Balanced Scorecard 1
Balanced Scorecard
Patricia Bernard
BUS/475Integrated Business Topics
David Nimmo
December 14, 2009
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Student'ssignature (name typed here is equivalent to a signature): ____Patricia Bernard______
Balanced Scorecard
Southern Cab Service must go through several phases before becoming a well known and reliable organization for customers in Louisiana. The organization must be analyzed using a balance scorecard. A balanced scorecard can be a unique and helpful tool in improving an organization’s objectives and strategies. The scorecard provides a method of controlling and monitoring the organizational process. Southern Cab Service will be able to use the balance scorecard to communicate with employees, while keeping them up-to-date on operations, and strategic implementation.
A balance scorecard provides stakeholders with valuable information of how an organization is developing towards their strategic goals. In a balance scorecard, four perspectives are examined. The financial perspective involves strategic objectives such as market share, revenues and costs, profitability and competitive position. The second perspective to be examined is the customer perspective which involves customer retention, customer satisfaction, and customer value are examined. The third perspective is the internal perspective which includes measuring the process of performance, productivity improvement, and operations metrics. The fourth perspective is the learning and growth perspective. The perspective includes employee satisfaction, employee turnover, level of organization, nature of organization culture, and technological innovation (Pearce & Robinson, 2005). The balance scorecard for Southern Cab Service consists of the four perspectives which will create a solid picture of long-term goals of the company.
Financial
The financial perspective is the ultimate goal of a company. This perspective is driven by revenue growth and cost efficiency. Within the financial objectives, Southern Cab Service is committed to cost efficiency by improving cost structure, and increasing asset utilization. The company can focus on revenue growth by expanding revenue opportunities, and enhancing customer value. The financial goal of Southern Cab Service is to become profitable and expand into a second location in three years. With financial plans to expand, the company must be prepared to employ more employees and invest in more equipment for the business. Southern Cab Service must also consider competitive position. Determining where the company will be compared to other cab services in Louisiana, is an important factor to consider. New innovative ideas can increase the company’s financial profits and have the company soaring to new heights.
Customer
Southern Cab Service acknowledges the customer is what makes our company successful. The organization believes in customer satisfaction and safety. By helping our customers to feel safe while traveling with us will lead to a satisfying experience and will create customer loyalty in the future. Southern Cab Service will provide customer satisfaction and quality service to create a safe and reliable experience for all customers. The customer perspective will include measuring the level of customer satisfaction, and customer retention. The balance scorecard will create a visual image of how successful Southern Cab Service can be.
The customer perspective can be viewed as how the customer sees our company. By stepping into the customer’s shoes will help draw a picture of the customer’s perspective. The balance scorecard will determine a clear picture of the customer’s perspective of Southern Cab Service.
Internal Process
This process will determine how Southern Cab Service will rank in the transportation market. Although Southern Cab Service will be new to the transportation market, this process will help the business structure to form a solid foundation. This process examines and focuses on the most critical aspects that would make the company successful. Southern Cab Service must determine what the company will excel at the most. This critical piece of information will separate the company from the competition. The balance scorecard will help determine the unique factors that the company possesses compared to the other cab services in Louisiana.
Learning and Growth
After Southern Cab Service is considered an established entity, the company will need to make sure all employees have the proper training and ongoing training available. Employees must remain certified in all areas of the business in order to maintain a safe operating facility. Managers will be trained on effective leadership skills and management skills. All employees will be trained on proper communication skills and customer satisfaction. Training requirements will be updated annually for employees to remain in compliance with company policy.
The balanced scorecard is an added tool in creating successful short and long-term goals. This scorecard will provide direction for Southern Cab Service and will lead to a successful organization.
Vision:
The vision statement is for Southern Cab Service to be Louisiana’s number one choice for quality cab service.
Mission:
Southern Cab Service’s mission statement is to provide safe and quality service to all customers in an effective and efficient manner while transporting customers to their desired destinations.
Southern Cab Service vows to create a safe riding experience for all customers . The company will reach this goal by making sure drivers have the proper training and are not overworked . The company will monitor the demand of our cab service annually to determine the profit made by the company and determine whether or not to expand to a second location. Customers and drivers will be able to feel safe knowing they are in good hands. The company’s objective of quality service speaks in the company’s mission statement, allowing the organization to maintain a suitable objective. The objective of offering quality service to all customers is the law of Southern Cab Service.
Southern Cab Service Balance Scorecard
Financial / Increase profitability / Market value / % in market share / 2% / 3% / 5%
Increase revenue / Price of vehicles / % of vehicles / 1% / 2% / 3%
Lowest costs / Cab fares / % of fares collected / 80% / 92% / 100%
Customer / On-time cabs / Arrive rating / Customer surveys / 80% / 85% / 100%
Lowest prices / Customer ranking / Customer surveys / 80% / 85% / 100%
Safety / Number of customers / Rank all customers satisfied and dissatisfied / 80% / 90% / 100%
Internal / Improve turn around / On time pickup and arrive / % of on time arrival and pickups / 85% / 90% / 100%
Communication / Effective communication / Feedback from customers and employees regarding communication / 75% / 80% / 95%
Reliable services / Skills with employees/customer monitor reliable service through surveys / % of satisfied customers who think our services are reliable / 80% / 90% / 95%
Learning & Growth / All employees receive proper training / Provide clear understandable instruction / Employee training program / 80% / 85% / 90%
Evaluations / Customer and employee feedback / Performance surveys (excellent =5 to poor =1 / 85% / 90% / 95%
Ensure effective customer service skills / Encourage communication both internal and external / Monitor employee feedback and involvement / 85% / 90% / 95%
Reference
Pearce, J. and Robinson, R, 2005). Strategic Management (9th ed) McGraw Hill, 2005 Boston, MA