Focus on Results
Balanced Scorecards
Linda Bounds
Vice President – Financial Services
Focus on Results
The Question
What approach do you use to achieve and
maintain excellent results? -- Results that create
loyalty customers and value for your employees,
vendors/partners and shareholders.
Focus on Results – Balanced Scorecard
• Learning Objectives
– Approach to Focus on Results
• Identify key stakeholders and requirements
• Alignment of requirements and strategies
• Systematic review through Balanced Scorecard
– Approach to Creating Value
• Process improvement actions
• Innovation
– Key to Achievement
• Leadership System
• Results - Sustainability
Focus on Results – Creating Value
Balanced Scorecard
A Balanced Scorecard is simply:
•
•
•
•
•
Your key stakeholders
Their key requirements
Indicators of your performance
Displays your goals
All of your important results on one
page
Key Elements - Performance Measurement System
Set the Direction
• Align with Key Stakeholder Requirements
Key Elements - Performance Measurement System
Set the Direction
• Linked to Organizational Goals
Key Elements - Performance Measurement System
Set the Direction
• Align with SWOTS, Core Competencies and Company Strategies
MidwayUSA Company SWOT Analysis
Strengths - Allow us to Deliver Exceptional Results
1. Business Administration
2. Strategic Planning (Expertise, Speed and Agility)
3. Customer Focus/Dedication to Customer Satisfaction
4. Product Selection (Just About Everything Concept)
5.
6.
7.
8.
Reviewed 1/26/2012, Revised 1/26/2012
Weaknesses
1. Process Management
2. Workforce Training and Development
3. Capacity/Capability Planning
Recruiting High-Performing Employees who Share Values
4.
w/Passion for Industry
5. Website Management (Features and Speed)
6. Customer Complaint Management
7. Project Management
8. Business Intelligence (Information Management and Analysis)
New Product Acquisition
Promotional Business Model
Inventory Management
Order Fulfillment Capabilities (Nitro Express)
Larry Positioned as Face and Voice of Midway Representing
9.
9. Market Research, Analysis and Benchmarking
our Brand
10. Vendor Relationship Management
10. Succession Planning
11. Key Conservation Group Strategic Alliances
11. Long-Term Planning
12. Culture of Continuous Improvement and Innovation
Loyal Employees with a High Level of Industry Knowledge and
13.
Passion
14. High Performing Employees
15. Internal Information Systems Capabilities
16. In-House Video Production Capability (GunTec)
Opportunities - Increases Satisfaction of our Stakeholders
Threats
1. Entering New Markets and Growing Market Share
1. MAP Programs Limiting Promotional Opportunities
2. Becoming an Internet-Only Retailer
2. Competition from Websites Doing Fulfillment Only
3. Internet Advertising and Marketing
3. Increasing/Changing or Unknown Regulations on Products
4. Social Marketing and Monitoring
4. Business Downturn due to Market Conditions
5. Sourcing MidwayUSA Branded Products
5. Vendors Restricting Exports
Knowledge Content & Product Information Creation,
6.
6. Computer Viruses, Malware, Phishing and Hacking
Management and Distribution
7. Leveraging Potterfield Donations to Key Conservation Groups
8.
9.
10.
11.
12.
13.
14.
