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Developing Low Carbon City Sustainability:
Systematic Planning & Implementation Within the Eco2 Value Network
by Irv Beiman and Daniel Zhu
Executive Summary
There is a strategic value chain within Ecological Economics: the Eco2 Value Network. This paper describes
a way to map and use the Eco2 Value Network to achieve objectives of global and national interest. Three
government cases are used to illustrate a practical methodology for cities embarking on their journey toward
low carbon sustainability. Information is presented that is strategically important for how China can balance
its need for economic development with its need for sustainability. Developing Low Carbon City
Sustainability is emerging as a central component in the country’s evolving strategy for coping with the
complex challenges it faces. How can cities move strategically toward a low carbon economy while still
providing jobs, energy, water, food and affordable housing for a rapidly increasing urban population?
The complex challenge of how to achieve multiple competing objectives is being effectively addressed by
many of China’s most respected enterprises. More than a hundred complex commercial organizations in
China have begun successfully using a strategy management system to achieve their strategic objectives.
These complex conglomerates are not so different from complex cities when viewed from a systems
perspective. They both contain multiple interacting systems driven by people, policies, incentives and
available resources that are almost never in strategic alignment.
The economic growth associated with raising more than 350 million people out of poverty has increased
China’s specific security risks for drought and extreme weather events, including the risk of dramatic
disruption of complex supply chains. Floods, mudslides and fires, as well as severe water and air pollution
have disrupted the lives of millions of people and brought climate change squarely onto the government’s
radar screen. The country will benefit from the application of strategy execution methodology to these
complex problems.
This paper presents a detailed case description and analysis of the pioneering application of strategy
execution methodology to city government. In the early 1990’s, Charlotte, North Carolina became the first
American city to begin using strategy execution methodology and tools in its planning process. What was
called “the Balanced Scorecard” in the early 1990’s has evolved by 2010 into a sophisticated strategy
management system that includes a corporate scorecard and a strategic operating plan in combination with
an operational budget and a capital expense budget. The case illustrates the development of strategic themes,
strategic objectives and thematic scorecards, as well as placing city government within a business context.
The city’s vision, mission and strategic focus are described. Important illustrative detail is presented for a
strategically relevant focus area, including descriptions of initiatives, measures, targets and historical
performance.
Two China government cases are also briefly described, with their associated strategy maps: [1] the State
Assets Supervision and Administration Commission [SASAC], and [2] the Qingdao Municipal Committee
of the CPC. Finally, a generic strategy map template is presented for low carbon city sustainability. These
cases and generic strategy map template offer a strategic approach for how to achieve low carbon city
sustainability in China.
Key Words: ecological economics, Eco2 Value Chain, low carbon, sustainability, smart growth, smart city,
balanced scorecard, strategy map, economic development, resource efficiency, strategy execution, resilience,
strategic planning, strategy implementation, strategic objectives, strategic initiatives, strategic measures,
strategic targets, strategic performance, jobs, infrastructure, energy, food, water, shelter
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Developing Low Carbon City Sustainability:
Systematic Planning & Implementation Within the Eco2 Value Network
China faces a huge challenge: how to balance the country’s need for economic development with its need for
sustainability and for development of resilience to climate change. Developing Low Carbon City
Sustainability is emerging as a central component in the country’s evolving strategy for coping with this
challenge. Multiple critical objectives can be addressed by expanding the urban master planning process of
cities to include management of a broad set of critical objectives. These critical objectives might reasonably
include national security needs for:
 economic development and jobs,
 development of energy efficient and resilient infrastructure, and
 ensuring sustainable supplies of energy, water and food.
The country faces a critical strategic question for its urban environments: How can cities move strategically
toward a low carbon economy while still providing jobs, energy, water, food and affordable housing for a
rapidly increasing urban population?
Fortunately, the strategic challenge of how to achieve multiple competing objectives is being systematically
and successfully addressed by many of China’s most respected enterprises. These complex organizations
with multiple business units include Bao Steel & Bao Gang, Tsingtao Beer, China Aviation, China
Resources Microelectronics, Vanke, ENN [Xinao], Trina Solar and many others. More than a hundred
complex commercial organizations in China have begun successfully using a strategy management system
