Individual Assignment: Strategic Plan, Part III: Balanced Scorecard
Resources: Exhibit 7-1 in Ch. 7 of Strategic Management
YOUR REALLY NEED TO READ YOUR TEXTBOOK TO HELP WITH THIS ASSIGNMENT
IT IS IMPORTANT THAT YOU READ CHAPTER 7 TO UNDERSTAND HOW TO COMPLETE THE SCORECARD
Develop the strategic objectives for your business in the format of a balanced scorecard (create a table). The strategic objectives are measures of attaining your vision and mission. As you develop them consider the vision, mission, and values for your business and the outcomes of your SWOTT analysis. Consider the following four quadrants of the balanced scorecard when developing your strategic objectives:
o Shareholder Value or Financial Perspective, includes strategic objectives in areas such as:
- Market share
- Revenues and costs
- Competitive position
o Customer Value Perspective, includes strategic objectives in areas such as:
- Customer retention or turnover
- Customer satisfaction
- Customer value
o Process or Internal Operations Perspective, includes strategic objectives in areas such as:
- Measure of process performance
- Productivity or productivity improvement
- Operations metrics
o Learning and Growth (Employee) Perspective, includes strategic objectives in areas such as:
Employee turnover or retention
Level of organizational capability
Nature of organizational culture or climate
Develop at least three strategic objectives for each of the following four balanced scorecard areas identified above (so you need 3 for Financial, 3 for Customer, 3 for Process, and 3 for Learning and Growth). Your objectives should be selected, in part, based on an evaluation of a number of potential alternatives to the issues and/or opportunities identified in the SWOTT Analysis paper and table you completed in Week Three. Base your solutions on a ranking of alternative solutions that includes an identification of potential risks and mitigation plans, and a stakeholder analysis that includes mitigation and contingency strategies. You should also incorporate the ethical implications of your solutions into your selection.
o For each strategic objective, develop a metric and target using a balanced scorecard format. (For 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 (possibly for 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”…or… an increase of 2% per year for 3 years.)
BELOW IS AN EXAMPLE TABLE (You should have 4 table…each with 3 separate objectives….which means EACH objective MUST have a target, measure, and initiatives.
Financial Objectives (you should have 3 individual financial objectives)
|Increase Sales||8%||Yearly sales report||Hire more salespeople…..Increase advertising…|
|Financial Objective 2|
Customer Objectives…(You need 3)
Write a 700- to 1,050-word summary that explains your critical thinking on how you derived your objectives from your vision, mission, values, and SWOTT analysis. Include a table listing your objectives.
The words in the table do NOT count toward the minimal word requirement.
Format paper according to APA guidelines.
Review my post in the Main Forum regarding “Tips for Getting Good Grades on Your Assignments”
When developing your objectives think of this: Suppose you set an objective for me (your salesperson) to increase sales for Quarter 1. If I achieve my objective you will give me a $10,000 bonus . At the end of Quarter 1 I increased my sales by 0.01%…so I want my $10K bonus. Well you may not be too thrilled to give it to me because you wanted a more significant increase in sales. But you didn’t tell me that…you said increase sales and I did just that. When setting objectives for employees you want to be very specific…and each objective MUST MUST MUST have a specific target number. So you could have said I will get the bonus if I increase sales by 20% in Quarter 1. That is very measurable…you just look at my previous sales and my current sales…and you can tell without a doubt if the objective was met or not.
All objectives must be like this. If you have an objective to increase customer satisfaction…you have to come up with some way to quantify the specific target. For example, you could say that you objective is to achieve 98% customer satisfaction rating (based on a survey you create and distribute)…or it could be based on a 0% return rate. Each of these is a specific quantifiable measure…so if I were the customer service manager, You would only give me my $10k bonus if I achieve the stated objective. Remember that objectives are manager’s measuring sticks.
Objectives are typically SHORT TERM…so keep them to a year or less. Anything longer is too hard to target.
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