Customer Relationship Management
User-Generated Web Content and Community Features
International Business Model Expansion
Mobile Device Capabilities
Expanding Repack/Bulk Component Business
Negotiating Improved Freight Programs
Improving Customer Satisfaction by Revising PH&I
15. Employee Satisfaction and Engagement (Great Place to Work)
16. Risk Management (Legal & Regulatory Compliance)
7. Legislation Affecting the Shooting/Hunting Industry
8. Limited Supply of Qualified IT and Web Professionals
9. Internet Sales Tax
10. Non-Endemic Companies Competing in our Industry (Amazon)
Key Elements - Performance Measurement System
Establish the Measures
• Align with performance and process areas
Key Elements – Performance Measurement System
- Link Goals and Requirements to Department and
Individual Scorecards
Company
Goals
Company
Requirements
Department
Scorecard
Individual
Scorecard
Product
Availability
In-stock Rate
• In-stock rate
by product line
Customer
Satisfaction
Accurate,
Intact
Shipments
Easy to do
business with
Shipping
package quality
• Package
quality rate
Fast Delivery
• Picking error
rate
Abandoned
Calls
• Ship QC
invoices per
hour
Key Elements - Performance Measurement System
Establish the Measures
• Integrate stakeholder requirement, process, measure and value
Key Elements - Performance Measurement System
Balanced Scorecards
- Measures provide depth and breadth for fact-based decision making
MidwayUSA CEO/President Scorecard
Company Key Measures*
Customer Satisfaction - Overall1
Employee Satisfaction and Engagement
Vendor Satisfaction
Gross Sales - Overall
Net Income % of Net Sales
Timely Payment of Earnings
Inventory Turns (Paid)
% of Customer Orders with NRA Round-Up
Receive Malcolm Baldrige National Quality Award
Legal, Ethical and Regulatory Compliance
Strategic Plan Execution
Continuous Improvement in Productivity
$
2011 YTD
Actual
2011 YTD
Goal
April/Q2
Actual
93.0%
78%
94%
92.0%
84%
92%
$92,000
9.9%
100%
10.0
62%
100%
100%
17%
100%
93.0%
78%
94%
100,000
10.0%
100%
10.6
64%
100%
92%
17%
100%
$
50,000
10.0%
100%
10.5
64%
100%
N/A
17%
99%
April/Q2 Goal 1
92.6%
84%
92%
$50,000
9.9%
100%
10.0
62%
100%
100%
17%
100%
2
3
4 Benchmark source
N/A
N/A
N/A
Hewitt & NBRI
N/A
N/A
N/A
Cabela's, Bass Pro, Brownells
Crutchfield, Orvis
Cabela's (rate of growth)
Cabela's
N/A
Cabela's
2
N/A
N/A
N/A
N/A
N/A N/A
* Not actual numbers. Numbers are for illustration purposes only.
N/A
N/A
Customer Satisfaction
* Not actual numbers. Numbers are for illustration purposes only.
Customer Satisfaction
Detail
2011
7.1 Customer Satisfaction Detail
Measure
7.1.3 Fast shipping and delivery
April/Q2
2009
94.0%
2010
94.0%
Actual
94%
Goal
93%
Actual
94.0%
Goal
95%
7.1.4.1 Customer Satisfaction Survey Question #13
94.0%
94.0%
94.0%
93%
94.0%
95%
7.1.4.2 Same Day Shipping (all orders)
98.9%
95.0%
88.4%
99.0%
92.0%
99.0%
7.1.4.3 Same Day Shipping (Pick-up orders)
Coming
Coming
Coming
Coming
Coming
Coming
7.1.8 Friendly, courteous, respectful, ethical service
93.0%
94.0%
93.0%
92.6%
93.0%
92.5%
7.1.8.1 Customer Satisfaction Survey Question #1
94.0%
94.0%
94.0%
93%
94.0%
93%
7.1.8.2 Customer Satisfaction Survey Question #15
92.0%
93.0%
92.0%
92%
92.0%
92%
N/A
92.0%
93.8%
92.0%
94.4%
92.0%
7.1.8.4 Time Service Factor
69.3%
75.2%
83.2%
75-85%
84.1%
75-85%
7.1.8.5 Abandoned Calls
2.6%
2.5%
2.0%
3.0%
1.4%
3.0%
7.1.8.3 After Call CSR survey
* Not actual numbers.
Numbers are for illustration
purposes only.
Logistics Department
Scorecard
LO Process Scorecard
History
Section Process Measures
2009
EOY
2010
EOY
Goal
April
Actual
April
Goal
Actual
Stocking
Cost per Invoice - Stocking
Cost per Line - Stocking
Dock to Stock: Total Cycle Time Average
$0.25
$1.31
n/a
$0.22
$0.90
12.8
$0.18
$0.92
16.1
$0.25
$1.00
17.0
$0.27
$1.45
29.5
$0.30
$1.50
61.0
Repack
Cost per Invoice - Repack
Repack Labor Variance
($0.05)
22.4%
$0.02
-12.2%
$0.01
-1.0%
+/- $0.02
+/- 10%
$0.01
-1.0%
+/- $0.02
+/- 10%
Receiving
Cost per Invoice - Receiving
Cost per Line - Receiving
Receiving Same Day
$0.37
$1.77
99.4%
$0.33
$1.55
97.6%
$0.30
$1.44
90.5%
$0.31
$1.46
95.0%
$0.20
$1.40
83.8%
$0.35
$1.46
99.0%
Product Control
Inventory Adjustments
$7,953
($2,000)
($7,000)
($7,000)
($4,000)
($4,000)
Shipping & Picking
Same Day Shipping
Shipping Package Quality
Picking Scans per Hour
Ship QC Invoices per hour
Cost per Invoice - Shipping
98.9%
99.7%
163
57
$1.62
95.0%
99.9%
144
51
$1.66
87.4%
99.9%
162
51
$1.20
99.0%
99.8%
160
50
$1.32
86.8%
99.5%
168
53
$1.00
99.0%
99.8%
160
50
$1.24
Warehouse
Cost per Invoice - Warehouse
Cost per Line - Warehouse
$0.28
$2.89
$0.23
$2.36
$0.07
$2.30
$0.08
$2.70
$0.06
$2.00
$0.08
$2.70
Returns
Cost per Return
Same Day Returns
$2.48
80.6%
$1.87
100.0%
$1.37
87.0%
$1.87
99.0%
$1.06
99.0%
$1.87
99.0%
Training &
ERG Reliability
99.1%
Conduct DKS to Schedule
100.0%
Dept - Direct Training Expenditures as % of Payroll
2.7%
97.7%
100.0%
2.1%
92.9%
100.0%
3.5%
90.0%
100.0%
3.0%
92.0%
Quarterly
Quarterly
90.0%
Quarterly
Quarterly
Process Management
ISO Corrective Action
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Results Management
Performance to Budget
$20,000
Productivity: Profit $ per Employee Cost $
$4.98
$20,000
$4.51
$20,000
$5.80
$25,000
$5.73
$4,000
$5.80
$5,000
$4.44
Area Process
2011 YTD
* Not actual numbers. Numbers are for illustration purposes only.
1
2
NA NA
NA NA
3
4
NA
NA
Employee Performance
Shipping & Picking Productivity: 6/10/11 through 6/17/2011
Employee IDName
11111
22222
33333
44444
55555
Stan Frink
John Doe
Jane Doe
Jim Smith
Jill Smith
Home
Dept
Shipping
Picking
Shipping
Shipping
Picking
Packages Shipping
Shipped Hours
202
678
472
392
187
* Not actual numbers. Numbers are
for illustration purposes only.
