1. Across the Pacific Ocean- Building an Enterprise-wide Strategic Platform -November 5, 2008 Union Bank of CaliforniaThe Bank of Tokyo-Mitsubishi UFJTakehiko Nagumo

2. Agenda Company ProfileBrief History of BSC at BTMU / UBOCEvolution of Strategic Platform:1) Enterprise-wide Risk Management COSO2) Customer-Centric Strategy Execution Six Sigma3) Management Philosophy CSRConclusion BSC as Learning Dynamics2 3. MUFG Profile Mitsubishi UFJ Financial Group Bank of Tokyo-Mitsubishi UFJ Mitsubishi UFJ Trust BankMitsubishi UFJ SecuritiesMitsubishi UFJ Mitsubishi UFJ NICOS Lease & Finance MUFG is a fully-fledged comprehensive financial group owning thecommercial bank, the trust bank, the securities company, top-class credit card, consumer finance, asset management, leasing, and other companies,as well as a U.S. bank (UBOC). To Be a Premier, Comprehensive, Global Financial Group3 4. BTMU & UBOC Profile Mitsubishi UFJ Financial Group100%inc. shares held by MUTB) 100%100%Bank of Tokyo-Mitsubishi UFJMitsubishi UFJ Trust BankMitsubishi UFJ SecuritiesTotal Assets: No. 1 in JapanTrust Assets: No. 1 in Japan Customer Assets: No. 4 in JapanUnionBanCal Corporation Union Bank of California(as of March 31, 2008)4 5. MUFG Global NetworkDomestic Branch NetworkOverseas Branch Network EastJapan EMEARetail: 453 Corporate:18035West Japan 633 336 Retail: 252 Americas Corporate: 11755 Union Bank30244of California Asia and Oceania(UBOC) 369Central Japan Retail:165Corporate:79Domestic Total: 1,246 Overseas Total: 456 (as of March 31, 2008)5 6. Brief History of BSC at BTMU / UBOC BTMU Americas (NY) BTMU Global (Tokyo)UBOC (SF) 2001 July - 2004 July-2008 July - Organization:Organization:Organization: Mgmt Foundation: JapanMgmt Foundation: JapanMgmt Foundation: US Best Practice: US Best Practice: JapanBest Practice: US Headcount: Approx. 2,000Headcount: Approx. 54,000 Headcount: Approx. 10,000Motivation:Motivation:Motivation: Linkage b/w org and individuals Alignment of mgmt processes Regional Governance Balance (risk/return, HQ/Br, etc) Cross-org. Collaboration (Strategy & Risk Mgmt) Clear Roles & ResponsibilitiesExecution CapabilityKey Results:Key Results: Key Results:Integration / alignment b/w strategy and risk management Successful merger integrationHigh marks in US regulatory Net profit increase by 117.5% examinationCredit rating improvementEnhanced communicationNo. 1 rating in Brand Survey b/w expats and local etc. employees 6 7. Across the Pacific Ocean HQA (NY) to BTMU Americas 2001 - Union Bank ofCalifornia 2008 - BTMU Tokyo to the GlobalOperations 2004 - 7 8. Cross Cultural Context - Culture Matters Japanese CompaniesAmerican Companies Vague Mission and VisionDefined Incremental Strategy Formulation ProcessGrand DesignOperational EfficiencyCompetitive Edge Differentiation / Uniqueness Bottom Up Decision MakingTop Down(or Middle-Up-Down) Implicit / Nonverbal / ClosedCommunication StyleExplicit / Verbal / Open Process Orientation Performance Evaluation Outcome Orientation Diversified Culture / Single Culture / Cooperative Work culture CompetitiveAdapted from Essence of Failure, by I. Nonaka 8 9. Strategy Execution Platform at GlanceCustomer Value Proposition Corporate Social Responsibilities External CS ManagementBrand Image Voice ofScore Sat. ScoreScoreStakeholdersInitiative Business Line Evaluation Sat. ScoreCompliance & Risk ManagementISO9001/14001 Branch Office RegulatoryInternal &Audit & Exam. Sat. ScoreExam. Results External Audit CSASOX 404 Employee EngagementScoreTest Results EmployeeOpinion Poll ComplianceInfo. SecuritySat. ScoreResultsCheck List Test ResultsStrategy FormulationStrategy ExecutionStrategy ReviewPDCASWOT Analysis, 5 Forces Analysis, etc.9 10. COSO Six Sigma CSR Integrating