Samsung Corning Deutschland Inno Horvth & Partner

HR

Dr. Olaf Seidel Samsung Corning Deutschland

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SCD Vision

SCD believes that highly motivated employees are the base for our success

Top performance in productivity and marketorientated quality is our standard

We achieve highest customer satisfaction compared to our competitors

We rise our market share by offering attractive products

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Clarification of strategic goals

al tern 1 in 3.1. rnal exte ol 2 To 3.1.

5.1 Estimation of actual state 5.2 Trend analysis

5 Pl of ing ann pr nce pete com ofile

; tion clina 1 In

3.1 Organization 3.2 Content - universal vs. specific 3.3 Quantity/Quality 3.4 Performance measurement 3.4 Job-Rotation

1.1 Individual demand

g inin r tra rthe 3 Fu

5.3 Target profiles

Development and full exploitation of our employees abilities Benefits of the goal: b1 Attendance b2 Staff turnover b3 Suggestions for improvement b4 Efficiency improvement b5 Higher conformity of actual with target abilities

ities Abil

5.4 Related to function/ department

1.2 Analysis of potential

emp loye es obje ctive s

luen ces

6 Ex tern al in f

4D efin ition of

6.2 BMW, etc. Sitings

4.2 Bottom-Up-Feedback

2.3 Salary 2.4 Status 2.5 Workplace design

4.3 medium-term planning of further development

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2 St aff s atis fact ion

6.1 Job situation; Labor market data

4.1 Performance measurement (Top-Down)

2.1 Transparency of management decisions 2.2 Acceptance of social services

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Redefinition of staff dialogue

C o m m u n i c a t i o n
Employee evaluation (applying a universal/specific set of measures) Joint Target setting (individually)

Challenge (top down)

Change

Medium-range development planning Qualification program (standard/individually decided modules)

Challenge (bottom up)

Evaluation of SCDs attractiveness as employer

Evaluation of management capabilities

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Measures follow strategy

Preferred Suppliers Items
Price Quality Flexibility Reliability (...) (...) Relevance
very high high low very low

SCD
excellent good improvable bad excellent

Other
good improvable bad

Which new demands arise concerning your TV glass supplier?

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Agenda
1. Short Presentation of SCD 2. Balanced Scorecard to strengthen the SCD Management System 3. Strategic Vision - the backbone of our project

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Major advantages of SAS Strategic Vision

Easy to use Total integration of cause and effect analysis Drill-Down throughout the different levels wide variety of communication and information opportunities / interactivity flexible graphical visualization (user front end) Totally web enabled Easy and extensive Data Management Interface to all current sytems

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