Balanced Scorecard for Ford Motor Inc.
The Balanced Scorecard for Ford’s North American Business Unit
Table of Contents
Executive Summary…………………………………………………………………….2
Mission Statement………………………………………………………………………2
Balanced Scorecard…………………………………………………………………….3
Financial Perspective………………………………………………………………......5
Customer Perspective………………………………………………………………....10
Internal Business Process Perspective……………………………………………….12
Learning & Growth Perspective……………………………………………………..14
Conclusion………………………………………………………………………….….16
References……………………………………………………………………………..17
Executive Summary The Ford Motor Company, founded in 1903 by Henry Ford, is synonymous with American innovation and capitalism. With iconic branding and revolutionary manufacturing processes, Ford was the world’s No. 2 automaker for decades, second only to General Motors (“Ford Motor Company”, 2012). But the winds changed for the American automakers, the combinations of poor leadership, complacently, high manufacturing costs, poor customer satisfaction, labor disputes and ever stronger foreign competition from Toyota, Hyundai, Honda and others cost them valuable global market share and customer loyalty. By 2006 Ford did something that many thought was a desperate move by an ailing giant; they borrowed $23.6 billion. The loan became Ford’s lifeline when the global financial crisis of 2008 hit and the auto industry tanked with it. By 2009, Ford was the only American automaker that did not receive a government bailout, and by 2010 Ford’s US sales surpassed GM’s, a feat that hadn’t happened in over 50 years (“Ford Motor Company”, 2012). During this time of financial crisis, Ford has adopted a new strategy that it calls “ONE Ford” which has dramatically restructured the company’s mission and goals. By using the Balanced Scorecard approach Ford’s business unit leaders can translate the ONE Ford’s “lofty vision and strategy statements” into actionable “objectives and measures” at the local level (Kaplan
Table of Contents
Executive Summary…………………………………………………………………….2
Mission Statement………………………………………………………………………2
Balanced Scorecard…………………………………………………………………….3
Financial Perspective………………………………………………………………......5
Customer Perspective………………………………………………………………....10
Internal Business Process Perspective……………………………………………….12
Learning & Growth Perspective……………………………………………………..14
Conclusion………………………………………………………………………….….16
References……………………………………………………………………………..17
Executive Summary The Ford Motor Company, founded in 1903 by Henry Ford, is synonymous with American innovation and capitalism. With iconic branding and revolutionary manufacturing processes, Ford was the world’s No. 2 automaker for decades, second only to General Motors (“Ford Motor Company”, 2012). But the winds changed for the American automakers, the combinations of poor leadership, complacently, high manufacturing costs, poor customer satisfaction, labor disputes and ever stronger foreign competition from Toyota, Hyundai, Honda and others cost them valuable global market share and customer loyalty. By 2006 Ford did something that many thought was a desperate move by an ailing giant; they borrowed $23.6 billion. The loan became Ford’s lifeline when the global financial crisis of 2008 hit and the auto industry tanked with it. By 2009, Ford was the only American automaker that did not receive a government bailout, and by 2010 Ford’s US sales surpassed GM’s, a feat that hadn’t happened in over 50 years (“Ford Motor Company”, 2012). During this time of financial crisis, Ford has adopted a new strategy that it calls “ONE Ford” which has dramatically restructured the company’s mission and goals. By using the Balanced Scorecard approach Ford’s business unit leaders can translate the ONE Ford’s “lofty vision and strategy statements” into actionable “objectives and measures” at the local level (Kaplan
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