to achieve their strategic objectives. This enables each organization to:
 clarify their strategic objectives at multiple levels, ,
 develop and implement project plans to achieve those objectives,
 measure progress as it unfolds,
 analyze and learn from the results, and
 adjust their plans to achieve improved performance.
Consider that complex conglomerates are not so different from complex cities when viewed from a systems
perspective. Complex organizational conglomerates and complex cities both contain multiple interacting
systems driven by people, policies, incentives and available resources. These system elements are almost
never in strategic alignment.
In the most common scenario, optimizing achievement of one set of objectives will dramatically reduce the
system’s capacity to achieve other objectives. For example, commercial organizations typically have two
primary objectives at the top of their list. They want to achieve growth in both revenue and profitability.
Revenue growth usually requires investment. Investment tends to reduce profitability in the short term.
Cities face a similar challenge now as they attempt to maintain GDP growth while simultaneously moving
toward a low carbon economy and reducing the energy intensity and greenhouse gases [GHGs] associated
with that economic growth.
China’s management of cities has dramatically improved over the last several decades with respect to
delivery of basic services and infrastructure [power generation, transportation, real estate and digital
communications technology]. The economic growth associated with raising more than 350 million people
out of poverty, however, has increased China’s specific security risks for drought and extreme weather
events, including the risk of dramatic disruption of complex supply chains. Floods, mudslides and fires, as
well as severe water and air pollution have disrupted the lives of millions of people and brought climate
change squarely onto the government’s radar screen.
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The recent decision by NDRC to conduct pilot studies at the city and provincial level is a major evolutionary
socio-economic development in China’s continuing drive toward modernization. China’s historic socioeconomic evolution can be constructively accelerated and more finely tuned. This can be accomplished by
taking what has been established in many of the best managed commercial organizations and applying that
knowledge and practical methodology at the city level. Targeted cities can strategically expand the master
planning process to include a broader set of critical objectives. The commercial strategy management
methodology that has been established in China can be adapted for cities so they have a more rational and
systematic system for achieving their critical objectives.
Broad macro objectives have been strategically identified by NDRC. These can be more specifically
customized in the master plans for multiple cities and provinces, in light of their particular circumstances,
needs and resources. This is no different, conceptually, from what each complex organization faces when it
attempts to clarify its strategy for success by identifying its targeted strategic outcomes and the critical
objectives and projects that will enable achievement of those outcomes.
This is not theory. This involves engineering the strategy for success through deployment of a practical
methodology that enables management of complex dynamic systems.
 Success is defined through clarification of the desired strategic outcomes and enabling objectives.
 The path forward is clarified by the strategic initiatives and projects selected for enabling objectives
at the city level.
 Objectives are measured quantitatively where possible, and augmented by qualitative reports from
multiple points of view.
 City level objectives are cascaded vertically down to various city level agencies and bureaus to
achieve vertical alignment, with additional adjustment across organizational units to achieve
horizontal alignment.
 Subsequent analysis of results at multiple levels enables a more comprehensive and holistic
understanding of the critical system interactions that must be managed, including adjustment of the
critical elements [variables] for strategic success, such as funding, policies and incentives.
This systematic and practical process is being used by hundreds of commercial organizations in China. The
knowledge gained from practical experience with these commercial organizations can be applied for
achieving low carbon economic development at the city level. An illustrative case is presented below
City Government Case: Charlotte, North Carolina, USA
Background
Charlotte, North Carolina is the 25th largest city in the USA with a population greater than 600,000.
Charlotte is the country’s second largest banking and financial center. Several Fortune 500
companies are headquartered in the city. In the early 1990’s, the city government was administered
by a city manager who reported to the city mayor and council, all of whom were elected officials.
In the early 1990’s, Charlotte became the first American city to begin using strategy execution
methodology and tools in its planning process. The city developed its first strategy map and balanced
scorecard, which it now calls the Corporate Scorecard. This city is a useful case to consider because
city officials have continued to adjust their use of strategy execution methodology over a 15 year
period.
