...Designing a Balanced Scorecard for a pharmaceutical company Chadwick, Inc.: The Balanced Scorecard (Abridged)14 Company Background Chadwick, Inc., was a diversified producer of personal consumer products and pharmaceuticals. The Norwalk Division of Chadwick developed, manufactured, and sold ethical drugs for human and animal use. It was one of five or six sizable companies competing in these markets and, while it did not dominate the industry, the company was considered well managed and was respected for the high quality of its products. Norwalk did not compete by supplying a full range of products. It specialized in several niches and attempted to leverage its product line by continually searching for new applications for existing compounds. Norwalk sold its products through several key distributors who supplied local markets, such as retail stores, hospitals and health service organizations, and veterinary practices. Norwalk depended on its excellent relations with the distributors who served to promote Norwalk’s products to end users and also received feedback from the end users about new products desired by their customers. Chadwick knew that its long-term success depended on how much money distributors could make by promoting and selling Norwalk’s products. If the profit from selling Norwalk products was high, then these products were promoted heavily by the distributors and Norwalk received extensive communication back about future customer needs. Norwalk had historically...
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...| OTAGO MUSEUM | Comprehensive Balance Scorecard | | | | Hoi Yan Cheng 9552508 Yu Liu 9552762 BBUS 425 Advanced Management Accounting Instructor: Tony Bell Thompson Rivers University Date: Feb 1st, 2011 MEMORANDUM DATE: January 30, 2011 TO: Shimrath Paul, CEO of OTAGO MUSEUM FROM: Chris Farry, CFO of OTAGO MUSEUM ------------------------------------------------- RE: Analysis of Comprehensive Balance Scorecard for Otago Museum It is a great pleasure to have the opportunity to work with you. According to your request, I have completed the design of the comprehensive Balance Scorecard (BSC) for our museum. The newly designed comprehensive Balance Scorecard (BSC) is divided into four sectors: Financial, Learning and Growth, Internal Process and Community Perspective. Financial is concerned with supporting further programs and operations under learning and growth. A better internal process will be developed in a well developed learning and growth environment. We are working toward our prime mission “To be an inspirational museum of which the people of Otago and New Zealand are proud.” Community innovation and engagement in the community perspective are our final goals with this Balance Scorecard (BSC) (See Appendix 3 and 4). Financial Objective Understanding that the financial situation is the foundation to support the ongoing program and contracture operation, and our first priority is to strengthen our financial circumstances...
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...MEMORANDUM TO: Richard Gelfond and Bradley Wechsler ------------------------------------------------- RE: Strategic Direction for the Future of IMAX Recommendation It is recommended that IMAX focus on the growing edutainment industry while simultaneously pursuing aggressive expansion into multiplexes. The balanced scorecard in Exhibit A reveals financial crisis due to limited customer retention and acquisition. This is a direct consequence of IMAX’s niche positioning. Although this positioning is the source of the firm’s trusted brand image, it also restricts growth opportunities because of the small market size. By producing films with educational and entertaining content, IMAX can avoid brand dilution associated with Hollywood films and leverage its main source of competitive advantage (see Exhibit B). Furthermore, expansion into new venues will increase the firm’s potential market to sustain future growth. The recommended strategy is the most desirable alternative in Exhibit C. Support for Strategic Decisions Exhibit D shows IMAX’s core purpose as creating a unique movie-going experience. This purpose is preserved in the recommended strategy since it aims to bring large-format screens and enhanced visual and audio systems to multiplexes. Such an experience is certainly independent of the film being shown. However, in order to achieve the higher margins built into IMAXs business strategy in Exhibit E, IMAX must concentrate on distribution of their own films rather...
