Strategic Plan, Part Iii: Balanced Scorecard Essay
Strategic Plan, Part Iii: Balanced Scorecard
A Balanced Scorecard is, “A set of four measures directly linked to a company’s strategy: financial performance, customer knowledge, internal business processes, and learning and growth” (Pearce & Robinson, 2009, p. 202). Healthy Place needs to develop a balanced scorecard in order to assist in defining the company’s mission, values, vision, and SWOTT analysis. Herein, the four perspectives, financial performance, customer knowledge, internal business processes, and learning and growth will be discussed as they relate to the Healthy Place mission, values, vision, and SWOTT analysis.
Shareholder Value/Financial Perspective
“If we succeed how we will look to our stakeholders” (BSI 2009, ¶5). Body by Design Health and Fitness will need to look at its asset utilization, customer satisfaction, increased net revenues, minimizing supply production, and achieving financial stability. One way to measure these items is to monitor Earnings per share, Operating cost, revenue growth, Return on interest, and Return on capital. Implementing the objectives and performance measuring tools into the company’s daily routing, Body by Design Health and Fitness will be able to achieve the company’s goals that were defined in the mission and vision statement.
Customer Value Perspective
“To achieve our mission, how must we appear to our customers?” (BSI 2009, ¶5). Body by Design Health and Fitness is a new company to the Dallas downtown area and the customers will be the ones determining the success of the company. Customer satisfaction, increase in market share, the delivery of products and services that are consistent with value and quality to everybody including special populations, increase in public awareness and visibility in the community in a way that will engage and expand community support and improve the fitness centers brand image are the strategic objective involved with customers.
The best way for Body by Design Health and Fitness to achieve these objectives is to develop a set of performance tools that will measure the success in achieving these goals. Body by Design Health and Fitness will need to monitor customer satisfaction at all times by continuous surveys, promotions, increase in market share, store brand awareness, and competitive strategies to offer reasonable membership fees to contend against our competitors. Poor company and employee performance reviews from customers can lead Body by Design Health and Fitness being unsuccessful. This is why it is important for Body by Design Health and Fitness to know how customers view the facility and if that view is the same one that is defined in the mission and vision statement. A way to initiate more customers is to expand into other cities and offer the customer a rewards program. These activities are designed to achieve customer satisfaction.
Process/Internal Operations Perspective
“To satisfy our customers, at which processes must we excel” (BSI 2009, ¶5). Body by Design Health and Fitness strategic goals should be developed in a way that will internally meet the customer’s needs and satisfaction. All strategic goals should be defined with the purpose of keeping the company running smoothly and in a way that will help to achieve the promises being made in the mission and vision statement. The strategic goals for Body by Design Health and Fitness are to improve business processes and efficiencies, acquire additional services and business options, and improve marketing of facility and the marketing of the products and services.
These strategic objectives should be monitored on a daily basis to ensure an overall satisfactory outcome for Body by Design Health and Fitness. The best way for Body by Design Health and Fitness to ensure this is to create a set of performance tools that will measure the objective to ensure that they are being achieved. The business needs to decrease the number of duplicate products or services being offered, monitor the revenue being earned from new programs, orders are being received on time, increase in products and services being purchased by local suppliers, and ensure employee and customer satisfaction through constant surveys. Body by Design Health and Fitness should initiate a frequent purchasing program and a new marketing campaign that will assist in generating new customers.
Learning and Growth Perspective
“To achieve our mission, how must our organization learn and improve” (BSI 2009, ¶5). This perspective can be considered the foundation upon how the balance scorecard is built and it will include employee training and the company’s cultural attitude and how these two are related to the company’s self-improvement. This area of the balance scorecard is to focus the company on how they can facilitate further improvements while addressing technological changes. The strategic objectives should focus on maintaining experienced employees who constantly develop their skills and information from constant training.
The strategic objectives for Body by Design Health and Fitness will be to recruit constantly and retain a highly skilled workforce, increase employee satisfaction and retention, improve organizational trust & teamwork, and improve use of technology in the company. The performance measures that Body by Design Health and Fitness will need to implement are ensuring proper of products and services, constant training and retraining, customer satisfaction, and to decrease employee turnover rate. The company also needs to initiate a staffing optimization analysis, online billing upgrade that will allow companies to purchase services and products and pay later, and service training seminars and workshops outside the building.
Body by Design Health and Fitness has been able to develop a mission and vision statement that will help the company be successful and grow in the future. The best way for Body by Design Health and Fitness to do this is to define a strategy that can easily be communicated to management. This strategy needs to incorporate the business views, goals, and objectives. The measurements that the facility needs to use to achieve the views, goals and objectives of the company need to be defined. The best way for the facility to do the above is to develop a balance scorecard. The balance scorecard is a very vital component of any business and no two balance scorecards can be the same. When creating a balance scorecard one has to keep in mind that what works for one company will not always be a good fit for another company.
The four perspectives defined herein are: Financial, Learning and Growth, Customer, and Internal Process. With each perspective, Body by Design Health and Fitness has defined at least three strategic objectives; targets, and initiatives performance measures. The company will need to incorporate all the performance measures on a daily basis into the faciltity to be able to fully achieve the goal of 100% customer satisfaction.
University/College: University of California
Type of paper: Thesis/Dissertation Chapter
Date: 9 January 2017
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