Customer perspectives revisited Essay
Customer perspectives revisited
When a business loses the drive to pursue and retain customers, it loses its soul and therefore the right to exist. No business can function, thrive or prosper without a reliable customer base. In the customer perspective theory BSC makes it clear that it is not only essential to know who the target customers are and how a business can better serve that customer base. The BSC identifies three primary ways of providing services to customers in the Balance scorecard system. Operational excellence emphasizes low prices, and convenience ( Nevin 2003). Product leadership focuses on providing the best product in the market.
In customer intimacy the business stresses the development of long term relationships with the customer, doing whatever is necessary to know what it is that the customer truly wants. It does so while maintaining as much knowledge as possible of its customers. The reason for these efforts in acquiring superior customer knowledge comes down to the point that the businesses are attempting to provide as much satisfaction to the customers as possible. The other reasons include customer loyalty and the need for more market share. (Balancedscorecard. org. )
INTERNAL PROCESS PERSPECTIVE REVISITED: This area focuses on identification of the things that would need to be done in order to continue to add value to the customers and ultimately to the shareholders (Nevin 2003). The internal process aims to serve the customer and increase the total value of the organization, as well as keep record of the companies progress. The team’s objective is primarily to develop better products, to find better ways of manufacturing better products. To find better ways of delivering their products, and to find better ways of delivering better services after the products had been delivered.
LEARNING AND GROWTH PERSPECTIVE REVISITED: This may actually be the most important aspect of the entire process. Organizations would get as far as their employees could take them. A team that lacks knowledge may not be able to provide the necessary services required by the customers. Therefore genuine effort must be made to keep employees abreast of necessary information. And that is what the learning and growth perspective tries to define. It emphasizes that information be made available to the employees. It requires the employees skills be as sharp as necessary. It does not want employees to be ignored.
Again the key here is that any organization would only go as far as the employees could take it. With adequate care and education, employees can only do better for the company. It is important to point out that the BSC system does not ignore the financial perspective. But the key is that when a company has satisfied the other objectives, that company stand a pretty good chance of doing well financially. BALANCE SCORECARD AS A STRATEGIC MANAGEMENT SYSTEM: Obviously putting a business and management strategy is important, but no strategy will function if it does not actually get implemented. So the first step in resolving the issue of non-implementation, is to identify what the potential problems towards implementation may be, and then address those issues.
According to fortune magazine (1999) about 70% of strategies are poorly executed, so how can it be executed better. Both the team and the management must pay attention to the four barriers: the vision barrier, the people barrier, the resource barrier, and the management barrier. (1) VISION BARRIER: To overcome the vision barrier, employees must not be kept in the dark. The BSC wants management to be very clear as to what the vision is. When possible place a figure on the vision .
For instance if the goal is to manufacture products without defects 90 % of the time, then it may be made clearer by stating exactly that. That figure of 90% translates the vision to a level that could not be misunderstood. Give the employees the appropriate knowledge base and strategic structure, that makes the entire strategic objective easier to follow. Management should facilitate a total understanding of the strategy and the whole structure in order to enable all the team members to fully understand the strategy and therefore work towards achieving it as a unit. (Kaplan & Norton).
University/College: University of Arkansas System
Type of paper: Thesis/Dissertation Chapter
Date: 17 May 2017
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