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...Benchmarking in HR/ HR Balanced Scorecard /SEM SAP AG HCM EMEA - public - Agenda Benchmarking Balanced Scorecard © SAP AG 2002, The HR Balanced Scorecard, Dr. Martina Schuh, Page 2 Agenda Benchmarking Balanced Scorecard © SAP AG 2002, The HR Balanced Scorecard, Dr. Martina Schuh, Page 3 Benchmarking – Definition Benchmarking is the comparison of similar processes across organizations, companies and industries to identify best practices and develop improvement plans and actions (Score Research) [ Learn from the best by enterprise comparison!!! ] [ Learn from each other by enterprise comparison!!! ] © SAP AG 2002, The HR Balanced Scorecard, Dr. Martina Schuh, Page 4 Integration with Benchmark Provider: Data Flow Payroll Benchmark Provider SEM Measure Catalog (HR Measures) Administration 0100010101 1011001010 1101001010 1010100011 1010100101 1011010101 1001010101 XML Time Management HR Benchmarks Business Content Benchmarks from Provider 0100010101 1011001010 1101001010 1010100011 1010100101 1011010101 1001010101 XML Developments BW Rel. 3.0 HR InfoCube for external Benchmarking © SAP AG 2002, The HR Balanced Scorecard, Dr. Martina Schuh, Page 5 Measures: Data Flow SAP SEM Objective/Measure Actual Plan B.mark Develop key skills Strategic skills available 17 26 25,5 Employee retention 73 70 68 Improve corporate culture Employee satisfaction 9,1 8,5 9,0 Measure Builder Measure definition Balanced Scorecard MEASURES are defined from a purely business point...
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...Step One: Assessment Step One of the scorecard building process starts with an assessment of the organization’s Mission and Vision, challenges (pains), enablers, and values. Step One also includes preparing a change management plan for the organization, and conducting a focused communications workshop to identify key messages, media outlets, timing, and messengers.Step Two: Strategy In Step Two, elements of the organization’s strategy, including Strategic Results, Strategic Themes, and Perspectives, are developed by workshop participants to focus attention on customer needs and the organization’s value proposition.Step Three: Objectives In Step Three, the strategic elements developed in Steps One and Two are decomposed into Strategic Objectives, which are the basic building blocks of strategy and define the organization's strategic intent. Objectives are first initiated and categorized on the Strategic Theme level, categorized by Perspective, linked in cause-effect linkages (Strategy Maps) for each Strategic Theme, and then later merged together to produce one set of Strategic Objectives for the entire organization. | | | Step Four: Strategy Map In Step Four, the cause and effect linkages between the enterprise-wide Strategic Objectives are formalized in an enterprise-wide Strategy Map. The previously constructed theme Strategy Maps are merged into an overall enterprise-wide Strategy Map that shows how the organization creates value for its customers and stakeholders...
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...Balanced Scorecard The BSC is a planning & management system which can be widely applied to organizations and companies regardless of size or type of business. The technique, extensively used in business and industry, government, and non-profit organizations worldwide, provides a method of aligning business activities to the vision & strategy of the organization, integrating internal & external communications, & keeping a watch on organization performance against strategic goals. It was developed by Robert Kaplan and David Norton of Harvard University in 1990. The line of the balanced scorecard runs deep, and include the revolutionary and path breaking work of General Electric on performance measurement coverage in the late 1950’s and the work of French engineers in the early part of the 20th century in France. Due to the fact that balanced scorecard term is a generic, it is interpreted differently by different people, and in practice, there are wide variations in both understanding and implementation. To some, the balanced scorecard is just a simple control panel indicating performance measures, while to others it is a inclusive planning and management system encompassing the whole organization and planned to focus efforts on business strategy and more significantly on performance and results. The balanced scorecard has steadily developed from its early use as a simple performance measurement framework for non-financial performance measures to a full strategic planning and...
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...WHAT IS A BALANCED SCORECARD? According to Robert Kaplan and David Norton, the founders of the Balanced Scorecard, "The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation. (4)" In essence, the Balanced Scorecard is a performance management system used in multitude of organizations throughout the world. It is used to develop an organization’s goals and mission that will enhance the success it has with its customers and employees. HISTORY Although first developed in the early 1990’s by Robert Kaplan and David Norton of the Harvard Business School and coined “Balanced Scorecard” in the early 1990’s, Kaplan and Norton’s method originally stemmed from the pioneering work of General Electric on performance measurement reporting in the 1950’s and the dashboard performance measures from French process engineers in the early 20th century (4) The idea behind this performance measurement tool developed from the fact that traditional performance measurement systems, mostly financial performance indicators, were insufficient in...
