To manage industry clusters in the long term, businesses need to keep a close eye on the overall reason for using clusters – and monitor progress. MFG, a media and film company in Baden-Württemberg, supports companies in launching business clusters, especially in IT, creative and knowledge-based branches. It does this by promoting professional cluster management. MFG recently started using an online balanced scorecard developed by the Steinbeis Transfer Center for Site Management and Business Development.
As business becomes ever more global, German companies are increasingly having to compete against international competitors. Not only is there intense competition between regions for research and production facilities, they also fight for skilled workers. Salary growth, employment, and future living standards will all be dictated by a region’s ability to position itself against competitors. To succeed, a region must recognize its strengths and carefully address its weaknesses. This is where successful “cluster management” comes into play. As management processes become more and more complex, clusters of locations need to have access to reliable information so they can plan their next steps. Today, online tools have almost near-indispensable when it comes to providing up-to-the-minute information.
A balanced scorecard can provide cluster managers and other key stakeholders with an outline of key issues which need to be addressed and a clear overview of progress. To do this, the program has to be available online in real-time for an unlimited number of people in each cluster, without having to install complex software. The MFG solution uses the Steinbeis balanced scorecard, based on a web-based tool developed by the Steinbeis Transfer Center for Site Management and Business Development. Thomas Hundt, board member at bwcon:kreativ, is impressed with the new application: “The MFG solution allows me to enter into strategic dialog with the rest of the board and track network progress precisely.” Work is already underway to combine this balanced scorecard method with benchmarks of the most important cluster management success factors. It could even be integrated into quality management methods such as EFQM.
When using balanced scorecards, it is important not to just list objectives, key indicators and actions. The best approach is an overall strategic concept and measurable steps to achieve objectives. Users need to capture interrelated causes and effects and adapt to constant changes in competition as part of an ongoing learning process. The only way to achieve this is through openness and clear communication – the recipe of success for any successful industry cluster. The Steinbeis balanced scorecard plays an important role in shaping success, as will online benchmarking.