Question

The Balanced Scorecard is a management system. It’s a way of looking at your organization that focuses on your big-picture strategic goals. It also helps you choose the right things to measure so that you can reach those goals.

1. Using the four perspectives, design a balanced scorecard for the organization you either work for or volunteer.
2. All of your strategic objectives should begin with an action word (Improve, Reduce, Increase, Optimize, Maximize, Minimize are examples.)
3. Complete your strategy map and identify the relationships among the strategy objectives you determined.

Answer 1

Solution :

The organisation chosen is a "Supermarket".

Financial perspective :

Objective : Increase sales to maximize profits

Strategy : Due to fall in profits over last few years, the supermarket has decided to increase the sales volumes by offering more discounts.

More sales generates more profits.

Customer perspective

Objective : Improve customer satisfaction

Strategy : The supermarket wants to increase the customer loyalty towards the supermarket. So, it has decided to launch a "customer loyalty program", where the customer accumulates points on every bill amount. The customers can redeem this points in the future for a discount or a gift.

Internal business perspective

Objective : Reduce the time spent in billing and also the time spent in addressing customer enquiries.

Strategy : At times, the customers get frustrated standing in the queues or spend more time in billing. The customers also relies on the staff to guide them to find the right product he wants or address his queries relating to the product.

In both the instances mentioned, the customer expects a quick response and support from the team.

Hence, the supermarket has decided to provide adequate training to the billing clerk and to the store staff so that the customer spends less time on these concerns. Also, the supermarket management has planned to increase the number of billing counters to avoid queues.

Growth perspective

Objective : Adding a new product line

Strategy : The supermarket has decided to venture into a new product line. It has decided to start a small eatery outside it's shop, so that customers can enjoy tasty foods after the purchase.

Relationship :

Comparing the objectives and perspectives as mentioned above, it is clear that the supermarket is striving to increase its market share by focusing on improving the number of customers and gaining customer loyalty to increase sales and profit.