Strategic Plan Part 3
Strategic Plan Part III: Balanced Scorecard
Bus/475
August 2, 2012
Olivia Scott
Strategic Plan Part III: Balanced Scorecard Similar to a vehicles control board, the balanced scorecard shows indicators of performance that gives an overview of the organization. A balanced scorecard, developed by Robert S. Kaplan and David P. Norton, is a tool that merges financial and nonfinancial measurements into a view of organizational performance linked to the strategy (Pearce & Robinson, 2009). Although several versions of balanced scorecards exist, each defines an organization’s mission, vision, and objectives. Demary & Sons’ mission is to deliver freight professionally and on time while committing to highway safety. The vision is to be among the safest trucking organizations while delivering customer and employee excellence by way of strong relationships. Perspectives of the Balanced Scorecard Managers use balanced scorecards to assess organizations from four perspectives. The perspectives include shareholder or financial, customer value, process or internal operations, and learning and growth perspectives (Pearce & Robinson, 2009). Organizations use different measures within each perspective depending upon topics of importance. The financial perspective includes objectives in areas, such as profitability, competitive position, and revenues and costs (Pearce & Robinson, 2009). Because Demary & Sons’ is a new company, building its cash flow, increasing value, and cost per account is important. The company aims to change break-even into profitability. In addition, the organization’s goal is to obtain accounts that will increase profits, decrease, expenses, and continue to set itself above the competition. Customer retention, customer satisfaction, and customer value is the foundation of customer value perspective (Pearce & Robinson, 2009). Demary & Sons intends to retain and satisfy customers by
Bus/475
August 2, 2012
Olivia Scott
Strategic Plan Part III: Balanced Scorecard Similar to a vehicles control board, the balanced scorecard shows indicators of performance that gives an overview of the organization. A balanced scorecard, developed by Robert S. Kaplan and David P. Norton, is a tool that merges financial and nonfinancial measurements into a view of organizational performance linked to the strategy (Pearce & Robinson, 2009). Although several versions of balanced scorecards exist, each defines an organization’s mission, vision, and objectives. Demary & Sons’ mission is to deliver freight professionally and on time while committing to highway safety. The vision is to be among the safest trucking organizations while delivering customer and employee excellence by way of strong relationships. Perspectives of the Balanced Scorecard Managers use balanced scorecards to assess organizations from four perspectives. The perspectives include shareholder or financial, customer value, process or internal operations, and learning and growth perspectives (Pearce & Robinson, 2009). Organizations use different measures within each perspective depending upon topics of importance. The financial perspective includes objectives in areas, such as profitability, competitive position, and revenues and costs (Pearce & Robinson, 2009). Because Demary & Sons’ is a new company, building its cash flow, increasing value, and cost per account is important. The company aims to change break-even into profitability. In addition, the organization’s goal is to obtain accounts that will increase profits, decrease, expenses, and continue to set itself above the competition. Customer retention, customer satisfaction, and customer value is the foundation of customer value perspective (Pearce & Robinson, 2009). Demary & Sons intends to retain and satisfy customers by
References: Pearce, J.A. & Robinson, R.B. (2009). Strategic Management Formulation, Implementation, and Control. (11th ed.). New York, NY. McGraw-Hill. Leavitt, Wendy. (2012). Technology and Profits: Crunching More Than Numbers. Retrieved from http://fleetowner.com/mag/fleet_technology_profit_crunching