创造价值：通过平衡计分卡导向全面质量管理

Value-CreationthroughtheBalancedScorecardOrientedTQMConcept(Authors:Dr.MikeC.K.LamandMr.Q.S.Ren)BeijingWesternConsultants(bscchina)AbstractThispapertriestosolvesomeoftheissuesconcerningtotalqualitymanagement(TQM).Firstly,whatdoesaTQM(businessexcellence)concept/modellooklike?AretheseTQMconcepts/modelstheoreticallysound?WouldthejudgingframeworksandcriteriaofsomequalityawardssuchasHongKongManagementAssociation(HKMA)QualityAwardbetheTQMconcepts/models?Secondly,areTQMmodelsrelatedtoothermanagementconceptssuchastheBalancedScorecard(BSC)?ThirdlycouldweintegratetheTQMconceptwithBSCframeworktoformavalue-addingconcept?ThemainaimofthispaperconcernswiththeprocessesofbuildinguptheBalancedScorecardOrientedTQMconcepttheoretically,forwhichthebasesareconjoiningtheKanji’sTQMmodelandtheframeworkoftheBSCwithreferencetothejudgingframeworkandcriteriaofHKMAQualityAward.BasedontheconceptofSystemsTheoryandmodelbuildingtechnique,firstlywetriangulatedtheKanji’sTQMmodelandtheBSCframeworktofitintotheSystemsTheory.Secondly,wecomparedthesetriangulatedmodelswithreferencetothejudgingframeworkandcriteriaofHKMAQualityAwardsystematically.Thirdly,afteranalysis,weproposedtheBSC-OrientedTQMconceptanditsconceptmappingforreferenceandfurthertestingintherealworld.Theexpectedoutcomesofthisresearcharesolvingtheabove-mentionedresearchproblems.TheultimateaimofthisresearchistoformtheconceptualmodelofBSC-OrientedTQMconceptforfurthertestingbypractitionersandacademicsofTQMinordertogainmoreconcreteexperiencesorthemanagementknowledgeoftheworld.IntroductionTheoriginalortraditionalapproachesofqualitymanagementwereverymuchprocessoriented.WiththeadventofTotalQualityManagement(TQM),organizationsbegantofocusontheneeds(requirements)andwants(exceedingtherequirements)ofcustomersbothexternallyandinternally(Wilkinson,1992).Thereisnodoubtthattheissueof‘customers’becomesthefociofallkindsofmanagementtoolsandconcepts.Ontheotherhand,oneofthebasicconceptsofTQMisthesystemstheory(input-process-output).Thatistosay,theinputs-processes-outputs(activities)ofanorganizationareaimingatthefulfillmentoftheneedsandwantsofthecustomerssuchastheconceptof‘Todelightcustomers’,whichistheinputorstartingpointofthewholevalue-addingchainofbusinessprocessessothattheoutputsare‘customers’satisfaction/delight’andthusthefinancialperformance.Ifweacceptthissimplelogicofdoingbusinesses,westillhavetosolve,atleast,twomajorissues.Firstly,letusassumethatweknowourcustomersthoroughly.However,inaccordancewithAnsoff(1984),‘Strategyisaconceptofthefirm’sbusiness,whichprovidesaunifyingthemeforallitsactivities.’Theproblemishowcouldweorganizealltheactivitiesofanorganizationunderaunifyingtheme,whichis,thestrategyofanorganization?Secondly,eventhoughanorganizationhasstrategy,howcouldweknowtheimplementationofthestrategyisright?TheanswerofthesetwoissuesliesonthestrategicmanagementofanorganizationwiththehelpoftheBSC.AccordingtoKanjiandAsher(1995),theultimateaimofTQMistoachievebusinessexcellence(companyperformance)suchasfinancialandnon-financialresults/measures.However,fromourconcreteexperienceandobservationandreflections,thepractitionersandacademicsofTQMarefacingmanyproblems.Tonameafew,firstly,whatdoesaTQMconcept/modellooklike?WouldthejudgingframeworksandcriteriaofsomequalityawardssuchastheMalcolmBaldrigeNationalQualityAward(USA)orHongKongQualityManagementAssociationQualityAward(hereafterwecallHKMAQualityAward)betheTQM(businessexcellence)concepts/models?Secondly,aretheseTQMconcepts/modelstheoreticallysound/based?Theresearchersofthispaperhavebeeninvolvingtheresearch,training,educationandimplementationofTQM(Kanji,1998)andtheBalancedScorecard(Kaplan&Norton,1992,1993,1994,1996a,1996b,2000)tovariousclientsinChina,ofcourse,includingHongKongSAR(seebscchina).We(includingourteamsofconsultants)haveboththeexplicit(codified)andtacit(uncodified)knowledge.Basedonourpracticesoftheconceptof‘Ba’(NonakaandKonno,1998),whichisaknowledgecreationprocess,andKolb’sExperientialLearningCycle(Kolb,RubinandMcIntyre,1979),weadvocatethatitishighlylikelytointegrate”or“conjoining”theframeworkoftheBSCwiththeTQMmodelssuchastheKanji’sTQMmodel(1998)withreferencetotheframeworkandjudgingcriteriaofHKMAqualityawardasakindofTQM(businessexcellence)conceptforreference.TheexpectedresultofthisresearchissolvingthestatedresearchproblemsofthispaperandtheultimateaimistoformtheconceptualmodelofBSC-OrientedTQMconceptforfurthertestingbypractitioners&academicsofTQMandBSCinordertogainmoreconcreteexperiences.(PleaserefertoFigure1)BackgroundoftheStudyTheauthorsofthispaperhavebeeninvolvingtheresearchandtheimplementationofTQM(LamandYu,1999,2001),andtheBSC(Lam2002a,b,c)fortenyears(concreteexperience).Moreover,theauthorshavebeenresearchingthetheoreticalbasesofsomeTQMmodelssuchasKanji’sTQMmodel.BasedontheKolb’sExperientialLearningCycle(PleaserefertoFigure1),theauthorsdiscovered(ObservationandReflections)thattherearemanysimilaritiesbetweentheKanji’sTQMmodelandthebasiccriteriaofvariousqualityawardsandtheframeworkofBSC.TheauthorsofthispaperattempttobuildontheconceptofBSCandKanji’sTQMmodel,forwhich,comparedtothejudgingframeworkandcriteriaofHKMAQualityAwardtoformtheBSC-OrientedTQMconcept(FormationofAbstractModel)forfurthertesting.Thedrivingforceofthisresearchisthenotionof‘valuecreationoradding’asweobservedthattoomanyorganizationswastedtoomuchresourcesofusingdifferentkindsofmanagementtoolsorconcepts.Itwouldbeverymuchvalue-addingifwecouldconjoinfewmanagementtoolsorconceptsunderoneconceptormodelsuchastheBSC-OrientedTQMconceptweproposedinthispaper.TheultimateaimistoinvitepractitionersofboththeTQMandBSCtotesttheproposedconcept/modelandcontributingtothemanagementknowledgeoftheworld.