- April 15, 2014
- Posted by: essay
- Category: Term paper writing
Each of the companies in the considered case performed its own implementation of balanced scorecard, and focused on areas which were more important for the organization at that time. Hyde Park Electronics in its strategy emphasized operational quality ”“ the company has developed the largest number of measures and invested a lot of resource and effort into this area. The issues of labor efficiency and manufacturing efficiency were critical for the success of Hyde Park Electronics (Gumbus & Lussier, 2006), and this area was likely to be the key contributor to improved performance.
In the case of Futura Industries, core perspective contributing to the improved performance was learning and growth. The company’s leadership pronounced that employee loyalty and performance were the key to customer satisfaction and overall market success. Major metrics and changes related to employee performance and loyalty belonged to the area of learning and growth. Futura Industries developed this area and used balanced scorecard as an instrument for aligning values and strategy.
At SGC, the key contributor to improved performance was the new dimension developed by the managers of this company ”“ core values. Initial goal of SGC leadership was directly related to this new dimension, and the company has successful adapted balanced scorecard approachÂ to match its needs. The focus on the dimension of core values allowed SGC to perform effective organizational change and establish viable organizational culture. Other four dimensions were driven by the development of core values.
With regard to Hyde Park Electronics, it can be recommended for the company’s management to adopt even more customer-focused position, since most measures of customer satisfaction are associated with financial results. However, the company could also track the number of repeat purchases, and perform surveys of customer opinion in order to analyze satisfaction from a qualitative perspective.
In the case of Futura Industries, employee-focused and customer-focused perspective was chosen. The analysis of customer perspective was very in-depth and detailed, but the customer-focused metrics of this company lacked direct linkage to financial results. For Futura Industries, it can be recommended to add the metric of customer profitability (dollars earned or dollars lost associated with the customer) (Kaplan, 2005) or the profitability of groups of customers.
The management of SGC was focusing mostly not on metrics, but on the dynamics of change and development. The set of metrics SGC used for measuring customer satisfaction was diverse, but it reflected mostly operational aspects. The study of customer profiles, expectations and needs would significantly contribute to SGC’s effectiveness; in particular, such measures as customer profitability, customer loyalty and customer expectations could be useful for SGC.