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The Charlotte Budget & Evaluation Office is responsible for administering the city’s strategic
planning process, which includes developing the city’s Corporate Scorecard. Charlotte’s
performance management and strategic planning approach involves clarifying organizational strategy
based on strategic themes, which the city Council calls focus areas. These focus areas are clarified
further by developing corporate objectives with their associated measures in the Corporate Scorecard.
City officials communicate the strategy through the Corporate Scorecard. The city’s strategy is
implemented through the Focus Area plans and Key Business Unit (KBU) and Support Unit plans.
This is all included within the Strategic Operating Plan [SOP].
Key Business Units, Support Business Units and divisions within the City Manager’s office submit
annual business plans that describe how the organization provides services and programs. The plans
include how these units will implement various strategic and organizational initiatives [projects] that
are associated with different levels of the strategy implementation system.
Initial Strategy Execution – Early 1990’s
The initial strategy execution effort was led by the city’s deputy city manager. The city’s mayor and
city council selected five key areas for strategic focus for their first Balanced Scorecard from a larger
list of fifteen potential focus areas presented to them by the senior staff. These were the five strategic
themes they selected in the early 1990’s: 1
1. Developing the local economy
2. Restructuring how city government was organized
3. Improving transportation
4. Improving safety
5. Improving [and preserving] older urban neighborhoods.
The deputy city manager formed a project team to refine the initial five strategic focus areas into the
city’s key strategic objectives in their first Balanced Scorecard for the city. This process involved
decomposing the strategic intent of the focus area into more specific objectives. The project team
structured the organization of objectives into multiple perspectives.
Charlotte has continued to use and improve their strategy management system for almost two
decades. The city’s approach to achieving their important objectives has continued to evolve and
become more business oriented. This evolution in city level strategy and governance now includes
the development of a strategic operating plan.
Charlotte FY2011 Preliminary Strategic Operating Plan2
The City of Charlotte’s strategic planning process now begins with an examination of organizational
mission, core values, and vision. It ends with the development of a plan that translates these concepts
into actions that align all elements of the city government organization. The strategic plan translates
mission into objectives, objectives into actions and actions into outcomes.
Developing an organizational strategy means making choices and decisions. Defining strategy means
addressing needs that will help achieve the desired future for the community and government
organization. The integration of resources and strategy demonstrates how the budget supports core
services, Council Priorities, and Focus Area goals. These services, priorities and focus area goals
enable achievement of the City’s vision and mission. The City Council’s Strategic Plan is a critical
tool used in making budget recommendations. City Strategy is documented in the Focus Area Plan
and includes corporate objectives that guide and direct planning, decision making, and the
accomplishment of the vision and mission.
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Vision
The City of Charlotte will be a model of excellence that puts citizens first.
Skilled, diverse, and motivated employees will be known for providing quality
and value in all areas of service. We will be a platform for vital economic
activity that gives Charlotte a competitive edge in the marketplace. We will
partner with citizens and businesses to make this a community of choice for
living, working, and leisure activities.
Mission
The mission of the City of Charlotte is to ensure the delivery of quality public
services that promote safety, health, and quality of life of its citizens. Serving
the Customer, Running the Business, Managing Resources, and Developing
Employees are four perspectives that characterize how success is measured.
The Key Business Unit pages that follow include performance measure
information that further illustrates the link between resources and performance.
Funding reductions have the ability to negatively impact targets within
Council Priorities and Focus Area Plans. Budget decisions impact how well
strategy is implemented and executed. How well budget allocations are linked
to strategy needs can either promote or interfere with the implementation
process. The Focus Area Plan is used to monitor success in the
accomplishment of City strategy and alignment with the City Council’s
priorities.
Focus Areas [Strategic Themes]
The five city focus areas and statement of the directional objective for each are:
 Economic Development
Charlotte will be the most prosperous and livable city for all citizens through quality
economic development
This focus area involves sustaining the prosperity and assuring the opportunity for
participation by all residents. It also involves a focus on keeping jobs and the tax base in
Charlotte by building and maintaining infrastructure, as well as building a skilled and
competitive workforce to encourage businesses to locate and remain in Charlotte.

