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Balanced Scorecard: Translating Strategy into Performance

Balanced Scorecard is more than a psychological foreplay for employees within the company. It allows improvising company successes with parameters that are a part of the day-to-day operations, which form the basics but yet go through unnoticed. BSC allows companies to augment the change with specific guided regions they wish to play with. The change towards customer eccentricity has changed company thoughts to be weighted on the scales of asking how company strategizes to provide value to its customers (Niven, 2006).  The article analyses the use of BSC in three SME and small companies which have brought drastic changes in the way they did business.

HYDE PARK ELECTRONICS

The company which was running through its transitional stage adapted the BSC with its CEO Vincent C. Lewis corroborating the change. The basic transformation that BSC brought about was of the change in Operational Quality of the company processes and product developments. The company evaluated the Manufacturing\Labor efficiency and the offsets of the scraps from the assembly line. Each was a dimension which the company wished to bring about on ordeal of the BSC. The company brought about changes in the infrastructural staff and manufacturing efficiency leading substantiated growth in all the segments. The efficiency of the staff was offset in such a manner that each segment of the business seemed to take its place in the business puzzle properly.

The public display of data (Gumbus & Lussier, 2006) seemed to be much more operative and profit centric which could have offset the charge of employee turnover rate. But the communication of the company management clearly identifying what was expected slated the measures and benefits for all. This instigation of company operatives lead to a much more customer-centric result as new product could be brought to the market at the right time. If the company operative changes had not been dimensional and timely the results might have been drastically reversed. Though, the key contributor in part of the BSC looks as the change in operational quality management but behind the curtains is the timely and apt internal communication factor that had imparted and ignited growth and performance management.

One thing that could have further upped the numbers other than then SMART goals the company set was employee empowerment by allowing decisions on the assembly line itself. As these employees work out on the assembly lines, they would have known better where and how scrap elimination could could have taken place leading to adjunct further growth.

FUTURA INDUSTRIES

From a niche market of multiple markets the basic arena that the company wished to underscore its competitors was in hiring and retaining the best of the employees and devoting those employees to the satisfaction of the customers. This was much to the fact that the company had already gained strengths in its operational capabilities, but needed to gear those capabilities with the decisive factor the man himself (Stewart, 1999). Substantiating employee management in an industry where employee turnover rate hovers around 50%, the task seems daunting on keeping the best resource intact and jutting maximum support to them. Yet the company is able to alienate the factor by surveying its resources on their managers and reviewing the employees on their birthdays. Along with this growth in the role is cemented on skills attained contrast to seniority.

This allows the company to have more competitive employees providing much highly presumed service to its customer, hence obtaining score on the other card as well.  This factor looks as the company is building on its strength to outclass its competitors and bring in an entry-barrier to business, yet this succession to develop its employee strength in turn is reciprocating to customers by products and services being provided by a robust level of manpower. Strengthening out its employees evenly on the floor the company could have used the customer reviews it collects personally and through outsourced surveys to be marked as an honor for the servicing employee, hence creating augmented spur for development and growth.

SGC

Honored with Balanced Scorecard Collaborative Hall of Fame winner, the company stands as a role mode for small businesses (Gumbus & Lussier, 2006).  Rather than instigating its success on the four pillars of the Balanced Scorecard it visualizes its success on the factor of Core Values. This was incorporated by getting the BSC to be a part of the employee involvement and performance rather than the management tool itself. This paved the path to the core values being implemented in such a manner that the BSC provided strategic direction for the company and itself aligned performance compensation to the BSC. In order to gain and maintain the success in Not-for-Concentrated juice market, the Core values were subjected to the test of time so that the feedback was subjected to productivity which in itself resulted for customer satisfaction. This pivotal idea was the enriching point of the success to the company’s stand to reach the BSC Hall of Fame. With such instrumental role plays, if external communicative collaboration with suppliers and distributors could have been done then it could have lent its hand in reaching the leader position in the market.

REFERENCES

Niven P.R. (2006). Balanced Scorecard: Customer Perspective Retrieved. May 2, 2010.

From http://www.epmreview.com/Resources/Articles/Customer-Perspective.html#

Gumbus A. & Lussier R.N. (2006) Entrepreneurs Use a Balanced Scorecard to Translate Strategy into Performance Journal of Small Business Management, 44 (3), 407- 425.

Stewart T.A. (1999) Intellectual Capital New York, NY: Currency Doubleday

Gumbus A. & Lussier R.N. (2006) Entrepreneurs Use a Balanced Scorecard to Translate Strategy into Performance Journal of Small Business Management, 44 (3), 407- 425.

 

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