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...CASE MEMO VERIZON COMMUNICATIONS INC: IMPLEMENTING A BALANCED SCORECARD By : Pallabi Roy (35) Pranjal Yadav (37) Rudra Prasad Banerjee (43) Sherin S Mathews (49) Sohini Banerjee (52) Srijan Sinha (53) Supratim Datta (55) By : Pallabi Roy (35) Pranjal Yadav (37) Rudra Prasad Banerjee (43) Sherin S Mathews (49) Sohini Banerjee (52) Srijan Sinha (53) Supratim Datta (55) CASE SUMMARY Company profile: Verizon is a global leader in delivering innovation in communications, information and entertainment. It has close to 90.0 million customers. 130 million customer connections (wireless, wireline, broadband and TV) are served every day by them. It has its headquarters in New York City and Operations Center in Basking Ridge, N.J. Its key products and services are: * Wireline voice and data services * Wireless services * Publishing of print and electronic directories Company Evolution: Originally, before the passage of the Act, Bell Atlantic, NYNEX, and other “baby bell” companies were formed. Then in 1996, Congress passed the Telecommunications Act which aimed at deregulation in the telecommunications industry. The total value of mergers and acquisitions had increased considerably after the passage of the act. Soon after this, Bell Atlantic / GTE merger was announced. The entity thus created was named as Verizon. Verizon had more than $22 billion in cash flow. * It had $6 billion revenues and 260,000 employees * It was the largest...
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...ISSN 1940-204X COORS BALANCED SCORECARD: A DECADE OF EXPERIENCE Hugh Grove University of Denver Tom Cook University of Denver Ken Richter Coors Brewing Company IntroductIon By the end of 1997, Coors had finished the implementation of a three-year Computer Integrated Logistics (CIL) project to improve its supply chain management. Coors defined its supply chain as every activity involved in moving production from the supplier’s supplier to the customer’s customer. (Since by Federal law, Coors cannot sell directly to consumers, Coors customers are its distributors whose customers are retailers whose customers are consumers.) Coors supply chain included the following processes: purchasing, research and development, engineering, brewing, conditioning, fermenting, packaging, warehouse, logistics, and transportation. This CIL project was a cross-functional initiative to reengineer the business processes by which Coors logistics or supply chain was managed. This reengineering project improved supply chain processes and applied information technology to provide timely and accurate information to those involved in supply chain management. The project objective was to increase company profitability by reducing cycle times and operating costs and increasing customer (distributor) satisfaction. The software vendor used for this project was the German company, Systems Applications & Products (SAP), 1 that provided the financial and materials planning software modules. The SAP planning...
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...CHAPTER 10 1. What is the difference between a “dashboard” and a “scorecard”? Why is it important that managers know the difference between the two? What can they learn from each? A dashboard is a container for various types of reports, including scorecards. It might consist of one or more pages, and it might have more than one module on each page. The modules are called Web Parts. A typical dashboard might contain a scorecard, an analytic report, and an analytic chart, but many variations are possible. Some dashboards provide users with a high level of interactivity, and others display static images. The degree and kind of interactivity depend on the program that is used to create the dashboard. Each Web Part maintains a connection to its data source. The Web Parts can function independently of one another, or they can be linked together, so that what you click in one determines what you can see in the others. Together, the reports provide a clear picture of current organization performance. http://office.microsoft.com/en-us/sharepoint-server-help/what-is-the-difference-between-a-dashboard-and-a-scorecard-HA101772797.aspx A scorecard measures performance against goals. Typically, a scorecard displays graphic indicators that visually convey the overall success or failure of an organization in its efforts to achieve a particular goal. The scorecard is based on a collection of key performance indicators (KPIs), each of which represents an aspect of organizational performance...
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...named The Balanced Scorecard-Measures That Drive Performance, then the underlying assumptions and paradigm of this research will be discussed and identified. After that, some criticize will be raised from the view of other paradigms, the difference of underlying assumptions will be explained in the end. Paper of Balanced Scorecard In 1992, Robert S. Kaplan and David P. Norton published the paper named The Balanced Scorecard - Measures That Drive Performance, this paper is based on a year-long research project with 12 companies at the leading edge of performance measurement. It changed the traditional performance measurement (which only concerns the financial performance of the company) by introducing four aspects of performance : financial perspective; customer perspective; internal process perspective and learning and innovation perspective. The paper argues that managers could have a better understanding and control of their companies by answering the basic questions related to these perspectives. For example: How do customers see us(customer perspective); What must we excel at(internal perspective); Can we continue to improve and create value(innoviation and learning perspective); How do we look to shareholders(financial perspective). The paper also demonstrated some examples of how to build the balanced scorecard for the company and developed the performance measurement system from balanced scorecard. This paper could be considered as the fundamental of the balanced scorecard...