Environment
Charlotte will become a national leader in environmental initiatives to preserve our natural
resources while balancing growth with sound fiscal policy
This focus area addresses safeguarding the environment, including protection of air and water
quality, land preservation, and energy and resource conservation. As one of the fastest
growing communities in the nation, protection of Charlotte’s environment is a priority that
includes adopting best practices and leading by example by delivering public services in a
manner based on sound environmental practices.

Transportation
Charlotte will be the premier city in the country integrating land use and transportation
choices
This focus area is broadly defined as addressing all issues related to transportation
opportunities and challenges, including maximizing public transit; implementing and
maintaining roads, adopting and implementing land-use policies to support growth and transit
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goals; and ensuring adequate pedestrian and bicycle connections while meeting stringent
federal air quality standards.

Community Safety
Charlotte will be the safest large city in America
In 1994, the City Council adopted a five-year community safety plan. That plan has been
expanded and combined with housing and neighborhood development initiatives and the
implementation of community problem-oriented policing. Therefore, the City considers
community safety from the perspective of the livability, stability, and economic viability of a
neighborhood—not just the lack or presence of criminal activity.

Housing and Neighborhood Development
Creating healthy and vibrant neighborhoods
This is the city’s comprehensive approach to meeting the economic development and quality
of life issues in the neighborhoods and business districts. This includes efforts such as
providing adequate code enforcement; developing strategies for affordable housing; and
requiring neighborhoods and business districts to take an active role in problem identification
and solution development.
Environmental Focus Area – Initiatives, Measures & Targets
The city’s preliminary FY2011 Strategic Operating Plan and FY 2011-2015 Capital Investment Plan
decomposes these five focus areas into further specificity. This is a clear example of how to translate
strategic intention and strategic themes into actionable projects with clear targets.
The first Strategic Operating Plan initiative for the environmental focus area is specified as:
ENV.1 - Support environmental sustainability by making wise decisions regarding growth
and development, recognizing the interrelationships between air quality, water resources,
land preservation, and energy and resource conservation.

ENV.1 Measure 1:
Percent of (1) residential and (2) office developments located within centers and
corridors to continue implementing Centers, Corridors, and Wedges Growth
Framework. (Establishing and promoting specific business centers, corridors and
wedges has been a strategy for several years.)
o
o
o
o
o
o

FY11 Target (1): Minimum of 40% of new housing unit permits and 70% of new
multi-family unit permits in the city located within the centers and corridors
FY09 Target: 40% and 70% respectively
FY09 Actual: 55.8% and 71.9% respectively
FY11 Target (2): Minimum of 75% of new office development square footage and
75% of new employment occurring in the centers and corridors
FY09 Target: 75% and 75% respectively
FY09 Actual: 97.6% and 91.4% respectively
ENV.1 Measure 2:
Percent of rezoning decisions consistent with adopted plans and/or staff
recommendation
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o
o
o

ENV.1 Measure 3:
Percent of rezoning decisions consistent with adopted environmentally sensitive site
design policies
o
o

FY11 Target: 95% of rezoning decisions consistent with adopted plans and/or staff
recommendation
FY09 Target: 95% of rezoning decisions consistent with adopted plans
FY09 Actual: 93.4% rezoning decisions consistent with adopted plans
FY11 Target: 80% of approved re-zonings incorporate environmentally sensitive site
design components as per the General Development Policies-Environment
FY09 Target: N/A – new measure for FY10
ENV.1 Measure 4:
Implement the General Development Policies Phase II - Environment
o
o
o
FY11 Target: Initiate strategies to address two additional General Development
Policies—Environment (GDP-E) and continue to focus on policies dealt with by
previous Focus Area Plan targets
FY09 Target: Initiated strategies to address five of the 15 GDP-E by June 2009
FY09 Actual: Initiated strategies to address six additional GDP-E
The second Environmental focus initiative in Charlotte’s FY2011 Strategic Operating Plan is:
ENV.2 - lead and support efforts to improve Charlotte’s city and regional air quality.

ENV.2 Measure 1:
Promote long-term reduction in ozone-causing emissions
o
o
o
o
o
o
o
o
FY11 Target (1): Implement projects in partnerships with business/management
organizations to encourage increases in travel by alternative modes to/from/within
two mixed-use activity centers by June 2011
FY09 Target: N/A – new measure for FY10
FY11 Target (2): Adopt and implement a revised Tree Ordinance that will help
improve air quality through the preservation and growth of Charlotte’s tree canopy
FY09 Target: Adopt revised Tree Ordinance by June 2008
FY09 Actual: Revised Tree Ordinance pending adoption
FY11 Target (3): Continue collaboration and participation with COG’s CONNECT
Regional Air Quality Work Team, the Regional Air Quality Board and Clean Air
Works, Mecklenburg County Division of Air Quality and the State of North Carolina
Division of Air Quality to develop and implement strategies to improve air quality
FY09 Target: N/A – new measure for FY10
FY11 Target (4): Implement the City’s Energy Efficiency and Conservation Block
Grant air quality projects
The third environmental focus area initiative in the city’s FY2011 Strategic Operating Plan is:
ENV.3 - Protect natural ecosystems and habitats, including the tree canopy