属Me巨th缠od锡ol计og于y晓Ba川se亦d拘on皂t参he粒s匆im风pl为e无co袭nc毁ep讯t挂of粗S既ys肥te婆ms嚼T括he拾or背y挂(I受np戴ut樱-P哄ro扩ce罗ss拣-O耗ut睛pu该t)芬a恶nd摘m多od惹el之b钉ui裙ld达in颤g智te顶ch译ni堪qu亲e,炭f荒ir志st薪ly顺w遵e就re唇ar白ra促ng仆ed拴o颤r慢tr池ia氏ng焰ul开at关ed暗t镇he把K士an乘ji偶’s重T泼QM免m巴od炮el锤a五nd店t背he末B屋SC垂f府ra痰me唉wo兰rk宣t夹o冰fi服t痒in情to我S沿ys火te枕ms纤T拘he伤or赢y.退S工ec唇on物dl狐y,捉w鲜e西th劳eo通re艰ti庆ca淋ll尽y顿co兰mp创ar劫ed胜t内he聪se握t大ri羽an生gu签la戴te羽d安co婶nc勇ep枯ts捆s坏ys伸te虫ma竖ti盏ca动ll奶y.夹T拜hi誓rd决ly夏,艇af桨te歼r牺an里al处ys骑is落,痕we她p短ro因po允se旗d独th掏e去BS倦C-尘Or搞ie王nt霸ed质T经QM巡c妻on岔ce螺pt沟f揭or岁r桂ef肉er位en元ce府a谈nd肠f稀ur滚th怕er胃t埋es配ti械ng虎i牌n溉th让e育re缝al效w竿or直ld塌.奉Li筒te公ra呼tu付re谨R油ev般ie说w太Sy驴st皂em宣s杂Th活eo丝ry劣a危nd舱/o胁r余Mo私de育l菊Bu类il委di滴ng展Ac宫co煮rd怒in栗g难to篇B窄on煎in遗i劳et艳,昆al德.雅(1底99告9)脆,罗re掏al护-w使or惹ld恼p爷ro解bl省em阔s援te圣nd日t苦o谋be腔e顽no假rm犹ou楼sl队y海co场mp瞒le贼x敌su喜ch曲a僻s膨th晶e初pr杯ob无le巾ms争a绣nd否t身he爪m询ai烦n取ai丘m债of追t沸hi露s崖re押se翠ar索ch萄p翅ap酒er和.蒙Th滔er造e仆ar档e翅li宫te蜓ra榨ll服y倾an指u苦nc耍ou当nt勉ab纱le德n故um崇be专r霞of携i折nh消er贤en盗t叙fa敬ct甜s掀(t霉ac背it松o资r番im渗pl捉ic川it暖k呼no尚wl灭ed尝ge偷)示in贤a拼ny猾e假mp迟ir依ic客al寺s啄it泉ua衔ti固on秩.破Fu厚rt滚he舌r,蹦e蓄ve杰ry脉p堆ot誓en潮ti杜al特c事ou嚷rs焰e馅of钢a挨ct挽io余n撕st奸ar油ts腐a啦c语ha牢in衡o丰f院ca辈us辨e-问an到d-鉴ef农fe兄ct绞o勿r社in茂pu灵t-粉pr杏oc流es巾s-弊ou游tp外ut脱,斗an饶d枕in喇te蜜ra枝ct令io歼n怒th璃at桨l寒og激ic垒al戏ly鼠i借s低wi湿th膀ou柱t突en白d.暮A刊m鼠od派el鬼i旬s低a南si箩mp集li土fi辽ed镰r碎ep蛙re敌se眼nt老at窃io它n此of技a京n汗em产pi康ri痛ca邻l佩si维tu蔑at猛io行n.食T巡he柴o院ri仁gi赤na森l宴ai乌ms粥o求f杀re着se熄ar笨ch简er症s致ar强e宅no累t党to考c宽on挎st哲ru偿ct瞎a蜡m剑od裁el文t创ha瑞t膀is框a培s听cl改os潜e麻as答p粘os茄si斗bl途e祸to故r椒ea论li锤ty染i遵n溜ev女er玻y确as闲pe幅ct枣,州ra奖th畏er悲t交ha沉n,晴r重es狐ea促rc帅he疫rs西w筛an仪t脚th内e墙si熊mp助le榴st谨m尝od放el词t飘ha刺t膝pr欧ed拍ic申ts斑o博ut驻co森me腔s室re欺as县on嚷ab雾ly剧w典el乱l础an次d钟is纲c碎on岭si蛋st雹en乏t埋wi斯th遵e画ff女ec盏ti居ve沃a请ct行io悼n.谋T谈he聋t倘ec扩hn蝶iq仙ue掌f落or臂d筋es菌cr鄙ib税in房g酬an凭d脆re脆la贸ti术ng渡v绍ar点io勾us嫌v棋ar狼ia载bl元es繁s授uc罗h杜as功乞ex介og楚en漫ou段s,跳e善nd悬og哗en仆ou蛮s,暗i老nt烟er死me挤di饭at斩e,炮d燃ec舒is绣io渐n骂an幻d荣ex颜pe射ct罚ed盼p搞er庭fo渗rm辣an扑ce土v艇ar塞ia邀bl仇es文o涌r奶ou批tc洗om额es豆/m党ea讽su胖re咸s宣(a锣s辨pe士r灭Fi公gu推re裕2哄),酷d锣ep罗en顾ds告o咏n属la典rg吵e苦ex瞎te章nd微o沸f稿th脾e宿na紫tu向re群o管f筹th律e登va扑ri尼ab置le逐s.穷T责he直s散im唐pl碑e荡fo义rm骂o酬f万sy戚st照em仿s咳th桶eo明ry首a酒nd绪/o捉r评mo鱼de所l树bu咬il或di侍ng意i谣s栏as伸f队ol您lo音ws减:建塌线To完ta挎l凑Qu李al渴it苏y镜Ma术na盆ge毅me阀nt投(辫TQ预M)座TQ岸M宰ha央s躁be雪en月w贩id虽el苗y缸ac闷ce穷pt输ed里b比y球th事e观bu养si细ne求ss泼p液ra婚ct型it商io哪ne般rs改a核nd原a虎ca蔑de茂mi湿cs伐t辩o宋im患pr笛ov异e抢th晚e肤qu绣al存it原y,顷i与f搬no赢t疑th炸e直or糊ga尽ni释za末ti沟on沸e替ff绘ec戚ti毛ve暗ne箱ss降,砖of础a午n派or苦ga百ni方za替ti观on钳c栽on腊ti彩nu因ou串sl江y.