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...IV. How can you utilize the scorecard approach/es in allocating operational risk capital? Operational risk is hard to quantify because it is the risk resulting to personnel or organizational error, technological inadequacies or failure in processes which also include external factors. Operational risk scorecards show the operational risk profile of a company through the use of scores. Through the scorecard approach, the bank will use scorecards to modify the amounts of the initial level of operational risk capital determined at the bank’s business line. 1. The bank can apply expert knowledge to estimate distribution functions 2. Reflect the Level of operational risk: adjustment on the result of the scorecard 3. Identify the Source of Operational risk: This will help in specifically what part of the product or business lines and which units causes operational risk 4. Present causes of operational risk: management can take actions on what the operational scorecard shows which will help mitigate operational risk 5. Reflect on quality of operations: the operational risk level of a bank depends on the quality level. Changes on operational level can help reduce current risk by improving quality of operations. 6. Supplement information: information is really vital and it will help for the bank to pinpoint which contributes to its current operational risk. 7. Adjust on the current level of operational risk: this will allow for the management to set...
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...this project will be kept confidential. You will then develop a SWOT analysis to clarify and aid in the identification of the organization's / segment's CSFs. The written project requires you to prepare and submit the following in order: 1. Brief description of the organization/segment–1 paragraph. 2. SWOT analysis in chart form–Four categories - Strengths, Weaknesses, Opportunities, Threats - each item should be clearly and concisely stated. 3. Balanced Scorecard in chart form. Clearly and concisely list CSFs in each of the four categories identified in the text. For each CSF indicate in a separate column explain how the measurement of the CSF will transpire. 4. A discussion of the CSFs chosen for the organization/segment–why were these particular factors selected? Why are they important in accessing the success of the company? (2–3 pages) 5. An evaluation of the organization/segment to determine if it is achieving each of the CSFs. Analyze each CSF and use data from the measures indicated in the balanced scorecard as support for the conclusions. (2–3 pages) Some additional guidelines are as follows: 1. The paper should be a minimum of 5 pages, excluding the two charts. 2. The paper should be written in APA format. 3. The use of first and second person should be avoided (e.g. I, we, you, etc.). 4. You should use a minimum of your textbooks and two additional scholarly sources. Wikipedia, Investopedia, and the like are not considered...
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...To: Board of Directors of Caribbean Brewers, Inc. From: Advisor, Caribbean Brewers, Inc. Subject: Report on the Performance Measurement System for Cost and Quality Control Date: April 17, 2014 Performance Measurement Background Since Gera International purchased a 75 percent share of the brewery, the performance measurement system has changed immensely. Presently, the production personnel can earn a bonus if production costs do not exceed 43% of sales. In the past, the bonus was based on a combination of average total production costs and quality control, which has since been eliminated. This change in performance measurement has also affected JJ’s benefits, eliminating his annual dividend, and decreasing his ownership in the company from 25% to 8%. Cost Control JJ, the production manager, is extremely displeased with the new performance measurement system for a variety of reasons. Regarding costs, the production personnel’s bonus is based on many factors which are out of their control. The production facilities were expanded in 2008 in order to double production capacity. Since the expansion, the plant began producing Gera beer as well. As a deposit cannot be collected on exported Gera beer bottles, all bottling costs are expensed and charged solely to Caribbean Brewers Inc., resulting in a cost increase of over $6.1 million in 2009. Depreciation is also included in determining total production costs as a percentage of sales for bonus purposes. As a result...
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...Bringing the Balanced Scorecard to Life: The Microsoft Balanced Scorecard Framework White Paper By: Charles Bloomfield Insightformation, Inc. Published: May 2002 For the latest information, please see http://www.microsoft.com/business/bi/ Abstract This paper describes the Microsoft® approach to developing and implementing a Balanced Scorecard for enterprise performance management. It presents basic information on the Balanced Scorecard performance management methodology, and identifies key business issues that must be addressed in developing and deploying a balanced scorecard. The paper then presents the Microsoft Balanced Scorecard Framework (BSCF)—a comprehensive set of techniques, tools, and best practices to speed scorecard implementation using toolsets with which organizations are familiar. An extensive body of research and literature describing the Balanced Scorecard exists. That body of knowledge is constantly being expanded by The Balanced Scorecard Collaborative, Balanced Scorecard Institute, various consulting organizations, software companies, and client organizations. This paper cannot comprehensively cover such a complex topic or reflect accurately many of the nuances of scorecard development and implementation. Instead, it presents a basic conceptual overview of the Balanced Scorecard. Interested readers are encouraged to use the bibliography presented at the end of this paper as a guide to more detailed information. ...
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