ENV.3 Measure 1:
Maintain a significant and healthy tree canopy
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
o
FY11 Target (1): Present Tree Appreciation Awards in June to developers and
persons for exceptional tree preservation, tree planting, citizen contributions and other
outstanding achievements that enhance Charlotte’s tree canopy
o
FY11 Target (2): Adopt an overall tree canopy goal for Charlotte and measure the
effectiveness of the newly revised tree ordinance meeting the goal
ENV.3 Measure 2:
Protect stream corridors, ponds, and wetlands through public acquisition of additional
conservation easements and enhancing existing buffers
o
o

FY11 Target: Meet mitigation requirements through local rather than state level
restoration efforts 100% of the time when streams are negatively impacted by City
projects
FY09 Target: N/A – new measure for FY10
ENV.3 Measure 3:
Maintain permit compliance with treated wastewater
o
o
o
FY11 Target: 100% compliance with National Pollutant Discharge Elimination
System permit requirements for all five wastewater plants
FY09 Target: 100% compliance
FY09 Actual: 5 violations - 99.9% compliance
The fourth environmental focus area initiative in the city’s FY2011 Strategic Operating Plan is:
ENV.4 - Lead by example, adopting sound environmental practices in City facilities and
operations

ENV.4 Measure 1:
Implement strategies to reduce City vehicle fleet emissions to improve air quality
o
o
o
o
o
o

FY11 Target (1): Reduce the amount of harmful emissions from the CATS bus fleet
by maintaining the 5% idling reduction from FY10 baseline data in CATS’ fixed bus
fleet, including emissions reduction equipment on the engines of all new fixed route
buses, and procuring hybrid buses as funding allows
FY09 Target: Reduce idling by 5% from FY07 baseline data in Charlotte Area Transit
System’s fixed route bus fleet
FY09 Actual: Reduced idling from 35.15% to 30.30%
FY11 Target (2): Improve the efficiency of the overall City fleet by purchasing
alternative fuel vehicles as funding allows and by seeking grant funding to outfit
current vehicles with emissions reducing technology
FY09 Target: Increase percentages of City fleet using alternative fuel or emission
efficient technologies
FY09 Actual: 37 hybrids; 337 flex fuel vehicles (excludes CATS)
ENV.4 Measure 2:
Incorporate environmentally responsible actions in the design, construction, and
operations of City facilities and in other operating practices
o
FY11 Target: Implement adopted Policy for Sustainable City Facilities and conduct
first year review of effectiveness
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
ENV.4 Measure 3:
Reduce greenhouse gas emissions from City facilities and operations
o
FY11 Target (1): Establish the City’s targets to reduce Greenhouse Gas Emissions for
City facilities and operations
o
FY11 Target (2): Implement the City’s Energy Efficiency and Conservation Block
Grant projects for City facilities
FY09 Target: Develop Greenhouse Gas Emissions Inventory Action Plan by
December 2008
FY09 Actual: Developed Greenhouse Gas Emissions Inventory Action Plan, as part of
Energy Strategy
o
o
o
o
o
o
o

o
o
FY11 Target: Achieve ISO 14001:2004 certification for the for the McDowell Creek
Wastewater Treatment Plant by December 2010
FY09 Target: Receive certification
FY09 Actual: Received Bio-solids ISO 14001:2004 certification
ENV.4 Measure 5:
Advance renewable energy projects, including biodiesel, methane, solar and geothermal
initiatives
o

FY11 Target (4): Increase recycling within City facilities
FY09 Target: N/A – new measure for FY10
ENV.4 Measure 4:
Operate best-in-class wastewater treatment facilities that continually seek efficiencies
and minimize environmental risk
o

