DuPont BSC Implementation

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DuPont BSC Implementation

• Devarsh Shah, Harsha Gunnam, Manish Wadhwa

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Agenda
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Background

• Founded in 1802
• Headquartered in Wilmington, Delaware
• Worlds second largest chemical company
• Operates in 70 countries
• Wide range of products and services

DuPonts vision is to be the world's most dynamic
science company, creating sustainable solutions
essential to a better, safer and healthier life
for people everywhere.
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The Need for Balanced Scorecard

• DuPont Engineering Polymers division had 4,500
  people working at 30 facilities around the world
• Eight global product businesses, three regions,
  and six shared service units
• Multinational and multiproduct organization was
  having trouble implementing a coherent strategy
• Revenue growth was stalled at only 2.5

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Implementation Steps

• Develop corporate-level strategy map articulating
  the theory of corporate advantage
• Assign senior executives to be responsible for
  each strategic theme part-time job
• Identify strategic initiatives that support each
  theme and authorize resources
• Periodically review the performance of the
  initiatives and test each ones underlying theory

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BSC Process at DuPont

• A divisional balanced scorecard strategy map was
  built
• Described how units could align their actions to
  deliver financial objectives of revenue growth
  and cost reduction
• Identified five distinct themes
• Appointed senior manager to each theme
• Cascaded the high-level themes throughout the
  organization

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Metric Development

• Every objective is aligned to a strategic theme
• For each objective, specific measures and targets
  are identified
• Initiatives define the resources and actions
  required to implement the strategic objective

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Problems Faced

• Resistance to change from local units and
  employees
• Difficult to get them to pay attention
• Too many other programs already underway
• EP encouraged local managers to halt projects
  not contributing to the five themes
• Cutting down on clutter freed up space for new
  initiatives that support divisional strategic
  themes

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Outcome

• Highlighted corporate priorities effectively
• Easy to understand resource allocation
• More productive discussion and dialogue
• Used scorecard architecture to and measures to
  gain support for agendas and projects
• Developed better strategic partnerships with
  customers

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Questions ??