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Balanced Scorecard(7)

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					                                   Balanced the Corporate Scorecard

Sentra Software – data-mining software

Decision of personnel, investment and pricing

“Holistic View” about the company and weave a coherent strategy!

                          The Holistic Balance Scorecard – 4 Sided Pyramid

How do customers see us? (customer perspective) Pricing / Customer Ranking / Satisfaction / Market Share
What must we excel at? (internal perspective)
Can we continue to improve and create value? (innovation and learning perspective) % Revenue from new
service / rate of improvement / staff attitude / # of employees suggestion / revenue per employee
How do we look to shareholders? (Financial perspective) Return on Capital Employed / Cash Flow /
Profitability / Profit Reliability / Sales Backlog

   1) Financials – what are the financial goals of the company?
          a. Cut Expenses / Increase Price / Increase Sales Volume
   2) Customers – what segments (Techies (Increase the Bells and Whistles) and General Managers
      (Increase Ease of Use))
   3) Internal Processes – Value to customer / Product Development Team
   4) Learning and Growth – Performance Metrics and Re-evaluation

                                                 Goals!

   1) Increase Revenue and Profitability
   2) Increase Segments – Techies versus General Managers
   3) What Values – Best Data Mining Software

Other Notes: Steve Tucker – President of Gigasoft hires you, Sentra Software / Goal is to take Sentra
Software from part-time to full time Software firm. / Leaders (Drivers) and Laggers (Outcomes) / Cause and
Effect

Interactive: Strategy – Cause and Effect / Performance Metric – communicate strategy and rate
performance

                                           Lesson’s Learned

   1) Everyone has to be on the same page – Mission Statements are important in this way since it
      refocuses company. (Article 3) Mission Statements – Goal is to translate a company’s strategy and
      mission statement into specific goals and measures – then track those measures
   2) Concentrate on the important market – do not over expand and be all things to all people. Know
      your customer / build a moat around your castle! (Rise and Fall: J. Peterman Co.,)
   3) Take baby steps unless dramatic action is needed. Organizations are like humans, too dramatic of a
      step will harm unless the cancerous, then dramatic action!

                                           Winning Strategies

Cut incomes (Customer Service and Product Development) and increase price right away, then baby steps
going forward to survive.
Let Data Diggers make a mistake by over expanding, then jump all them and take market share. In the
short-run, the market is a voting machine, in the long-run, it is a weighing machine

                                           Losing Strategies

1) Having wrong metrics? Looking at the wrong information?
2) Over-kill – Analysis Paralysis
3)

				
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