Dallas will enter into long term contracts with

This preview shows page 13 - 28 out of 57 pages.

Dallas will enter into long-term contracts with customers specifying quantities and prices. The customer relationship manager will work with the customer and manufacturing to specify delivery schedules one month in advance.
13 - 14 Reengineering Example The schedule of customer orders will be sent electronically to manufacturing. Completed items will be shipped directly from the manufacturing plant to customer sites. Each shipment will automatically trigger an invoice to be sent electronically to the customer.
13 - 15 Present the four perspectives of the balanced scorecard.
13 - 16 Perspectives of Performance 1. Financial 2. Customer 3. Internal business process 4. Learning and growth
13 - 17 Financial Perspective Objective: Increase shareholder value Measures: Increase in operating income
13 - 18 Financial Perspective Initiatives: Target Performance Actual Performance Manage costs and unused capacity Build strong customer relationships $2,000,000 $3,000,000 6% Build strong customer relationships $2,100,000 $3,420,000 6.48%
13 - 19 Customer Perspective Objectives: Increase market share Measures: Market share in communication networks segment Customer satisfaction survey Increase customer satisfaction
13 - 20 Customer Perspective Initiatives: Target Performance Actual Performance Identify future needs of customer Identify new target customer segments 6% 7 90% give top two ratings Increase customer focus of sales organization 7% 8 87% give top two ratings
13 - 21 Internal Business Process Perspective Objectives: Improve manufacturing quality and productivity Measures: Yield On-time delivery Meet specified delivery dates
13 - 22 Internal Business Process Perspective Initiatives: Target Performance Actual Performance Identify problems and improve quality Reengineer order delivery process 78% 92% 79.3% 90%
13 - 23 Learning and Growth Perspective Objectives: Align employee and organization goals Measures: Employee satisfaction survey Improvements in process controls Improve manufacturing processes
13 - 24 Learning and Growth Perspective Initiatives: Target Performance Actual Performance Employee participation and suggestion program to build teamwork Organize R&D/ manufacturing teams to modify processes 80% of employees give top two ratings 5 88% of employees give top two ratings 5
13 - 25 Aligning the Balanced Scorecard to Strategy Different strategies call for different scorecards. What are some of the financial perspective measures? “Net” Operating income “Profitable” Revenue growth Cost reduction Return on investment CASH FLOW
13 - 26 Aligning the Balanced Scorecard to Strategy What are some of the customer perspective measures? Market share Customer satisfaction Customer retention percentage Time taken to fulfill customers requests Line item fill rate
13 - 27 Aligning the Balanced Scorecard to Strategy What are some of the internal business perspective measures?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture