EP33: Using Balanced Scorecard to Force Joint Venture Synergy

Sanjiv Anand, Chairman, Cedar Management Consulting InternationalAs collaboration becomes essential in today’s business environment, joint ventures and strategic alliances often struggle to translate conceptual synergies into day-to-day execution. Common challenges include aligning shared goals, measuring joint performance and overcoming legacy mindsets. The Balanced Scorecard has proven effective in addressing these issues by creating a common agenda and performance framework for all partners.This is illustrated by Oiltech, a joint venture of three oilfield services companies formed to improve productivity and customer value through cross–value chain integration. While the strategic rationale was clear, execution was difficult due to differing priorities and operating models. Oiltech used a joint venture Balanced Scorecard to define shared objectives across financial, customer, internal and operational perspectives. A key goal was reducing customer life-cycle costs, measured through cost per barrel at the wellhead and supported by performance drivers that encouraged cross-business collaboration. By linking outcomes to behavioural drivers and process reengineering initiatives, Oiltech embedded teamwork, improved efficiency and successfully transformed strategy into sustainable operational results.