Risk Management with BSC Publics Trust & Confidence Corporate Value CreditStrategy Risk RiskGovernance FrameworkLegal & Regulatory OperationalRiskMarket RiskRisk People Risk IT RiskCrisisMoneyManagementLaundering Country RiskRisk SettlementRiskInformation /Data SecurityLiquidity RiskRisk Systemic Risk Reputational Compliance RiskRisk10 11. COSO Six Sigma CSR COSO ERM-Inspired BSC EvolutionCOSO ERM Framework Committee of Sponsoring Organizations of theTreadway Commission (COSO) is a U.S. private-sector initiative for enhancing risk managementand internal control, sponsored and funded by:American Institute of CPAs Association of American Accountants Financial Executives International The Institute of Internal Auditors The Institute of Management AccountantsCOSO ERM framework is the global de factostandard or common language of enterprise-widerisk management, adopted in various regulatoryframeworks and activities such as:BASEL II SOX Regulatory examinations 11 12. COSO Six Sigma CSR COSO ERM-Inspired BSC Evolution Strategy-Risk Management Double Loop Once strategy is articulated for alllevels of the organization from thetop-down, it became easier to Proactive RiskProactive Riskidentify and assess risks associatedManagement and Management andCompliance Compliancewith implementing strategy.Corporate level COSO-based control self-assessment (CSA) was introducedCascadingAggregatingon to proactively manage risks Strategy BU levelRiskderived from the strategy execution (Top-down)(Bottom-up)process. This process was adoptedas a bank-wide common objectivecalled Proactive Risk ManagementDivision 1and Compliance in BSC. CSA was conducted at the lowest Division 2organization level and CSA resultswere aggregated from the bottom.Division 3 The BSC-CSA linkage created aStrategy-Risk management doubleloop for BTMU.12 13. COSO Six Sigma CSRCOSO ERM-Inspired BSC Evolution (1) BSC: Objective Setting(2) Process Map : Business Process Analysis ProcessProcessProcessProcess Process (Step 1) (Step 2) (Step 3) (Step 4)(Step 5) Risk RiskRiskRiskRisk (3) Risk Scenario : Hypothesis of cause-event-effect chain (4) Risk Assessment & Control Cause ARisk Event A Cause B Effect (Loss) ARisk Event B Cause CEffect (Loss) BRisk Event C Cause D13 14. COSO Six Sigma CSRCOSO ERM-Inspired BSC Evolution Performance DriverPerformance Outcome(Leading Indicator) (Lagging Indicator)Proactive Risk Proactive RiskManagement andManagement and Brand ImageCorporate level ComplianceCompliance RAROC* Corporate levelScoreCascading Cascading AggregatingAggregatingStrategy Strategy RiskRisk(Top-down) (Top-down) BU levelBU level (Bottom-up)(Bottom-up) # of Operational # of ComplianceIncidentsViolationsDivision 11 Division # of Information # of Fin / Non-finDivision 22 Division LeakagesReporting ErrorsDivision 33 Division Audit / Exam # of Misconducts Results % of issues proactively identifiedResult vis--vis past 3-term Ave: by business line before anyone else Improved = +2 points (auditors / regulators) Unchanged = 0 point Degraded = -1 -5 points % of issues closed by the deadlineMajor Incident Damaging Corporate Reputation: -5 points (trigger item)*RAROC = Risk-Adjusted Return on Capital 14 15. COSOSix Sigma CSR COSO ERM-Inspired BSC Evolution BoardInternal Audit Management Total Risk Aggregation(Vertical)Corporate RiskManagement LinesReputational RiskBusiness Risk Risk Aggregation Market Risk by Risk Category Credit Risk(Horizontal) =Operational RiskCorporate Risk KPIs Operation Risk IT Risk Compliance Info. Security Acc. & Tax RiskOperation & IT People Risk, etc. 15 16. COSO Six Sigma CSRStrategy Execution Platform at GlanceCustomer Value Proposition Corporate Social Responsibilities External CS ManagementBrand ImageVoice ofScore Sat. ScoreScore StakeholdersInitiative Business Line Evaluation Sat. ScoreCompliance & Risk ManagementISO9001/14001 Branch Office RegulatoryInternal &Audit & Exam. Sat. ScoreExam. Results External Audit CSASOX 404 Employee EngagementScoreTest Results EmployeeOpinion Poll Compliance Info. SecuritySat. ScoreResultsCheck ListTest ResultsStrategy FormulationStrategy ExecutionStrategy ReviewPDCASWOT Analysis, 5 Forces Analysis, etc. 16 17. COSO Six Sigma CSR Performance = Mindset x Execution SkillHigh PerformanceFinancial targets continuously rising high Execution / Problem Solving Skill Increasingly complex customer needs andbusiness requirementsStrategic MindsetBuilding Customer-Centric Strategic MindsetLack of Execution /Problem Solving SkillLow Performance 17 18. COSOSix Sigma CSR BSC-Six Sigma Integration Benchmarking Management Philosophy JQA (Leadership & Management Maturity) Strategy Execution Management BSC (Objective Setting & Performance Evaluation) Initiative Execution Management Six Sigma (Strategy Execution & Problem Solving)18 JQA = Japan Quality Award 19. COSO Six Sigma CSR BSC-Six Sigma Integration BenchmarkingJQABSC Six Sigma Useful for managementUseful for strategic Useful customer-centricquality assessmentobjective setting /strategic execution andprioritization & cascading problem solvingStandardized technique.management qualityUseful for performanceassessment methodologymeasurement, evaluationPromote managementand linkage to rewardby fact (data-driven)programs Not useful for Not a managementNot suitable forprioritizing objectives / quality assessment toolprioritization of strategicinitiativesobjectives / initiativesNot a strategyNot useful forexecution or problem Not a performanceperformance solving technique itself evaluation andmeasurement andcompensation toolevaluation 19 20. COSO Six Sigma CSR BSC-Six Sigma Integration ConceptMarket Segmentation / Customer-Base SelectionBusiness StrategyCustomer Value Proposition Selection Survey (Benchmarking Customer Focus & Prioritization) AnalyzeVoices of customers VoicescustomersCustomer ( VOC)KPI SettingTranslate toBehavioral Change concrete actionTarget Setting &Action PlanningPerformance EvaluationLeading to & Compensation financial results Business PerformanceRevenue growth 20 21. COSO Six Sigma CSRDeepen Customer UnderstandingCustomer Satisfaction LevelCustomer Satisfaction Factor Customer Delight Factor Important service quality to Key differentiator often associated provide but competitors can also with innovative ideas. Essential to provide similar type / level of foster customer loyalty and service. advocacy Consequently, competition on Must exceed customerthis basis will soon face a zero- expectationssum game situation, particularly in a saturated market. Generally used for growth strategies.Service LevelCustomer Dissatisfaction Factor Used to be a differentiator butturned out to be a minimumrequirement today. Customers will feel beingsatisfied but will easily leaveif this basic requirement is notproperly met.21 22. COSOSix Sigma CSR Translate VoCs to Metrics and Actions KPIs BenchmarkingStrategic Priority# of security-related customer complaintsSingificance to Customers (1, 3, 5, 7, 9) Customer Significance x Upgrade RatioTime spent to write an application# of teller counter per customer Average transaction cycle time Normalized Weight# of branch officesUpgrade Ratio Target QualityCompetitor C Competitor DCompetitor A Competitor BCompetitor E BTMUY = f(x) Customer Requirements (VOC) "I want convenient location." 9 93 971515 167% 15.0 31%"I do not want to wait in line."5 9 19 7 539117 100% 5.010% "I want a simplier application form." 3 97 911539 129% 3.98% "I want quick transaction processing."7 3 3 39 5 971319 180% 12.6 26% "I want high security." 