FY11 Target (3): Develop and implement a City-wide environmentally preferable
purchasing policy by July 2010
FY09 Target: Develop pilot
FY09 Actual: Pilot program with Wake Forest and UNCC completed; assessing
software and methodologies for cost/benefits analysis
FY11 Target: Complete a master plan of Utilities’ properties viable technologies,
including financing models and implementation steps, by December 2010
ENV.4 Measure 6:
Develop and implement pilot project(s) for renewable energy
o
FY11 Target: Develop and implement a solar energy pilot project on airport-owned
property by December 2010
The fifth environmental focus area initiative in the city’s FY2011 Strategic Operating Plan is:
ENV.5 - Collaborate with local and regional public and private partners
and neighborhoods to enhance environmental quality and long-term sustainability

ENV.5 Measure 1:
Continue collaboration and actively participate in public and private sector
partnership’s environmental and visioning initiatives
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o FY11 Target (1): Continue collaboration and participation with Centralina Council of
Governments, Duke Energy, UNC-Charlotte, CPCC, CRVA Green Team, and other
partners’ current initiatives
o FY09 Target: Continue collaboration and participation with SEQL, Centralina
Council of Governments, Regional Visioning Council and other partners’ current
initiatives
o FY09 Actual: Active in COG-sponsored Regional Growth and Regional Environment
Cabinets; participated in CRVA Green Team, Coca-Cola “Recycle and Win,” CPCC,
Duke Energy and other partners’ current initiatives.
o FY11 Target (2): Implement the City’s Energy Efficiency and Conservation Block
Grant projects for energy investments in revitalization areas, the neighborhood energy
challenge, and catalyst projects

ENV.5 Measure 2:
Increase awareness of the environment as a priority for the community and the
organization
o FY11 Target: Continue implementing the internal and external communication plans,
including the Pledge to Improve Our Environment and the Energy Efficiency and
Conservation Block Grant public outreach and education campaign
o FY09 Target: Continue implementing the internal communication strategy for the
environment focus area
o FY09 Actual: Developed and distributed pledge cards to improve our environment,
dedicated employee CNet page to the Environment Focus Area, featured
environmental data in FYI and FYIcast, and Earth Day activities partner

ENV.5 Measure 3:
Continue a leadership role in regional water resources planning
o FY11 Target: Actively support North Carolina’s defense of the North Carolina versus
South Carolina water rights lawsuit to protect the interest of Utilities’ customers
o FY09 Target: Lead the group with Utilities’ staff as chair of the Water Management
Group and be actively involved in committee work in 2008
o FY09 Actual: Utilities’ staff led the Water Management Group

ENV.5 Measure 4:
In support of State recycling goals, increase single family recycling participation to
achieve a 20% increase in annual tonnage of recycled materials
o FY11 Target: Implement single-stream recycling collection and public education
programs by July 2010
o FY09 Target: Implement single-stream recycling program by July 2010
o FY09 Actual: N/A – (target is for single-stream - not yet implemented)

