From Strategy to Execution: Implementing a Balanced Scorecard and KPI Management Framework to Enhance Organizational Performance in a Mid-Sized Service Company

Abstract

This thesis examines how a Balanced Scorecard (BSC) and KPI-based performance management framework can support strategic execution and profitability in a midsized service company operating in the automotive sector. The study addresses the recurring challenge faced by such organisations: translating strategic objectives into consistent operational practice under conditions of rapid growth, cost pressure, and increasing customer expectations.The research adopts a qualitative single-case study design. Empirical data were collected through semi-structured interviews with managers and coordinators, crossfunctional workshops, customer and employee surveys, internal company documents, and financial records. The data were analysed using a thematic coding approach aligned with the four Balanced Scorecard perspectives. The findings reveal strong operational flexibility and customer responsiveness, but also highlight structural weaknesses in reporting quality, capacity planning, digital maturity, and portfolio concentration. Based on these empirically grounded insights, a tailored Balanced Scorecard and KPI framework was developed, including clearly defined strategic objectives, eading and lagging indicators, governance routines, and a phased implementation roadmap integrated with an ERP system. The study demonstrates that the Balanced Scorecard can be effectively adapted to the context of mid-sized service organisations when kept focused, data-driven, and embedded in leadership routines. While observed effects to date are limited to increased transparency and managerial focus, the anticipated performance improvements are expected to aterialise through systematic KPI monitoring over a 6–12 month implementation period. The thesis contributes a practical, replicable framework for strengthening strategic alignment, performance management, and longterm competitiveness in mid-sized service companies.