7 93 975115 167% 11.7 24% KPI Prioritization 102 6653 10863Normalized weight of significance to customers 100% 26%17%14% 28%16% LegendSurvey-Based Score Conversion 9 = "Strongly related"1st place = 9 3 = "Related" 2nd place = 7 1 = "Weakly related"3rd place = 5 0 = "Not related" 4th place = 3 5th place or below = 1 22 23. COSO Six SigmaCSREnhance Execution Capabilities (1) Define Problems / Issues (2) Define Customer Requirements(3) Measure Current Performance BTMU VOC CR R u n C h a rt o f C 1B o x plo t o f vs Biggest Y SMBC Travelex Positive VOC:Negative VOC: 20 0 .0 6 A Citibank 15 0 .0 5 Positive VOC:Negative VOC: TravelexC1 10 0 .0 4 Bigger Y1 Bigger Y2 Bigger Y3 B 0 .0 3 5 Positive VOC:Negative VOC:0 .0 2 0 JTB 1 2 3 4 5 67 8 910 1112131415 HIS S a m pl e 0 .0 1C Moneyport Number of runs a bout media n: 9 Number of runs up or down: 10WCS E x pected number of runs :7.66667 E xpected number of runs: 9.66667 HSBC0 .0 0 Long es t run a bout media n:4 Longes t run up or down:3 IT Y1Y2Y3Y4 Y5Y6Approx P-Value for C lus tering :Approx P-Value for Mix tures: 0.79151 0.20849 Approx P-Va lue for Trends : Approx P-Va lue for Os cilla tion: 0.58617 0.4138312 Define customersDefine customerRun Chart Box Plot Strategy Map & ScorecardBreakdown objective requirements to a bite size S c atte rplo t o f Y 1 v s Y 2 H is to g r a m o f C 1 Customer DelightSatisfaction + No rm al ++Problem Statement ++- 3 ++ Mea n6.25 730+ + S t Dev 3.679N16 2 604/01/2002 30 Metrics 1 () 5 Fre qu e n c yObjectiveBenefitDefect4 Y1 0 BSCKPI JTBCiti9.0 3.0 7.07.09.09.0 7.0 7.0 7.0 7.09.07.0 7.0 9.0 9.0 9.0 7.0 9.0 9.0 7.09.09.01.21.2 1.0 1.010.8 29.7 3.6 9.93 5.0 7.0 9.07.0 7.07.09.0 9.0 7.0 7.09.0 1.21.0 6.0 16.5 -11.0 1.0 7.01.0 1.01.05.0 3.0 1.0 1.09.0 1.81.0 1.8 4.9 2008 3.0 5.0 5.05.0 5.05.09.0 9.0 7.0 5.09.0 1.41.0 4.2 11.5 2008 5.01.0 9.07.07.07.0 7.0 5.0 7.0 5.09.07.0 7.0 7.0 5.0 5.0 9.0 5.0 7.0 5.09.07.01.01.0 1.0 1.0 5.0 13.7 1.0 2.72 1.0 3.0 3.03.0 3.05.03.0 1.0 5.0 1.03.0 1.01.0 1.0 2.7 2008 1.0 3.0 3.05.0 3.07.03.0 1.0 5.0 1.03.0 1.01.0 1.0 2.7-21.0 5.0 7.05.0 5.09.07.0 5.0 5.0 5.05.0 1.01.0 1.0 2.7 2008 1.0 5.0 5.05.0 5.07.05.0 3.0 5.0 5.05.0 1.01.0 1.0 2.71 2008 2008 2008 -30 25.216.4 10.914.0 9.15.55.5 3.6 2.7 2.7 4.3( -4-3-2 -1 0 1 2 3 04 8 1216Y2 C1Form project teamDevelop project charter Hypothesize customer Define customer focus Scatter PlotHistogram satisfaction factors(4) Analyze Root Causes (5) Improve / Execute(6) Control / Sustain Performance 12 345 67 8 910 x / Ru n C h art o f Y 3 NVA 1 357 VA2y -11 12300NVANVA NVANVA 13 y10 1 12 y5,y6 2 2424 6501 1 1 110 y11 HF11-12900No3 2 NVA y1,y4 y8 BigY 5 5 650 55 5 4 291 HF 2Yes2y7 1 1 -1-11600 No y2,y3,y5,y6 2 4 4001 1 2 2 120 3 Y3NVA y1,y42 2450y9 1 y1,y4y1 SMBC551 5 1 3 20 -1 -1-1 890Yes HF y2 -1 NVA HSBC5 4 1 5 1 3 19y3 -11-1 940 HF-2NVANo 3 2 y4 Citibank 12 301 1 1 17 y2,y3,y6 1 -1 11700Yes HFy2,y3 y5 Travelex 33 25 1 1 1 5 2014 -3y6 JCB No Day2 11020 3040 50 607080 90100 Greenport 3 21 1 1 19 O bs e r vat i o n-1 -1 1 890NVA y7 VAYes No y8 VA 60 NVA Yes y9 54 301 5 1 117Number of runs about median: 49 Number of runs up or down:72 Expected number of runs: 51.00000 Expected number of runs:66.3333311 13700HFy10 VA 240 Longest run about median:10 Longest run up or down:3 2 4 y11 3164 1 1 1 111 24,000 Approx P-Value for C lustering: 0.34383 Approx P-Value for Trends: 0.91250Approx P-Value for Mixtures:0.65617 Approx P-Value for Oscillation:0.08750Drill down to root causes using qualitative tools Develop improvement plan Estimate results Objectively assess the results KPI Q1Q2Q3 Q4 USL LSL KPIM u lti- V a ri C h a rt f o r by - M ain Ef f e c ts P lo t ( d ata m e a n s ) f o r ROIROE ROIROE Ru n C h art o f C13. 