ENV.5 Measure 5:
Continue implementing the multi-family recycling education program
o FY11 Target: Educate 20 non-participating multi-family property managers on the
benefits of recycling by July 2010
o FY09 Target: Educate 20 non-participating multi-family property managers on the
benefits of recycling by July 2009
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o FY09 Actual: 46 managers trained (230% of target)
Charlotte City Case Analysis
This case illustrates the systematic methodology by which a city government can make practical use
of strategy execution methodology to work on achieving their critical objectives. What was called
“the Balanced Scorecard” in the early 1990’s has evolved by 2010 into a sophisticated strategy
management system that includes a corporate scorecard and a strategic operating plan in
combination with an operational budget and a capital expense budget. The case illustrates the
development of strategic themes, strategic objectives, thematic scorecards, departmental scorecards,
vertical and horizontal alignment, and the use of incentives, as well as placing city government
within a business context.
Cities in the U.S. compete with each other to attract new business and residential relocation of
taxpaying citizens. City government’s strategic themes, which they called focus areas, were
developed to help the city compete against other cities that were attempting to attract businesses and
residential relocation. The thematic scorecards were developed to increase city government’s focus
on what was important for it to establish its competitive advantage and improve its customer/citizen
satisfaction with the city and its services.
The cabinet level structure within which the relevant department heads met monthly to discuss
progress on thematic scorecards [focus areas] was an innovative approach to dissolving departmental
boundaries. It also expanded the department managers’ perception of their role, function and purpose.
This city government case has some elements that are relevant for China. For the decade prior to the
city manager’s initiation of the project, Charlotte had been purposefully attempting to achieve urban
revitalization and improvement of the city’s infrastructure. This infrastructure improvement included
transportation and new commercial real estate for office and retail space.
Interestingly, this infrastructure development corresponds to that of many medium to large cities in
China. These cities have benefited from government and private funding of their infrastructure
development in several areas, such as real estate, transportation and power generation. Low carbon
development of city sustainability is attracting a lot of publicity, education and conferences. The next
stage of developing city government effectiveness in China is likely to be in the arena of each city
government’s strategic management for low carbon sustainability.
Simply building more highways and developing more real estate will not be enough to effectively
compete for additional investment. Cities need to adjust their strategies for economic development to
include low carbon sustainability. Each city will need to develop its own its own low carbon
sustainability strategy. This will necessarily include the city’s value proposition for investment and
economic development. Each city may need to differentiate itself from other China cities competing
for business investment. The quality of each city’s management, their strategy for the city’s low
carbon future, and their ability to use a strategy management system that includes modern
management tools such as Strategy Maps and Balanced Scorecards, will have a direct impact on the
quality of life for the citizens of each city, and for the city’s successful low carbon economic
development.
Charlotte is an example of how the strategy execution methodology can be used to define the city’s
strategic vision, objectives, measures, projects and actions for achieving the vision by:
 setting clear objectives within focus areas that are strategically critical for the city
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




creating both vertical and horizontal alignment across departmental boundaries so that
goals are in alignment at different levels of the city’s organizational structure
establishing measures for tracking progress
allocating resources for strategic initiatives and projects that translate the critical
objectives into systematic action to achieve each objective
using incentives to motivate managers and employees to maintain focus and take effective
action to implement the projects that enable achievement of the critical objectives
continuing to modernize through evolution in how the strategy management methodology
is applied to the practical reality of managing a city into a successful future.
It is important to note that the most recent evolution of Charlotte’s focus areas and strategic themes
includes important areas critical for the future of China cities: economic development, energy and the
environment. The environmental initiatives and measures illustrate how Charlotte is focusing on
these areas for the immediate future.
China city governments can learn and deploy this methodology with the help of consultants who
transfer their knowledge and practical skills to executives, managers and internal project teams.
Using strategy execution methodology to guide low carbon economic and infrastructure development,
as well as create sustainable supplies of energy, food and water, may become a requirement for the
bulk of Chinese cities in the 21st century.
The remainder of this paper briefly summarizes two brief Chinese government cases, along with
illustrative strategy maps, to describe pioneering efforts by national and city government to learn and
deploy strategy execution methodology. The final section presents a strategy map template for low
carbon city sustainability, and summarizes a generic strategy for cities to consider as a starting point
for their journey.
China Government Case 1:
State Assets Supervision & Administration Commission [SASAC]
SASAC was set up in 2003 as the representative owner of China’s largest State Owned Enterprises.
The purpose of SASAC at that time was to improve SOE efficiency, profitability and effectiveness.
SASAC’s mandate is to own and manage these organizations in the public interest. Several
milestones for the evolution of SASAC are listed below:

2003 – SASAC holding companies and their thousands of subsidiaries earned an estimated
300 billion RMB in profit [~2.2% of GDP]

2004 – SASAC launched a project with several objectives, one of which was to improve its
performance evaluation system using the Balanced Scorecard framework.

2007 – SASAC organizations’ profitability grew to 1trillion RMB [~4% of GDP]

2007 – Premier Wen JiaBao began publicly emphasizing the strategic need for China’s SOEs
to balance economic development with environmental sustainability, stressing the national
need to improve energy efficiency 20% over a five year period