4.5
10.3
6.6
5.3
4.2
Packages Picking
per Hour Scans
44.9
65.8
71.5
74.0
44.5
364
2196
891
1548
1447
Picking
Hours
2.2
15.1
4.4
9.9
10.6
Scans/Hr
165.5
145.4
202.5
156.4
136.5
Company Daily Dashboard
Daily Dashboard - Company Level
Date Range: 6/10/2011 thru 6/16/2011 11:59 PM
Date
Invoices
Gross Sales
(Actual)
Gross Sales
(Goal)
Gross
Sales %
of Goal
Margin
%
Inventory
Inventory
Goal
Inventory
% of Goal
In Stock
Rate
(Goal =
85%)
Same Day
Shipping*
(Goal =
99%)
6/16/2011
1,000
$100,111
$119,265
84%
36%
$153,000
$150,000
102%
79.3%
97.0%
84.2%
6/15/2011
1,200
$98,148
$108,675
90%
32%
$150,000
$150,000
100%
79.2%
96.8%
83.8%
6/14/2011
1,300
$81,136
$78,434
103%
36%
$124,000
$150,000
83%
78.8%
96.1%
71.8%
6/13/2011
1,400
$75,247
$78,061
96%
32%
$115,000
$150,000
77%
78.7%
97.1%
80.1%
6/12/2011
1,500
$73,284
$70,591
104%
35%
$112,000
$150,000
75%
77.7%
95.7%
63.8%
6/11/2011
1,600
$79,173
$87,145
91%
34%
$121,000
$150,000
81%
78.3%
Saturday
85.4%
6/10/2011
1,700
$100,765
$105,536
95%
34%
$154,000
$150,000
103%
79.0%
95.7%
76.2%
* Not actual numbers. Numbers are for illustration purposes only.
Time
Service
Factor
(Goal = 75 85%)
Key Elements – Performance Measurement System
Systematic Review Process
Company
Scorecard
Monthly SLT
Review
Monthly
Review with
President
Department
Scorecard
Area Process
Measures
Employee
Performance
Monthly DLT
Review
Supervisor
Daily Review
Key Elements – Performance Measurement System
Take Action – Value Creation
Creating Value
Key Elements of Performance Measurement System
Take Action - Value Creation
• Review of results generate process improvement and innovation
• Three categories at Midway:
– Corrective Actions from review of process measures
– Innovation from continuous improvement ideas
– “Bucket List” for strategically significant ideas
Key Elements – Performance Measurement System
Take Action - Value Creation
- Results not meeting goal for three months - establish Action Plan
* Not actual numbers. Numbers are for illustration purposes only.
Key Elements – Performance Measurement System
Take Action – Company Action Plans (CAPs)
Department Action Plans (DAPs)
- Track Action Plan Results through integration into the process.
2012 MidwayUSA Strategic Plan Execution
Measure
% Complete
% Goal
16%
16%
VAT Redesign
UPC Acquisition*
Slotting (2-Year Plan)*
Sitka Niche Marketing Campaign*
Reward and Recognition Process Re-engineering
Relocate Support Departments to Roosevelt Building
Receiving Rewrite (2-Year Plan)
Product Recommendations
Product Page Improvement
Status (2)
In progress
Completed
In progress
Completed
In progress
In progress
In progress
In progress
In progress
Product Center Re-engineering to Support Merchandising Work System (2011-13)
In progress
Initiative (1)
Start (2)
Complete (2)
Proj Compl Date (2)
4/1/2012
10/30/2012
10/30/2012
2/1/2012
5/31/2012
5/31/2012
1/3/2011
11/7/2012
11/7/2012
1/23/2012
12/31/2012
12/31/2012
1/3/2012
9/30/2012
9/30/2012
11/15/2011
10/31/2012
10/31/2012
7/1/2011
11/19/2012
11/13/2012
2/1/2012
8/31/2012
8/31/2012
2/6/2012
10/31/2012
10/31/2012
10/1/2012
12/31/2013
12/31/2013
Key Elements – Performance Measurement System
Communicate
• Communicate Improvements
– SOTB and Qtrly DKS
– Monthly DLT and staff review
– Daily dashboard review
• Celebrate Improvements
– Formal/informal R & R
– Engages Employees
Key Elements – Performance Measurement System
Value Creation – Repeat the Process
Creating Value
Value Creation – Driven through Leadership System
“Results” of Excellent Performance Measurement System-Value Creation and Performance Excellence
1. Deliver every improving value to customers and stakeholders
– Loyalty
– Growth
– Sustainability
2. Improves overall organizational
effectiveness and capabilities
– Continuous Innovation
3. Organizational and personal learning
– Engagement
– Organizational DNA
Questions?