三H舰ow轻ev环er雨,掌th孟er阵e饺ar倍e谢ma揭ny黎p详ro玩bl瞒em泉s幕of粗a致pp论ly搬in称g废th裙e通pr续in候ci叉pl耽es静o告r派co帝nc刑ep虏ts善o砌f沙TQ欢M忙to芦t鱼he缩r洒ea煎l挎wo僻rl芹d哥si单tu浆at炒io椅ns蛇.动Th邀e识ma葛jo翁r躁pr积ob陕le谨m珠is侨t袖he郑‘贫st室an宫da塞rd重iz劣at爬io滔n’赠o础f梦di倍ff阿er隆en杏t指TQ咳M映mo胳de好ls蝇/律co廉nc佳ep牧ts辜t垄he顽ms过el购ve济s,劫i度f渠no得t要th瓦e毁‘u永ni切fi缴ca狼ti徒on鉴’课of虫v注ar矿io次us架T肝QM市m晌od关el虫s让/士co逝nc暂ep唉t壮s罗.洞(T晒hi厘s岩is越o铲ne市o怖f亏th密e挽ar杠ea贫s,甘w乘hi数ch趣n伍ee肤ds闻f鲜ur宰th艘er蠢r速es灶ea栋rc脾h)愚.日Th离er培e皂ar乖e辅ma更ny趋f称am陈ou暑s感qu司al孝it更y饥gu宅ru战s哨su疑ch照a缺s水Ph奏il伯ip艇.告N兰Cr扔os躬by要(配Fo亚ur迟te蔬en胆s许te琴ps缴t评o疲qu酿al检it携y槐im彼pr娃ov炒em述en冰t)诚,议Jo暑se壮ph援M济J椅ur分an设(塘Te晌n便st见ep骗s贩to柴q弓ua所li涉ty扬i漂mp楼ro顷ve之me监nt风),由a娘nd挠屋Ed广wa魂rd司s紫De启mi扣ng枣(异Fo醋ur测te饱en裂p颂oi还nt投s肃fo亩r诱ma腾na京ge裤me耻nt悦o拉r扮th岗e常fa支mo垫us戒P映la色n–丸Do旁–谣Ch惭ec肺k–园A架ct里/告P储DC姐A刑Cy凑cl吸e)豆.醒L盒ik处e值ma袭ny团o切th慎er炭m驰an诸ag巷em裕en庙t惜co亏nc地ep恭ts纽o甘r砍to派ol煤s,纹T苦QM维d扶oe骄s幅ha育ve升s旱om丈e笼pr静ob邻le魔ms督.设Fi乌rs渴tl扒y,结t邮he康p社hi祖lo唇so里ph挑ie慕s均of罢t横he啊se键g翻ur匆us钢o解r阶th碎ei燕r反“s荡te刻ps淡/服p霞oi镰nt挣s”长a跌re遭n马ot去b房ui腹lt泡o焦n润th泊e姑te搅ch挑ni秒qu唐es惊o头f粮mo你de拾l墙bu鞭il额di塌ng夺a篮s轨su光ch边.戏It魔t剧ak抢es忠t崇im围e虚fo略r董th乱e室fo净ll愁ow会er停s写or开b破el窃ie蒙ve辱rs擦o读f诸TQ盲M狮to伪c偏om散pr导eh团en蔬d赤th觉e捡‘b吗ig罩p残ic央tu关re秤s’械o错f管th讯ei纳r侵pr百of捡ou誓nd危p灿hi丛lo茂so兽ph损ie御s.冬N猴ev晶er艰th玩el炒es悦s,闭f涛or距t胀he迟s识ak叉e寻of路t症he许p英ur绑po罚se绿s声of努t殊hi贝s交re摆se抬ar晌ch锹,鼻we跳d垫el滤ib宽er稿at舒el赌y厅se项le治ct鄙ed洗t短he脖K乘an仔ji太’s称T梢QM乱m谈od巷el役/魔co贱nc弹ep别t母fo参r处fu轿rt阁he盯r异di犬sc叠us出si坊on怎a直nd拼i工nv亿es惨ti维ga患ti示on强,朱as缺i震t蜘is扫e后as圾il誉y贤be及in锤g荒un竹de吹rs尤to某od伪.衰Th里e睬mo捉de斑l辅co糖ns津is街ts肃o掌f旺th倘e个‘p垂ri违me沾’物(L柱ea诱de隐rs伏hi贱p)去,晃fo屑ur筐p观ri尤nc网ip碌le晶s帜(d委el煮ig旧ht删c岗us音to扔me信r,排m间an酒ag农em很en木t脾by央f骂ac劲t,式p猴eo税pl派e-泪ba顶se曲d猾ma汪na博ge哗me坟nt汁a石nd霜c墓on阅ti渣nu茧ou萝s梨im钞pr判ov忠em灾en班t)锋a走nd陕蝶ei恶gh掀t员su秃b-蜜br植ea护kd弓ow峰n炮co德nc颜ep乞ts虎(蓄Pl默ea缓se栏r沾ef疑er避t浅o超Fi猛gu耕re允3钻).中阻As槐w践e位ar龙gu础e每th鹅at流赏th扶e狭ul贩ti测ma淹te狭p热ur耳po推se谅o航f漆al课l申bu晕si饿ne虾ss绍p裳ro催ce劈ss蜻es方数is大a库im凯in圈g皱at芬t华he亲f求ul野fi铲ll愤me泽nt昂o苦f易th植e茫ne确ed挽s卖an纱d尘wa仰nt赠s啄of奥c询us茂to遥me俭rs蝇.轰On惹t腹op布o碌f固th恭e盼tr呀ad潮it吨io鹅na县l热di事vi词si鼓on岗o葬f览cu强st闹om陶er粮s肾in材to可e扰xt盛er沿na拜l骂an奖d踏in怜te窑rn浪al关,特we绕w蜡ou恋ld邀l子ik级e复to享a分dd磁o疯ne阔m循or佳e己di罪me骑ns剃i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ysethevariousvariablesofinputs,carefulmonitoringoftheprocessesandtomeasurethatorganization’sperformance,theoutputsi.e.thesatisfaction/delightofcustomers(nonfinancial)andfinancialmeasures,isessentialifstakeholdersaretoencourageactionsorchanges(continuousimprovement/feedback),whichleadtodesirableperformanceofacompany.Needlesstosay,forachangemanagementconcerningorganizationperformance,asystematicmeasurementoftheperformanceoforganizationsisextremelyimportantforstakeholders,changeagentstoevaluatetheperformanceofanorganization.HavingreviewedtheliteratureconcerningtheTQMconcepts,wecouldfindoutthattheroleofleadershipandstrategicmanagementbecomemoreandmoreimportantinthedevelopmentofTQMmodels/concepts.Therefore,weneedtounderstandthemajorcontentsofstrategicmanagement.Usingsystemstheorytoexplainstrategicmanagement(Hoferat.el,1984;Limerick,CunningtonandCrowther,1993andJohnsonandScholes,1999,KaplanandNorton,1992,1993,1994,1996,2000),theauthorsconcludethatstrategicmanagementcanbebroadlydividedintothefollowingareasasperFigure5:S1.Managementofmeaningistheformulationofmission,vision,corevaluesandgoalsofanorganization.Themainaimistoclarifytheoverallpurposeofanorganization,whichisinlinewiththevaluesandexpectationsofstakeholdersandthedirectiontoachievethepurpose.ThesuccessofS1dependsonleadershipandstrategicmanagement.Thisisoneoftheinputsofthefirst-tier(input-process-output)ofthestrategicmanagementofFigure5.S2.Thestrategicanalysisconsistsofanalyzingtwomajoraspects(ExogenousandEndogenousvariables)withreferencetocustomersthe(internal,external,presentandpotential).S2aistheenvironmentalaudits(Exogenousvariables),whichincludethemacro-environmentalforcessuchasPolitical,Economical,Social,Ecological,Technological,andLegal(wecallitPESTEL)andindustrialauditsuchasPorter’sfiveforces(1979).ThemainaimsaretofindouttheOpportunitiesandThreats,whichaffectacompany’soperations.S2bistheauditofacompany’scapabilitiesandresources(Endogenousvariables)inordertoadapttheenvironmentalorindustrialchanges.ThecommonlyusedtoolssuchasPorter’svalue-chainanalysis(1985)orthewell-knownBCGproductportfolioanalysis.Themainaimsaretounderstandacompany’sStrengthsandWeaknesses.ThesearethemajorinputsofthefirsttierofthestrategicmanagementofFigure5.S3.Thestrategicchoice,whichisthestrategyformulationprocessesinreferencetothecustomersofacompanyandothervariablesofS1&S2.ThecommonlyusedtoolisSWOTorTOWSanalysis(Weihrich,1982,1999).Themainaimistodecidewhichstrategiesshouldbepursuedorimplemented.Moreover,itisextremelyimportantifonecandeterminehowthestrategiesortheoutputscanbeassessed.WiththeadventofBSCframework,theissuecansolvethisissue.(Lam,2002b)S4.Thestrategicimplementationistheprocessesofimplementingthedefinedstrategies.SincethestrategiesofanorganizationaredevisedbyS1toS3,thestrategiesortheoutputsofthepriorsystems(S1toS3)becometheinputsofthesubsequentsystemsi.e.strategicimplementation(S4)andstrategiccontrolandcontinuousimprovement(S5)ofthetwo-tiersystemsofstrategicmanagementasperFigure5.ThesuccessofS4dependsonmanyelementssuchastheproficienciesofusingmanagementtools,forexample,BusinessProcessReengineering(BPR)Benchmarking,TQMandBSC.S5.Strategiccontrol(theperformance)andcontinuousimprovement(feedback)aretheoutputsaswellastheinputsofthewholetwo-tiersystems.Strategicimplementation(S4)istheprocessesofthecurrentsystemsandthestrategiccontrolorperformancebecomestheoutcomeoroutputofthetotalstrategicmanagementsystems.Andthenthefeedbackloop(thecontinuousimprovementofTQMorthelearningandinnovationofBSC)becomestheinputoftheentirestrategicmanagementsystem,whichgoesonandon.IfthereadersofthispaperacceptedourargumentsthattheconceptofTQMandBSCframeworkareveryimportantinstrategicmanagement,mostoftheorganizationsarehierarchicalandtheresponsibilitiesofstakeholderscouldbebroadlydividedintothreelevelsontopofstrategicmanagementandleadershiparethemajorresponsibilitiesofleadersortopmanagement,wecouldsummarizetherelationships,particularlythechainofinputs-processes-outputsasfollowingFigure6.Whilsttraditionalperformancemeasurementsystemsareheavilyconfinedtofinancialmeasuresonly,thedescriptiveframeworkoftheBSCprovidesawiderangleforappreciatingtheproblems(empiricalsituation)affectingacompany’sperformance.Itachievesthisbyviewingacompany’sperformancefromfourperspectives:financial(F),customers/market(C),internalbusinessprocess(IBP)andinnovation&learning(L&I).Itgivesusabroaderviewoftheissuesofacompany’sperformanceandisnotmerelyconfinedtofinancialperformance.AccordingtoKaplan&Norton(1992),thetraditionalfinancialperformancemeasuresworkedwellfortheindustrialera,buttheyareoutofstepwiththeskillsandcompetenciescompaniesaretryingtomastertoday.TheyresearchedtwelvecompaniesandderivedtheBSC,whichisnotprescriptive,butratherprovidesadescriptiveframeworktomeasureacompany’sperformancefromthefourperspectives.Theseperspectivesarebasedonthenotionthatthetraditionalfinancialperformancemeasures(thesecondtierofFigure5)areinadequatefortoday’sbusinesses.Thedescriptiveframeworkdividestheperspectivesintothedriversorleadingindicators,namely,L&IandIBP,andtheoutcomesorlaggingindicators,namely,CandthusF.OneofthewaystoappreciatetheBSCframeworkisnotthecriticismofthelogicalrelationshipofthefourperspectivesassuch.TheoriginalideaortheconceptoftheBSC(companyperformancemeasurementsystemofthesecondtierofFigure5)ishelpingpractitionersnotmerelyfocusonfinancialperformance;customersatisfaction(customer)isthemostimportantoutputoftheprocesses(internalbusinessprocess)priortofinancialperformance,forwhichtheauthorsofBSCcallthemthe‘laggingindicators’.Asamatteroffactthatitiseasyforanyonetothinkofwhyonlyfournotfiveorsixperspectivessuchasthehumanresources.However,theargument(thecause-andeffectrelationships)oftheframeworkhasbeenheavilyattackedbyacademics.ThemajorproblemorconstraintoftheBSCframeworkisitsoriginalresearchaim,whichiscompanyperformancesystemitself(thesecondtierofFigure5).TheoriginalaimwasnotfindingaTQMmanagementorstrategicmanagementmodel.Althoughtheauthorsremediedtheissuebypublishingthepapersandbooks(KaplanandNorton,1993,1994,1996),theproblemremainsthesamesuchashowastrategyislogicallydevisedisquestionable.ThemajordeficiencyofBSCis“translatingacompany’smission/visiondirectlyintostrategy”withoutconsiderationsofexogenous(OpportunitiesandThreats)andendogenous(StrengthsandWeaknesses)variablesintheirearlierpublications.AccordingtoLam(2002b),themajordeficiencyhadalreadybeensolved(usingSWOTandBSCtogetherinS2).Neverthelessusedthesimpleconceptofsystemstheory/modelbuildingtechniquetoassessorrebuildtherelationshipofthefourperspectivesofthewholeideaorframeworkforthesakeofthisinvestigation.Therefore,wewouldliketotriangulatethefourperspectivesintothesystemstheoryasfollowingFigure7.TheauthorsoftheBSCsuggestedthattheusersoftheframeworkshouldnotusemorethanfivevitalmeasurespereachperspectiveorfocusonthemajorissues.Thatistosay,inourminds,thevitalvariablesofthesystemstheory.Iftherearetoomanyvariables,itishardforhumanbeingstocomprehend,aswecannotvisualisemorethanthreedimensions.(Thinkaboutlinearandnon-linearprogramming)ItisabsolutelyhelpfulforTQMpractitionersorchangeagentswhoareworkingonacompany’sperformanceissuestoidentifyandthenfocusonthemajorissues,asallcompaniesareundertheconstraintsoflimitedresources,whicharetheendogenousvariablesasweproposedinthesystemstheory.ItisuptotheusersofBSCtoprioritisetheidentifiedissues,suchasselectingwhichmeasuresofthekeydrivers(inputs)warrantactionfirst.TheKeyPerformanceIndicators(KPI)ofthedescriptiveframeworkoftheBSCalsoprovidesachannelforcommunicationandthebasisofcollaborationduringimplementationperiodandcontrolforthesakeofcontinuousimprovement.OneofthestrengthsoftheBSCisthefactthattherearemanycompanies(morethanfiftypercentofFortune500areusingthismanagementasitclaimedbytheauthors)However,oneoftheweaknessesoftheBSCisthatitonlyprovidesadescriptiveframeworktoinvestigateordiagnosesomeofthevariables,whichaffectacompany’sperformance.TheassumptionoftheBSCistheexistenceof‘strategy’,themajorinputsofthesecondtierofthestrategicmanagementprocessesasweproposed.Fromourpointofview,itistheanalysis/discussion(inputs)andthedebatebetweentopmanagementandstaffsabouttheformationofstrategyorstrategicchoice(theprocessesofthefirsttieroftheproposedconcept)sothatsoundandlogicalstrategies(outputs),whichbecometheinputsofthesecondtierbusinesssystemsofFigure5.Thatistosay,theprocessesofformulationofstrate