In 2008 – SASAC linked executive pay to the energy efficiency performance of the 1,000
most critical enterprises for energy consumption.
The SASAC performance evaluation of SOE project involved interviews of government officials and
development of a single strategy map and balanced scorecard for all national SOEs. The strategy
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map presented below in Exhibit 1 is representative of that which was developed for SASAC. It is
necessarily generic. The design process goes from top to bottom, while the causality process goes
from bottom to top. Each bubble represents a strategic objective the project team proposed to
SASAC executives. The typical commercial strategy map normally includes four layers of objectives,
called perspectives: Financial, Customer, Internal Process, and Learning & Growth. A fifth
perspective was added for this project: National Vision and Strategic Themes.
It is important to note the inclusion of the darkened objectives that are relevant for low carbon city
sustainability. The arrows going from lower objectives to higher objectives illustrate primary lines of
causality. Notice the causal linkages between the darkened objectives.
Exhibit 1: State Assets Supervision & Administration Commission
SASAC Strategy Map
Exhibit 1 might be considered a generic template for SOEs to initially consider when developing
their own customized strategy to fit their particular circumstances and financial resources, as well as
their competitive strengths and weaknesses.
China Government Case 2:
Qingdao Municipal Committee of the CPC
The Working Committee for Offices Directly under the Qingdao Municipal Committee of the CPC
began to implement the balanced scorecard in 2005. Qingdao was recognized as a Golden City in
2006. The Committee used and promoted the use of the balanced scorecard in a number of important
ways:
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by taking the leading position among Party and government organizations in China, thereby
strengthening and improving performance management for the Party and government
organizations
by fostering scientific development rationales, promoting social harmony and realizing sound
and rapid development
by demonstrating results in efficiency and effectiveness in areas such as
o administration (cost reduction of 6% annually)
o overall satisfaction (No. 1 ranking city)
o complaints reduced (down 15.8%).
Dr. Hou Yong-Ping led the Municipal Committee’s development of a project study and deployment
team for the balanced scorecard. In 2006, Dr.Hou invited Dr. Yong-Ling Sun to provide balanced
scorecard training, as well as feedback and guidance on the strategy map that the project team had
developed.
In 2007, Qingdao Municipal Committee of the CPC was awarded the China Star Award™ for
Strategy Focused Organizations. The Committee earned this award as a pioneer in using the
balanced scorecard tools and methodology to achieve government organization objectives. The
Committee applied their learning over a period of years to continue improving and expanding their
deployment of the balanced scorecard methodology. A strategy map, balanced scorecard and
initiatives for the Qingdao Municipal Committee of the CPC is presented below in Exhibit 2. Dr.
Hou presented this graphic when he received the China Star Award™.
Exhibit 2:
Qindao Municipal Committee of the CPC Strategy Map, BSC & Initiatives
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Strategy Map Template for Low Carbon City Sustainability
A new field is emerging, called Resilient Sustainability. Resilient Sustainability is focused on
comprehensively integrating three critical areas of knowledge, methodology and technology:
sustainability, resilience and strategy execution. Combining these three areas offers hope to cities
that are struggling to chart their strategic path through the murkiness into a more resilient and
sustainable future. The saying: “A picture is worth a thousand words,” can be usefully applied to
resilient sustainability for cities, in the form of a strategy map template. Exhibit 3 presents the first
strategy map template for low carbon sustainable city.
Exhibit 3:
Low Carbon Sustainable City Strategy Map Template
The strategy map template organizes likely areas for strategic objectives into five layers, called
perspectives. Depending on a city’s particular circumstances, there are six possible objective areas of
strategic interest for the top perspective – sustainability outcomes. These are organized into two
primary themes: develop green local economy and manage local risk :
1. jobs & the economy
2. infrastructure
3. energy,
4. water
5. food
6. shelter.
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The strategy map template identifies four strategic themes [focus areas] in the sustainability drivers
perspective:
1. adjust planning and approvals
2. use cleaner energy
3. optimize resource efficiency
4. accelerate resilience.
This template and the three associated government cases describe a generic strategy and practical
methodology worthy of consideration by cities and provinces embarking on the journey toward low
carbon sustainability.
1
For a case summary and analysis of the early deployment of strategy execution using the balanced scorecard
apporach at Charlotte, North Carolina, see the Government Applications of BSC section in Chapter 4 of Balanced
Scorecard and Strategy Execution: Applications in China [Beijing: China Machine Press, 2009 2 nd ed.] by Irv Beiman
and Yong-Ling Sun.
2
Charlotte Preliminary FY2011 Strategic Operating Plan and FY2011-2015 Capital Investment Plan, p.35.