1. Explain how the Voice of the Employee sup ports improved internal processes (Voice of the Business), and how the Voice of the Business supports customer satisfaction (Voice of the Customer). As stated by the United States Postal Service annual performance report, The Voice of the Customer goal category focuses Postal Service resources on growth to generate sufficient revenue to support the public service mission of universal service that “binds the nation together. ” Providing timely, consistent delivery across all classes of mail will increase customer satisfaction and generate growth in support of our central mission (2002).
The Voice of the Employee goal category focuses on creating a workplace environment that fosters a motivated, productive and inclusive workforce and embraces the values of fairness, opportunity, safety, and security. The Voice of the Business goal category focuses on maintaining the affordability of Postal Service products and services by improving productivity so as to control costs and improve contribution levels to grow business (USPS annual performance report, 2002). For each Voice, a goal statement focuses on the overall performance sought.
For Voice of the Customer, the goal is to provide services that meet the needs of different customers in competitive markets and grow the revenue necessary to support the public service mission of the Postal Service. For Voice of the Employee, the goal is for a motivated, productive and inclusive workforce and a goal of affordability for the Voice of the Business. 2. While Figure 8. 14 shows only representative measures associated with the balanced scorecard, suggest some other measures that might be included, using your knowledge of postal operations.
Traditionally, performance measures used to assess success were financial in nature. This allowed only one view of what happened. The measure is complete only at the moment, and there are limited indications where current operations are effective or ineffective as the measures are historical in nature. Financial measures are outcome measures that show what has happened in the past. A more forward looking set of performance measures tells managers and employees where they are headed, what aspects of the organization are succeeding, and what aspects need improvement to effect future successful outcomes.
For example, customer satisfaction levels tell us something about the future predisposition of customers to use our service in the future, which relates to future financial measures. In the same manner, if we know there is a connection between meeting customer requirements and internal process measures that are tracked, and then there is a clear sense of what we need to do in managing our processes in order to meet customer needs (Thompson & Mathys, 2006). 3. Note what are some of the advantages and disadvantages of using a Balanced Scorecard approach.
The first advantage of using the balanced scorecard method is that by looking at four aspects of a company’s performance, you really do get a balanced view of company performance. Unlike traditional methods of tracking the financial health of a business, the balanced scorecard gives you a full picture as to whether your company is meeting its objectives. While it may seem that a company is doing well financially, it may be that customer satisfaction is down, employee training is inadequate, or that the processes are outdated (Bowen, 2011).
As explained by Bowen (2011), by using a balanced scorecard approach, the immediate future isn’t the only thing being evaluated. Often, when an accountant sees the financial bottom line (perhaps the company isn’t doing well), suggestions are given that are immediate, but do not look at the long-term. Using balanced scorecards allows for stakeholders to determine the health of short, medium, and long-term objectives at a glance. Finally, by using a balanced scorecard, a company can be sure that any strategic action implemented matches the desired outcomes.
Will raising the price of a product help the bottom line of the company in the long run? It might, if the customer is satisfied with that product, or if the processes involved with creating that product make the product of a higher quality (Bowen, 2011). While there are many advantages to using balanced scorecards in your accounting toolbox, there are a few disadvantages to the method as well. First, the balanced scorecard takes forethought. It is not a tool you can just think up one night to solve a problem.
Instead, it is recommended that you hold a meeting to plan out what goals you would like to see your company reach in each of the four above areas. Once you have clearly stated objectives, you can then begin to break down these objectives in what you will need, financially, to bring these objectives to fruition. As explained by Bowen (2011), while the balanced scorecard gives you an overall view of the four areas for concern in business growth and development, these four areas do not paint the whole picture.
The financial information included on the scorecard is limited. Instead, to be successfully implemented, the balanced scorecard must be part of a bigger strategy for company growth that includes meticulous accounting methods. Many companies use metrics that are not applicable to their own situation. It is vitally important when using balanced scorecards to make the information being tracked applicable to your needs. Otherwise, the metrics will be meaningless.