Question

In: Accounting

Blake & McKenzie Tax Services is a company serving 72 clients (as of the beginning of...

Blake & McKenzie Tax Services is a company serving 72 clients (as of the beginning of last month) that is working on reorganizing its balanced scorecard. Currently, the company has the following performance metrics: online client satisfaction rating, client growth percentage (the number of total clients at the beginning of the current month compared to the number of total clients at the beginning of the prior month), market share, and profit margin. The company tracks these metrics from month to month. The company’s target client growth percentage is 4% per month. Its target average online client satisfaction rating is 4.8 stars. Last month, the company noted the following data related to these metrics:

New clients   7
Lost clients   4
Market share   1.52%
Profit margin   65%
Working together in teams, create strategic objectives that each of the company’s four performance metrics might represent.

Determine whether the company achieved its client growth percentage target last month.

Suppose that last month, the company received 55 five-star reviews, 10 four-star reviews, 3 three-star reviews, 1 two-star review, and 1 one-star review (some clients did not submit a review). Determine whether the company met its average online client satisfaction rating target.

Come up with at least one strategic initiative for the strategic objective of any performance metric target that you know the company did not meet last month.

Solutions

Expert Solution

Answer :

a. client review and client growth percentage metrics likely relate to a strategic objective to satisfy and increase clients. The market share and profit margin metrics likely relate to a strategic objective to increase profits.

b.

New clients during the month

7

Lost clients during the month

(4)

Increase in clients

3

Total clients at the beginning of last month

÷ 72

Client growth percentage last month

4.17%

target met

c.

Number of 5-star reviews

55 × 5 =

275

Number of 4-star reviews

10 × 4 =

40

Number of 3-star reviews

3 × 3 =

9

Number of 2-star reviews

1 × 2 =

2

Number of 1-star reviews

1 × 1 =

1

Sum total of stars

327

Total number of reviews

÷ 70

Average online client satisfaction rating

4.67

stars, target

not met

d.

Possible strategic initiatives for the strategic objective to satisfy clients:

• Implement additional training course on serving and interacting with clients

• Invite clients to provide additional feedback through a brief online survey

• Have the company owner send a personal apology to any clients providing a review of 2 stars or less, and offer them some kind of compensation; also ask for their feedback regarding what caused them dissatisfaction

ekkarill92 answered 2 years ago
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