Balanced Scorecard Examples: Airline & Jewelry Store
Balanced Scorecard of a Regional Airline
| PERSPECTIVE | OBJECTIVES | PERFORMANCE MEASURES | TARGET | INITIATIVES |
Financial | Increase Profitability Lower Costs | Plane Cost Seat Revenue | 25% per year | Standardize Planes Optimize Router |
Customer | Lower Prices On-time Flights Increase Customer Base | Number of Customers Customer Ranking | 98% Satisfaction First in Industry | Customer Loyalty Program |
Internal Processes | Improve Departure Time | On-time Departure | ≤ 25 minutes | Cycle-time Optimization Program |
Growth and Learning | Align Ground Crews | % of Ground Crew Stockholders | 100% by Year 6 | Ground Crew Training Stock Ownership Plan |
Strategic Planning System Steps
- Toyota spent years studying processes. Setting the context.
- Tesla links strategy to resource allocation. Capital expenditure budgets.
- Inditex’s planning system for the next two years, including individual strategic plans. Business plans.
- Aldi misses its target. Operational plans and performance targets.
- The City of Vancouver 2022 consensus. The corporate plan.
- Aldi Stores Ltd’s application and committee member. Approval by board.
Balanced Scorecard: Jewelry Store
| PERSPECTIVE | OBJECTIVES | PERFORMANCE MEASURES | TARGET | INITIATIVES |
Financial | Increase Profitability | Increase Company Profitability by 15% | Financial Statements | Negotiate Installment Partnerships with Credit Card Companies |
Customer | Create a More Attractive Store for Customers | Increase Average Daily Customer Visits by 20% | Customer Count | Improve Window Jewelry Display and Invest in Social Media |
Internal Processes | Become a Benchmark in Customer Service | Increase Compliments in Customer Service by 15% Reduce Complaints by 80% | Statistical Analysis of Customer Service Reports | Redesign the Customer Service Process |
Growth and Learning | Develop a Sales Force of Experienced Professionals | Replace 30% of Salespeople | Number of New Contracts vs. Staff Terminations | Start the Recruitment and Selection Process |
Cisco’s Organizational Design System
a) Cisco’s organizational design system in the 1980s:
The organizational design system of Cisco in 1980 is U-Form because it is centered around the administrative office and John Chambers, who was responsible for the different work and resource flows.
b) Cisco’s organizational design system in 2007:
The organizational design system of Cisco in 2007 is the star model because Cisco used employees and rewards to implement that strategy.
c) Cisco’s organizational design system in 2011:
The organizational design system of Cisco is centered on customer focus because Chambers modified the organizational design system in terms of customer segments to achieve global scale on one end and organized around products to achieve local adaptation on the other end.