The Balanced Scorecard One of the best tools a manager has is a balanced scoreca
ID: 365310 • Letter: T
Question
The Balanced Scorecard
One of the best tools a manager has is a balanced scorecard.
Address how the scorecard approach fits in to the control function of management.
Create a balanced scorecard and explain how the use of a balanced scorecard could help to measure and possibly improve the turnover of employees. The scorecard will include objectives, measures, and targets.
Answer these questions from the following scenario:
You are the manager of the northern branch of the Laurel City Bowling Alleys. The owner, Jill Espy, has 4 other bowling alleys around town. The average employee assigned to the concession stand of all the Laurel City Bowling Alleys lasts approximately 3 years. However, in your branch, the average employee lasts only 8 months. Jill is concerned about the lack of retention of concession employees especially since training new employees is costly to the company and this high turnover is costing her money that could be better spent elsewhere.
You have talked with your current concession staff and have learned that pay and scheduling may have some effect on the turnover rate. Employees feel that the pay is low and the scheduling is erratic making it difficult to make plans outside of work. You know that employees do not benefit from pay raises because they tend to leave before being at the alleys for a year.
One worker indicated that many of the workers do not know how to handle difficult customers. It makes them not want to come to work. At the time, the focus seems to be on getting the job done rather on customer service.
Explanation / Answer
BALANCED SCORECARD:
Strategy
Goal-What we want to accomplish
Objective-How are we going to accomplish the goal
Measure
Target
Customer Perspective
Collaborate with customers to identify and understand their needs and expectations. Deliver timely, accurately and high-quality services to increase value and achieve customer satisfaction.
Identify customer needs and inefficiencies and implement solutions
Map existing business process
Number of business process mapped
4
Facilitate change management
Change management plan was implemented
Pass / Fail
Build effective customer relationships
Increase customer contacts
Number of new CDoT employee contacts
4
Learn and apply communication techniques
Number of feedback sessions
2 per person
Financial Perspective
Allocate budget to support business goals and objectives. Ensure financial benefits are maximised through smart, transparent ways.
Demonstrate cost saving due to streamlining business process
Use process value analysis on change initiatives
Percent of change initiative that produced cost savings
75%
Awareness of cost and benefits of implementation
Use cost-benefit analysis to make smart decision
Percent of change initiative that produced cost-benefit
50%
Business Process Perspective
Utilise innovation to advance and improve the internal process to keep business moving forward. Implement strategies to maximise the resources and infrastructure.
Improve process delivery
Create DoHRA business project management process
Process is implemented
Pass / Fail
Effective implementation of initiatives
Initiative delivered project goals
% of goal met
90%
Initiative delivered on time
% of initiative delivered on time
90%
Initiative delivered on budget
% of initiative delivered on budget
90%
Learning and Growth Perspective
Promote a culture and working environment that embraces growth and development to meet the individual need of our employees, resulting in employee engagement and overall employee satisfaction
Increase skill and knowledge
Receive process improvement and project management training
% of person who attended training
100%
Search out training opportunities
Accomplish our goals and finish projects
Create project plan for initiatives
% of initiative with a project plan
50%
Communicate the project status and barriers to decision makers
% of reports delivered on time
95%
Inferences:
Scorecard fits into this approach because high turnout of an employee can be properly addressed by having a balanced scorecard which may consist of the financial performance, customer concerns, business process optimization, and enhancement of learning tools and mechanisms. High labor turnout costs more to an organization and by using this method of strategic management, communication and feedback process between the employees and management can be improved so lower turnout rate.
The scorecard consist of the following:
Financial perspective due to high turnover and it consists of training cost and retention cost due to this situation.The objective should be to have prudence financial management on human resource.Measures should be how much pay can increase to satisfy the employee so that they can continue and retention rate.Target is high retention rate with appropriate increase in pay.
Business process perspective: It should be consist of how will be the impact of these changes on business. The objective should be to have continuity in business, measures is how much target has been achieved due to this change and target is having higher goals to achieve the business.
Customer Perspective to satisfy the customers. The objective is to provide an environment where customers query can be solved. Measures are how much increase in customer satisfaction and the target is solving query of each and every customer and providing better services.
Learning and Growth Perspective is employee satisfaction, employee retention, and knowledge management.This is a focus portion in this case. The objective should be high employee retention by satisfying employee. Measures should be judged by turnout rate and the target is satisfying employee by listening to their concern and doing what is feasible for the organization.
Strategy
Goal-What we want to accomplish
Objective-How are we going to accomplish the goal
Measure
Target
Customer Perspective
Collaborate with customers to identify and understand their needs and expectations. Deliver timely, accurately and high-quality services to increase value and achieve customer satisfaction.
Identify customer needs and inefficiencies and implement solutions
Map existing business process
Number of business process mapped
4
Facilitate change management
Change management plan was implemented
Pass / Fail
Build effective customer relationships
Increase customer contacts
Number of new CDoT employee contacts
4
Learn and apply communication techniques
Number of feedback sessions
2 per person
Financial Perspective
Allocate budget to support business goals and objectives. Ensure financial benefits are maximised through smart, transparent ways.
Demonstrate cost saving due to streamlining business process
Use process value analysis on change initiatives
Percent of change initiative that produced cost savings
75%
Awareness of cost and benefits of implementation
Use cost-benefit analysis to make smart decision
Percent of change initiative that produced cost-benefit
50%
Business Process Perspective
Utilise innovation to advance and improve the internal process to keep business moving forward. Implement strategies to maximise the resources and infrastructure.
Improve process delivery
Create DoHRA business project management process
Process is implemented
Pass / Fail
Effective implementation of initiatives
Initiative delivered project goals
% of goal met
90%
Initiative delivered on time
% of initiative delivered on time
90%
Initiative delivered on budget
% of initiative delivered on budget
90%
Learning and Growth Perspective
Promote a culture and working environment that embraces growth and development to meet the individual need of our employees, resulting in employee engagement and overall employee satisfaction
Increase skill and knowledge
Receive process improvement and project management training
% of person who attended training
100%
Search out training opportunities
Accomplish our goals and finish projects
Create project plan for initiatives
% of initiative with a project plan
50%
Communicate the project status and barriers to decision makers
% of reports delivered on time
95%
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