BSC

• Balance scorecard


  Translates organisations missions to performance measures for implementing strategy, recognising financial and non financial performance as targets
• 4 perspectives of Balance scorecard


  • Financial
  • Customer
  • Internal business
  • Learning and growth
• Financial perspective


  Perform well to satisfy shareholders
• Customer perspective


  Perform well to achieve customer satisfaction and loyalty
• Internal business perspective


  Internal structure such as adequate facilities need to be in place to satisfy customers & shareholders
• Learning and growth perspective


  Must innovate and maintain customer satisfaction to grow
• Balance scorecard


  • Helps manager develop critical success factors and measure of value drivers
  • Doesn't solely rely on financial measures
  • Recognises importance of customer satisfaction and innovation
  • Provides a method of short term and long term concerns by focusing on short terms financial indicators
• Upgrading facilities


  Harms financial perspective but leads to better customer perspectives
• Balance scorecard


  • Helps managers understand linkages between financial and strategic measures
• Important employees are involved in setting objectives so they remain motivated and understand organisation strategy
• Balanced scorecard birds application
• Financial perspective objectives


  • Financial profitability
  • Low energy costs
• Financial perspective KPIs


  • Revenue growth rate
  • Energy usage per unit of production
• Financial perspective targets


  • Achieve a 5% increase in annual revenue
  • Decrease energy consumption by 10% compared to previous year
• Financial perspective initiatives


  • Product diversification eg: introducing vegan options/ more speciality items
  • Conduct energy audits for areas of improvement /implement energy efficient equipment
• Customer perspective objectives


  • Customer satisfaction
  • Customer loyalty
• Customer perspective KPIs


  • Customer appraisal using ranking system
  • No of repeat customers
• Customer perspective targets


  • Achieve 90% or above customer satisfaction within 6 months
  • Implement customer loyalty club card
• Customer perspective initiatives


  Additional training for staff /quality control measures
• Internal business perspective objectives


  • Product quality
  • Streamline supply chain operations to reduce carbon emissions
• Internal business perspective KPIs


  • No of customer complaints
  • Carbon footprint per unit of production
• Internal business perspective targets


  • Reduce complaints by 20% within 2 years
  • Decrease carbon footprint by 10% compared to previous year
• Internal business perspective initiatives


  • Enhance quality control measure adhering to food safety act 1990/staff training
  • Optimise delivery routes /seek petrol vehicles or partnerships with vehicle manufacturers for electric
• Learning and growth perspective objectives


  • Introduce new course on sustainability practices
  • Employee satisfaction
• Learning and growth perspective KPIs


  • No of training sessions per employee
  • Employee turnover rate
• Learning and growth perspective targets


  • Conduct quarterly sessions per employee
  • Employee turnover rate must stay below 10% compared to previous year
• Learning and growth perspective initiatives


  • Access to online training modules and environmental awards at end of content
  • Discounts/compensation for employees