June 11, 2013
Dr. Koshy Joseph-Vaidyan
Strategic Plan, Part III: Balanced Scorecard
The Balanced Scorecard is a technique used in strategic planning and management system used comprehensively worldwide in business management, government entities and non-profit organizations to align the organizational performance to the corporate vision and its strategic goals. It is “A set of four measures directly linked to a company’s growth” (Pearce & Robinson, 2009, pp202).
Financial Perspective – Shareholder’s Value
The Balanced Scorecard or “dashboard” gives managers and executives a “balanced” view of a company’s business activity and performance, in alignment to the vision and strategy of the organization. The most important responsibility a company has it to increase net revenues and attain financial stability while providing a good product and service at a competitive price, providing customer satisfaction and benefit utilization.
To evaluate the financial stability of an organization, it is necessary to calculate the operating cost, growth revenue and return on interest and capital, and earnings per share. “If we succeed how we will look to our stakeholders” (BSI 2009, 5). Utilizing effective processes will enable the company to cut expenses by reducing costs, reducing cycle time, increasing revenues. These are some of the ways Los Primos Car-Wash will satisfy them as owners, in their position as stakeholders.
Customer Value Perspective
Customer satisfaction determines the success of a business. Delivering consistency in the value and quality of a product, gains the company a competitive edge in the market, differentiating its product with a brand or image in the market. It is how the company appeals to the customer, and the company’s ability to attract that customer creating a business relationship. Los Primos Car-Wash appeals to its customers because of the unique service and