Winning
Strategies
TEAM A2
CONTENTS

Theory & Approach of Balanced
Scorecard (BSC)

Waveriders’ Vision

Linking BSC with Strategy No 3

Advantages & Disadvantages of
BSC
BALANCED SCORECARD
THEORY & APPROACH
What is BSC?
The balanced scorecard is a strategic
planning and management system that
is used extensively in business and
industry, government, and nonprofit
organizations worldwide to align
business activities to the vision and
strategy of the organization, improve
internal and external communications,
and monitor organization performance
against strategic goals.
THEORY & APPROACHES?

Balanced Scorecard helps the
organization to manage and
view its activities by focusing
on four different but equally
important perspectives.
 The
Financial Perspective
 The Customer Perspective
 The Business Process
Perspective
 The Learning and Growth
Perspective (Roberts, 2006)
WAVERIDERS’ VISION
(2013 – 2017)
To be the first choice for clients where
luxury meets affordability and set high
level standards in the military marine
industry.
Internal Business Perspective
Goal
Customer Perspective
Measure
Target
Cycle Time
30 min
Percent of products
defective at final test
2%
Improve Safety
Specifications
Percent of audits
conducted on schedule
97%
Reorganize the Sales
Team
Number of Sales Orders
320
Number of staff
reduced annually
1
Number of overtime
request forms
40
Percent of financial
reports delivered on
schedule
96%
Goal
Efficiency in Manufacturing
Reorganize & Reduce HR
Team
Install New Finance System
to Reduce Finance
Workload
Finance Perspective
Goal
Increase Profitability
Measure
ROCE
Move C&B Mgr into the Finance
Dept.
Number of
Payroll errors
Increase efficiency of using the
new technology
ROA
Install New Finance System
Target
0
Estimated Cost
£25K
(2013)
Identify Euro promotional
campaigns
Cost of
Marketing
£250k
(2013)
Continue to Invest in New
Technology
Cost of
Investing
£150k
(2017)
Measure
Target
Customer Satisfaction
Number of follow up
calls
700
Improve Safety
Specifications
Number of customer
complaints on Safety
Issues
5
Cost of Marketing
Campaigns
£50k
Offer Discounts
Number of Discounts
per annum
4
Improve Product
Specifications
Percent of
Performance against
standards (European
Standards)
98%
Become the price leader
Cost per unit
benchmarked against
competitors
Euros Promotional
Campaigns
To be the first
choice for clients
where luxury
meets
affordability and
set high level
standards in the
military marine
industry
Learning & Growth Perspective
Goal
Measure
Target
Continue to Invest in
New Technology
Number
Of new developments in
the product
3
Identify New
Distributor who could
take on the European
Sales
Percent of Market Share
30%
Gross Margin (%)
15%
Percent of Customers
who can track order
status electronically
20%
Install New Finance
System for Euros
STRATEGY 3 MAP - WAVERIDERS
BALANCED SCORECARD
TOTAL
19
100%
100%
Learning & Growth Perspective
Goal
Measure
Measure
Unit
Actual
Target
Implement New
Finance System to
Decrease Finance
Workload
Percent of financial
reports delivered on
schedule
(per week)
%
61%
96%
(2017)
Recruit and Retain
Qualified Sales Rep
Turnover of Sales
Personnel
%
13%
3%
(2017)
Internal Business Perspective
Goal
Measure
Measure
Unit
Actual
Target
Improve Efficiency in
Manufacturing
Percent of product parts
defective at final test
%
10%
1%
(2017)
Improve Safety Specifications
Percent of audits
conducted on schedule
%
70%
97% (2017)
Reorganize the Sales Team
Number of Sales Orders
Score
260
320
(2017)
Reduce HR Team
Number of staff reduced
annually
Score
4 (3 Admins + 1
T&D Mgr )
1
(per annum)
starting from
2014
Move C&B Mgr into the Finance
Dept.
Number of Payroll errors
(Per Annum)
Score
10
1
(2017)
Percent of Market Share
%
15% (5% leisure
market + 10%
Marine)
30% (10%
+20%) / (2017)
Gross Margin (%)
%
7.75%
15%
(2017)
Number
Of new developments in
the product
Score
1
3
(per annum)
Identify New Distributor who
could take on the European
Sales
Increase Innovation
Interventions
Customer Perspective
Goal
Measure
Measure
Unit
Actual
Target
Become the price leader in
the Euro Market
Cost per unit benchmarked
against competitors
£
£3500
(sea
spray) &
£14900
(sea
horse)
Increase price by
£87.5 (sea spray) & £372.5
(sea horse)
(increase of 2.5% by 2017)
Improve Relationships with
Customers
Percent of Customers who
can track order status
electronically
%
0
20%
(Per Annum)
Percent of New Euro
Customers acquisitioned
through the campaigns
%
-
15%
(2017)
Number of customer
complaints on Safety Issues
(per month)
Score
35
5
(2013)
Percent of Performance
against standards (Marine
European Standards)
%
89%
98%
(2017)
Number of follow up calls
(per week)
Score
400
700
Identify Successful Euro
Promotional Campaigns
Provide Best Value of
Products to our Customers
Provide High Quality Service
to our Customers
Finance Perspective
Goal
Increase Profitability
Increase the efficiency of using
new technology
Measure
Measure
Unit
Actual
Target
ROCE
%
9..05%
13%
(2017)
ROA
%
8.3%
11.93%
(2017)
Balanced Scorecard
Objectives
Increase Profitability
Increase the efficiency of using new technology
Become the price leader in the Euro Market
Improve Relationships with Customers
Action Plan
Measurement
Target
Initiative
Budget
ROCE
13%
-
-
ROA
11.93%
-
-
Increase the Price
-
Cost per unit benchmarked against competitors
Percent of Customers who can track order status electronically
20%
Install New Finance
System
£12,5k
Percent of New Euro Customers acquisitioned through the
campaigns
15%
Increase Marketing
Spend
£250k
Number of customer complaints on Safety Issues
(per month)
5
-
-
Percent of Performance against standards (Marine European
Standards)
98%
Provide High Quality Service to our Customers
Number of follow up calls
(per week)
700
-
-
Reorganize the Sales Team
Number of Sales Orders
320
-
-
Number of staff reduced annually
1
Applying Redundancy
£77k
Move C&B Mgr into the Finance Dept.
Number of Payroll errors
(Per Annum)
1
-
-
Identify New Distributor who could take on the
European Sales
Percent of Market Share
30%
-
-
Gross Margin (%)
15%
Number
Of new developments in the product
3
1%
Continue to Invest in
New Technology
£150k
Percent of product parts defective at final test
Percent of audits conducted on schedule
97%
Percent of financial reports delivered on schedule
(per week)
61%
Install New Finance
System
£12,5k
Turnover of Sales Personnel
13%
Take on new 3 Sales
Rep
£96k
TOTAL BUDGET
£598k
Identify Successful Euro Promotional Campaigns
Provide Best Value of Products to Our
Customers
Reduce HR Team
Increase Innovation Interventions
Improve Efficiency in Manufacturing
Improve Safety Specifications
Implement New Finance System to decrease
finance workload
Recruit and Retain Qualified Sales Rep
ADVANTAGES & DISADVANTAGES OF BSC
Advantages
• Gives a clear picture of the future and
a path to for getting there.
• Gives a balance view of Company’s
performance
• Gives a balance between short –
term and long – term objectives.
• Identify cause and effect relationships
between the different elements of an
organization.
• Converting intangible assets into
tangible outcomes.
Disadvantages
• The cause and effect relationships
are problematic.
• Not easy to convert into a
measurement model.
• It focuses primarily on top - down
performance measurement.
THANK YOU
Q&A
REFERENCES




Balanced Scorecard Institute. (1998). Balanced Scorecard
Basics. From
http://www.balancedscorecard.org/BSCResources/AbouttheB
alancedScorecard/tabid/55/Default.aspx
Kanji, G. (2002) Measuring Business Excellence. London:
Routledge.
Kaplan, S. , Norton, D. (1996) The Balanced Scorecard:
Translating Strategy into Action. Massachusetts: Harvard
Business School Press.
Kaplan, S. , Norton, D. (2004) Strategy Maps: Converting
Intangible Assets into Tangible Outcomes. Massachusetts:
Harvard Business School Press.