3. ROIROE Biggest Y 121 2 9.90% 10NRI x 174200.06Biggest Y 12 3 4 32.5 0 .0 61 1,355 2 3.4 Big Y 150.043.1 3.1 3.2 3.2 3.3 3.3 3.4 3.5 3.5 2.40% 0 .0 5 M ean o f 20 C1 3.4.1 3.4.1 3.5.1 3.5.1 100.02 3.1.1 3.1.1 3.2.1 3.2.1 3.3.1 3.3.1 0 .0 4 Big Y23 24 25 3.4.2 3.4.2 3.5.2 3.5.2 0 .0 3 12121 234 5 3.4.3 3.4.3 0.06 0 .0 2 3.5.3 3.5.3 21263.4.4 3.4.4 0 3.l.2 3.l.2 3.2.2 3.3.2 3.3.2 y 0 .0 1 3.2.2 123 45 6 7 8 910 11 1213 14 150.04 223.4.5 3.4.5 y 3.3.3 3.3.3 S a m ple 0 .0 0 3.4.6 Number of runs about median: 9Number of runs up or down:10 3.1.3 3.4.6 0.02 3.1.3 27 Expected number of runs: 7.66667E xpected number of runs:9.666671 212Longest run about median:4Longest run up or down:3 PJ GSC PJ Approx P-Value for Clustering: 0.79151Approx P-Value for Trends: 0.58617 87 88 9 1 93 9 7 98 9 9 1 0 1 1 03 10 6 1 09 1 1 1 4 3 44 45 4 6 4 8 49 50 52 53 5 4 5 5 Pan el variable : 3.1.4 3.1.4 Approx P-Value for Mixtures: 0.20849Approx P-Value for Oscillation:0.41383 FMEA KPIProof of conceptProjectFurther drill down to vital few root causesExecutionPeriodically report statusSustain performancemanagementusing quantitatively tools23 24. COSO Six Sigma CSR Customer-Centric Value Creation ModelTop Down Sustainable GrowthManagement-Led Change LeadershipCS CD(Customer Satisfaction) (Customer Delight)Autonomous ChangeISO9001 Evolution Six SigmaESEE(Employee Satisfaction) Empowerment (Employee Engagement) BSC as Strategy Execution PlatformBottom Up 24 25. COSO Six Sigma CSRStrategy Execution Platform at Glance Customer Value Proposition Corporate Social Responsibilities External CS ManagementBrand ImageVoice ofScore Sat. ScoreScore StakeholdersInitiative Business Line Evaluation Sat. ScoreCompliance & Risk ManagementISO9001/14001 Branch Office RegulatoryInternal &Audit & Exam. Sat. ScoreExam. Results External Audit CSASOX 404 Employee EngagementScoreTest Results EmployeeOpinion Poll Compliance Info. SecuritySat. ScoreResultsCheck ListTest ResultsStrategy FormulationStrategy ExecutionStrategy ReviewPDCASWOT Analysis, 5 Forces Analysis, etc. 25 26. COSOSix Sigma CSR CSR Concept Multi-Stakeholder View SocietyShareholdersEconomyLocal Community & Customers Global SocietyBTMUEmployeesBusinessPartnersEnvironment &Future GenerationsEnvironment - Together with our stakeholders,we aim for a harmonious and prosperous world,and we will do our utmost to help create a sustainable society. 26 27. COSO Six Sigma CSRCSRBSC Integration Approach To Be a Premier, Comprehensive, Global Financial Group (Global Top 5) To Be a Premier, Comprehensive, Global Financial Group (Global Top 5)Quality for You - No.1 Service, No.1 Reliability, No.1 Global Coverage BSC-based PDCA CycleManagement StrategicPerformancePhilosophyManagement Evaluation Balanced Objective Setting Common PlatformOrg. and Employee LinkageCSR-Based Management PhilosophyCo-Prosperity and Co-Existence with All Stakeholders27 28. COSO Six Sigma CSR CSRBSC Integration Approach Balanced Scorecard CSR Objectives CSR Domains PlanDoCheckActStakeholdersCSR Initiatives Value Creation Customers Customer Value PropositionCustomer Satisfaction Survey Continuous ImprovementShareholdersPerformance Monitoring Diversity EmployeesStrategic PlanningEmployee Engagement Survey Community Social Local Community Support ContributionCollaboration with NPO/NGO Environment EnvironmentGovernment ISO14001 Information NPO / NGO Security Privacy Protection / ISO27001Value Protection DevelopingCountries Disclosure SOX 404 / J-SOX Rating Agencies Internal Control COSO Control Self-Assessment Mass MediaCompliance Compliance ProgramEtc.Corporate Culture 28 29. COSO Six Sigma CSR Disclosure in the CSR Report 29 30. COSO Six Sigma CSR Disclosure in the CSR Report 30 31. Strategy Execution Platform at Glance Customer Value Proposition Corporate Social Responsibilities External CS ManagementBrand Image Voice ofScore Sat. ScoreScoreStakeholdersInitiative Business Line Evaluation Sat. ScoreCompliance & Risk ManagementISO9001/14001 Branch Office RegulatoryInternal &Audit & Exam. Sat. ScoreExam. Results External Audit CSASOX 404 Employee EngagementScoreTest Results EmployeeOpinion Poll ComplianceInfo. SecuritySat. ScoreResultsCheck List Test ResultsStrategy FormulationStrategy ExecutionStrategy ReviewPDCASWOT Analysis, 5 Forces Analysis, etc.31 32. BSC as Learning Dynamics Learning & Adapting Opportunity (2) Learning & Adapting Opportunity (1) Identify opportunities for Testing HypothesisDeveloping Hypothesis Brainstorm with team members improving performance from to develop a strategy map and financial and non-financialscorecard. performance data. Invite business partners and Apply various data analysis subject matter experts to deepen techniques and conduct the discussion. (4) Analysis & Adapt (1) Strategy Mapping benchmarking as necessary to deepen strategic sight. The strategy map and scorecardare a hypothesis of strategy that Revise strategy based on will be tested with performance the new learning data once they are collected.Histo gram o f Y1Sc atte rplo t o f Y1 vs Y2 Normal3 25Mean -0.03399 StDev1.062 N100 2 20 1 Fr e qu e n c y 15 Y1010 -15-20-3-2 -101 2 3 -4-3-2-1 0 1 23 Y1Y2 (3) Performance Results (2) Scorecard DevelopmentRu n Ch art of C1Pare to Chart of 203001001525080 C1 10 200Pe r c en t 60Co un t5 150 4010001 23 456 7891011 12 13 14 15 20Sam pl e 50 Number of runs about median: 9Number of runs up or down:10Expected number of runs: 7.66667Expected number of runs: 9.6666700Longest run about median:4Longest run up or down:3 3941210 712 11 65 OtherApprox P-Value for Clustering: 0.79151Approx P-Value for Trends: 0.58617 Count 67 58 34 22 212118 181612 119Approx P-Value for Mixtures: 0.20849Approx P-Value for Oscillation:0.41383Percent 21.8 18.9 11.1 7.2 6.8 6.8 5.9 5.9 5.2 3.9 3.6 2.9 Cum %21.8 40.7 51.8 59.0 65.8 72.6 78.5 84.4 89.6 93.5 97.1 100.0 32 33. BSC-Based Double Loop Learning Strategy Formulation Strategy ExecutionStrategy Review P D CASWOT Analysis, 5 Forces Analysis, etc.COSO-Inspired ERM Integration Six Sigma-Based Execution Capabilities CSR / BSC Integration33 34. Double Loop Learning Evolves Platform Strategy Execution Management Level Management Infrastructure Level Organizational Capability Level Management Philosophy Level 34 35. Double Loop Learning Evolves PlatformManagementPhilosophyCSRStrategic Management BSC C Enterprise-wide O Risk Management SInitiative OExecution Six Sigma 35 36. Conclusion The BSC is more than just a strategy execution management tool. Over the time, it promotes dynamic organizational learning on the management platform as a whole and accelerates its evolution.If used appropriately without losing momentum, the BSC could gradually deepen the management understanding on the quality of management platform and trigger its evolution.The BSC can flexibly integrate various management methodologies and philosophies such as risk management, six sigma, and CSR concept. Therefore, an organization should use it creatively. In fact, creative customization of the BSC based on the double loop organizational learning is the best way to make it more suitable for the organization.Cross-cultural experience that arises from the global use of the BSC provides excellent opportunities for advancing and innovating the management platform. Therefore, global organization should consider it as a competitive advantage rather than as an extra obstacle or burden for implementing the BSC. 36 37. Thank you 37