Balanced Scorecard

Balanced Scorecard

Develop three strategic objectives for each of the four balanced scorecard areas using the Template provided by your instructor (please look at a post called “Balanced Scorecard Template” under Class Messages)

Create a minimum 1,050-word strategic objectives summary.

Consider the following strategic areas when developing your strategic objectives:

  • Shareholder Value or Financial Perspective, which includes strategic objectives in areas such as:
    • Market share
    • Revenues and costs
    • Profitability
    • Competitive position
  • Customer Value Perspective, which includes strategic objectives in areas such as:
    • Customer retention or turnover
    • Customer satisfaction
    • Customer value
  • Process or Internal Operations Perspective, which includes strategic objectives in areas such as:
    • Measure of process performance
    • Productivity or productivity improvement
    • Operations metrics
    • Impact of change on the organization
  • Learning and Growth (Employee) Perspective, which includes strategic objectives in areas such as:
    • Employee satisfaction
    • Employee turnover or retention
    • Level of organizational capability
    • Nature of organizational culture or climate
    • Technological innovation

Develop a specific metric and target for each strategic objective using a balanced scorecard format. 

Example: a strategic objective in the shareholder or financial perspective is to increase market share. A metric to actually measure this strategic objective of market share increase is, “The percentage of increase in market share.” The target is the specific number to be achieved in a particular time period. The target for the metric of “Increase market share” could be “Increase market share by 2% for each of the next 3 years” of an increase of 2% per year for 3 years.

Trends, Assumptions, and Risks of Hoosier Media, Inc’s business model

Assess, in no more than 350 words, trends, assumptions, and risks of Hoosier Media, Inc.’s business model after completing the strategic objectives for each area. 

 Example of what I need

 

Business Model and Strategic Plan Part III: Balanced Scorecard and Communication Plan

Successful organizations have effective strategic plans.  The strategic plan is a long-term plan that contains specific objectives and goals.  Organizations use tools like the SWOTT analysis and a balanced scorecard to determine strengths, weaknesses, opportunities, threats, trends, and risks.

The Balanced Scorecard

The Balanced Scorecard is a tool to manage and evaluate strategy.  It is valuable to organizations because it evaluates strategies from four perspectives: financial performance, customer knowledge, internal business processes, and learning and growth. The analysis derived from the scorecard requires the organization to seek answers and utilize the information, along with financial measures, to sufficiently and more efficiently evaluate strategies being implemented (David & David, 2017, “Chapter 9, Strategy Review, Evaluation, and Control”).

Financial Perspective

The first objective on the Balanced Scorecard is the financial perspective.  The financial perspective is determined by revenue growth and cost efficiency. Organizations focus their attention on revenue growth by increasing revenue opportunities, and improving customer value. The financial goal is to turn a profit and have the business growth.  With a solid financial plan, organizations will be ready to hire more employees and invest in marketing, technology, and employees.

Financial Perspective Measures Targets
Increase Profitability Market Value Increase by 2% over a period of 3 years
Increase Revenue Price of products Increase price of product
Lower Costs Decrease R & D Use existing technology and out-source non-technical positions

Customer Value

Customers make an organization successful.  The customer comes first and is an important asset to the organization.  In keeping with the mission and vision of an organization, they should do everything possible to increase their satisfaction.  Listening to customer feedback is valuable in maintaining relationships and improving satisfaction.  Organizations will grow their customer base and retain existing customers by paying attention to their needs and wants.

Customers Objectives Measures Targets
Grow business based on customer needs and wants Conduct surveys Increase profits by 2% per year over 3 years
Improve customer satisfaction Offer coupons and rewards Increase profits by 4% per year over 3 years
Customer retention Evaluate and address customer feedback Increase profits by 1% per year over 3 years

Process Objectives Perspective

            Employees are valuable to all organizations.  Utilizing employee feedback will increase productivity.

cLiving the mission and vision statement of the organization shows employees that the organization they work for has integrity and is honest.  Communicating with employees show the organization cares about them and what they think.  Employee buy-in will increase productivity.

Internal Business Process Objectives Measures Targets
Productivity Improvement Increase Productivity Increase productivity 3% per year over 3 years
Impact of Change on Organization Internal Employee Surveys Increase productivity by 2% per year over 3 years
Operational Excellence Communication with employees, Adhere to Mission and Vision statements Increase productivity by 2% per year over 3 years

Learning and Growth

            Creating job satisfaction and an organizational culture that is innovative and satisfying can increase learning and growth.  Employees are up to date personally on technology and expect no less from their employer.  Satisfied employees means less turnover.  Listening to all employees, no matter their position, will create a positive culture.  Annual evaluations and raises show the employees that the organization values their hard work.

Learning and Growth Objectives Measures Targets
Technological Innovation Stay up to date on technology, invest in R & D Increase profit by 3% per year over 3 years
Employee Turnover Conduct annual evaluations and pay increases Increase productivity by 3% per year over 3 years
Nature of Organizational Culture Assimilate and utilize feedback from employees, create team environment Increase productivity by 4% per year over 3 years

Conclusion

The Balanced Scorecard is essential to evaluating an organizations strategy.  By utilizing the Balanced Scorecard, organizations can scrutinize their financial perspective, customer value perspective, process operations perspective, and learning and growth perspective.  All of these perspectives can make an organization strong and successful.   All of the perspectives on the Balanced Scorecard are key to creating long-term goals for the organization.

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