Question

Volkswagen have all used the Balanced Scorecard. You are required to research and find information on how Volkswagen used this strategic planning tool and the benefits achieved.

What was the problem that the company was facing prior to implementation?

How did they go about the implementation and use of the Balanced Scorecard?

c)

Answer 1

1.Establish Direction:-

Develop a vision of the future along with strategies for producing the changes needed to achieve that vision.

2. Align:-

People Communicate the direction to all employees, create coalitions that understand the vision and are committed to achieving it.

3. Motivate and Inspire:-

Encourage people to move in the right direction by appealing to basic human needs, values and emotions.

The Eight Step Process for Leading Successful Change: John Kotter, Leading Change (Harvard Business Press).

1. Establish a Sense of Urgency

2. Form a Powerful Guiding Coalition

3. Create the Vision for Change and a Strategy for Achieving It

4. Communicate the Vision and Strategy

5. Empower Others to Act on the Vision and Strategy

6. Produce Short-Term Wins

7. Sustain the Effort: Produce Still More Change

8. Institutionalize the New Culture

Leadership Must Overcome Complacency (We’re doing OK) and Communicate the Urgency for Change: “Why” and “Why Now” Financial Challenges • Weak competitive position (profitability rank in industry) • High costs • Mediocre to poor quality • Stagnant or declining revenues Competitive Challenges • Traditional Competitors • New Competitors Technology Challenges • Lack of innovation • Threat from emerging technologies