Management Accounting Systems: a Balanced Scorecard
I New Customer Sign-ups I To ensure that the Tallest store is constantly growing in long-term fiscal terms with he addition of new customers I Monthly customer sign-ups I Sign-up of between 1 and 100 – satisfactory (Store is signing new business)Sign-up of more than 100 customers a month – good (Store is signing a large degree of new business every month) I The Tallest store should endeavourer to sign up new customers each month. Signing new business will ensure store financial growth both short-term and long- term.
I I Internal Business Process Perspective I Operational Efficiency I To minimize downtime spent during operational processes. I Speed In which certain processes are completed In. I Product repairs returned to customer within two weeks of faulty product deposit. Quick service completed within 10 minutes. Sales completed within 30 minutes. Visual merchandise updated within one day of display change decision. I When a customer deposits a product for send-away repair, Tallest will endeavourer to return the fault-free product to the customer within two weeks.
This will ensure customer service satisfaction and minimize average time spent by repair department and maxillae fluency. Quickly service should be completed within 10 minutes to maximize service department employee
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I Learning and Growth Perspective I Product Innovation I To ensure that Tallest store products are constantly updated with most recent Tallest wide changes I Speed in which Tallest store stocks and comes expertly knowledgeable In most recent Tallest wide stock changes and updates I Frequency of employee product training. Extensive Staff training should occur at least one week before new product release. Speed in which Tallest stocks within one week. This will ensure that the Tallest store is constantly perceived as a product leader.
I Employee Feedback I To ensure that the Tallest Store is able to constantly identify problematic areas and receive feedback regarding operational improvements. I Amount of employee feedback forums arranged. I Monthly staff feedback forums completed – exceptional (employees are given a frequent opportunity to voice opinions and improvement recommendations). Quarterly staff feedback forums – satisfactory (staff given opportunity to voice opinions though not frequent enough to ensure opinions are voiced in a timely manner).
I Staff should be given monthly opportunities to voice opinions. This will ensure that any ideas and hesitations are voiced within a timely manner to maximize the effectiveness of information received. I Customer Perspective I Customer Enquiry Outcome Satisfaction I To maximize customer satisfaction from dealing with Tallest, regardless of their enquiry I NAPS (Net Promoter Score) as dated by customer after each experience with Tallest I Average monthly NAPS Score between O and 6 – Detractors (Customer unhappy with service). No incentive rewarded.
Average monthly NAPS Score of 7 or 8 – Passive (Requirements met, service not above and beyond customer’s expectations). Partial incentive rewarded. Average monthly NAPS score of 9 or 10 – Advocate (Customer happy with service and more likely to recommend store to friends and family). Full incentive rewarded. I Every customer experience should result in an NAPS score of at least 7. Ensuring that customer’s perceive Tallest as a place where their needs are met with exceptional customer service will maximize the possibility that Tallest customers will recommend our store to others.
I Customer Resolution Efficiency I To minimize the amount of time a customer spends seeking the help required for their enquiry I FEM. (Effective Floor Management) Time I Average monthly FEM. Time within 30 seconds – exceptional (customer is immediately directed to correct location). Incentive rewarded. Average Monthly FEM. Time from 30 to 90 seconds – satisfactory (customer does not spend enough time waiting to be shown where to go that they start to become frustrated). Monthly Average FEM. Time more than 90 seconds – unsatisfactory. Customer is left waiting at entrance of store long enough to become frustrated). I Every customer that walks into the store should be greeted and directed to the correct area by a Tallest Representative within 30 seconds of entering the store. Ensuring that customer’s are greeted immediately will aim to show the customer that they are noticed and served as a priority. Directing customers to the correct service area will also aim to ensure that their time spent seeking a resolution is minimized.
This will ensure that customers perceive the Tallest store as a place here their needs are a first priority and maximize the chance that they will recommend the store to friends and family. I Justification of Balanced Scorecard Objectives and Measures Financial Perspective Revenue Growth – defining revenue growth as a financial objective first and foremost store upper management objective, it aims to align middle-management objectives with strategic objectives to ensure both short-term and long-term financial achievement.
Measuring financial growth allows a clear definition of objectives and, therefore, maximizes business unison. New Customer Sign-Ups – setting new customer sign-ups as an objective assists in the achievement of all levels of objectives; it clearly aligns strategic initiatives of revenue growth with middle- management objectives of an increased customer base. By measuring performance based on customer sign-ups, Tallest also is able to clearly portray its business mission to employees and maximize its ability to favorably influence its employee’s behavior to encourage organization values.
Internal Business Process Perspective Operational Efficiency – Tallest is able to communicate to staff that process efficiency is important by identifying process timeshare objectives as a performance agreement. This objective also communicates to employees the areas in which the store aims to be superior. By identifying these areas, the Tallest store is able to maximize employee attention and feedback in areas of importance.
Learning and Growth Perspective Product Innovation – By setting this objective, the Tallest store is ensuring that staff is motivated to ensure the store is constantly updated with the most recent Tallest changes. Identifying the time in which it takes the store to update itself as a performance measurement gives employees a specific method to follow by which the tore can achieve higher-level objectives. Employee Feedback – defining monthly employee feedback forums as a statewide objective allows the Tallest store to ensure management maintain staff feedback as a priority.
Monthly forums will allow the store to receive frequent and constant feedback from staff in regards to internal processes, which will, in turn, maximize the store’s ability to continuously develop. Customer Perspective Customer Enquiry Outcome Satisfaction – noting this objective in the Balanced Scorecard for the Tallest store will ensure that customer experience satisfaction is a constant priority for staff.