by team a4 fani dimopoulou thomas kandrikal surya saha ji shen ivaylo stoykov miia zhang winning...
TRANSCRIPT
By Team A4
Fani Dimopoulou
Thomas
Kandrikal
Surya Saha
Ji Shen
Ivaylo Stoykov
Miia Zhang
Winning Strategies Part 1
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SC
Advantages &
Disadvantages of BSC
Steps to minimise
disadvantages
Strategy deployment for
WaveRider
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Financial PerspectiveTo achieve our goals, How Should we appear to our shareholders?
Strategic goals
Objectives Measures Targets Initiatives
Adapted from the Balanced Scorecard by Robert S. Kaplan and Dave P. Norton. Harvard Business School Press. 1996.
Customer PerspectiveTo achieve our vision, How should we appear to our customers?
Strategic goals
Objectives Measures Targets Initiatives
Learning & Growth PerspectiveTo achieve our vision, How will we sustain our ability to change and improve?
Strategic goals
Objectives Measures Targets Initiatives
Business Process PerspectiveTo satisfy our customers and stakeholders, What business Process must we excel at?
Strategic goals
Objectives Measures Targets InitiativesVision
The BSC approach gives a broad view of the factors that lead to business success (Kaplan and Norton, 1996).
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Not only the financial measurements are considered but also the operational ones.
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ADVANTAGES
DISADVANTAGES
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Balanced outlook
Improve alignment of actions
into strategic goals
Identify priorities
Proactive approach
Employee perspective
Customer perspective
ScalabilityExpensive process
Time consuming
Subjective BSC can cause uncertainty
Imbalance b/n financial & non
financial measuresThe BSC changes over time
Possibly gamed by employees
Cost benefits not known
Employee & supplier contribution not
entirely recognised
Focus on top down performance measurements
S.M.A.R.T. / C.A.M.E.L.S. / POLICY DEPLOYMENT
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Choose non financial measures that look ahead alongside financial measures that looks behind
Manage gaming among employees by having threshold limits for measures
Combine dissimilar measures : formulaic and subjective measures need to be combined
Measures will change over time, so all measures need to be updated periodically
Test the business model statistically to validate the measure.
Trade off between generic and specific measures
Choose measures in context to a business model or to a firm’s strategy
Anticipate how the performance measurement system will change
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Strategy Number 3 deployment /BSC approach
WaveRider
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Str
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№ 3
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6/6 points have positive impact on the company
Total estimated expenses: £425k
Increase in operating profit due to retail price increase
European market is growing and WaveRider needs to penetrate abroad to gain market shareThis strategy proposes re-engineering of three departments
Decrease in distribution costs by changing the current distributor
Source: team’s discussion
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TH
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To achieve excellence
before, during and after the purchase
of the world’s
best RIB boats
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Financial PerspectiveTo achieve our goals, How Should we appear to our
shareholders?
Strategic goals
Objectives Measures Targets Initiatives
Increase netprofit margin
Increase in £profit
Increase 10%in op. margin
Profit/unit(retail price)
Increase ROCEIncrease in £
profitIncrease 15%
in ROCEDecrease stock
Adapted from the Balanced Scorecard by Robert S. Kaplan and Dave P. Norton. Harvard Business School Press. 1996.
Customer PerspectiveTo achieve our vision, How should we appear to our
customers?
Strategic goals
Objectives Measures Targets Initiatives
Increasepopularity in
EUIncrease sales
Increase 5%in sales
Promotion &EU distributor
Increasecustomer
satisfaction
Increase inSales /
Decrease incomplaints /
CustomerFeedback
6 sigmaInvest in
technologyLearning & Growth Perspective
To achieve our vision, How will we sustain our ability to changeand improve?
Strategic goals
Objectives Measures Targets Initiatives
Monitordemand for
boats
No of boatssold
1,500 boatsAdjust
discounts asneeded
Business Process PerspectiveTo satisfy our customers and stakeholders, What business
Process must we excel at?
Strategic goals
Objectives Measures Targets Initiatives
Increaseinterdepartmen
talperformance
Decrease laborcosts
Decrease 10%in totalsalaries
Financesoftware
Improveefficiency ofsales team
Increase salesIncrease 10%in internal &
external sales
Re-engineeringsales
department
Increase market share in Europe
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Vision
To achieve excellence before,during and after the purchaseof the world's best RIB boats
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Strategy № 3 proposes solutions to the majority of the problems risen by the board of
directors
It does not cover Production Director’s view of introducing new products (e.g. engines, clothes, e.tc.)
However,
It does not include measures for improving personnel’s performance as Human Resources Director pointed out that the company has the same employees since the beginning
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It is a short term strategy
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RE
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Bourne M. et al (2003) “Implementing performance measurement systems: a literature review”, International Journal of Business Performance Management, Vol. 5, No.1, pp. 42-57
Kaplan, R.S. and Norton, D.P. (1996) The Balanced Scorecard — Translating Strategy into Action. Harvard Business School Press, Boston, MA.
Ma, Y. & Xu, X. (2004) The advantages and Disadvantages of Balanced Scorecard and It’s Application, Journal of Shenyang Normal University Social Sciences Edition.
Mooraj S. et al (1999) "The Balanced Scorecard: a Necessary Good or an Unnecessary Evil?", European Management Journal Vol. 17, No. 5, pp. 481–491
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Thank you