Strategic Plan

Strategic Plan

Introduction

The balanced scorecard (BSC) was popularized by Robert Kaplan and Greg Norton in the 1990s. The BSC is a strategic tool that seeks to align objectives of the enterprise with its vision and strategy. As such, it focuses on four perspectives: financial, customer, internal business processes, and learning and growth. Measurable goals within each objective are set, monitored, and evaluated. It is balanced because it looks at financial and nonfinancial measures in reaching the company's objectives (Horcher, 2001). It is integrated, as success in meeting goals of one perspective will result in improved performance in other perspectives.

Discussion

With an enhanced interest in environmentalism and sustainability, many have suggested incorporating sustainability into the BSC. There is no agreement on how to incorporate sustainability into the BSC. Three approaches have been utilized. The first approach integrates environmental and social aspects into the existing perspectives (Meliones, 2000). This approach considers sustainability as another strategic aspect of that perspective, and is seen as particularly appropriate in cases where sustainability is already integrated into the market system. This approach does not appear to have gained much use in practice (Kaplan & Norton, 2006).

Balance Scorecard for Sun Ceramics

Sun Ceramics understands the arts and crafts industry and successfully identified small and large competitors, allowing them to design viable strategies. The approach adds an additional perspective to the existing four in order to incorporate environmental and social aspects. . Their current status indicates that attention to small and large competitors in the arts and crafts industry is important to that success. In addition, the analysis points to the importance of continued development of their excellent customer service initiative. Adding a nonmarket perspective allows inclusion of sustainability in the organization's strategy (Horcher, 2001).

Objectives

Indicator Results (effect)

Indicator Guide (cause)

Initiatives

Financial

 

 

 

Maximize Value Added

Economic Value Added (EVA)Returns (ROCE)

Mixed Income

Asset Management

Customer

 

 

 

Build Customer Confidence

Customer RetentionCustomer Satisfaction

Depth of RelationshipClaims Resolved

Monitoring Program Key CustomersAgiel Care Program Claims

Processes

 

 

 

Understand Customer Needs

New Needs Detected

Hours with Customers

Marketing Program

Designing the Customer Solutions

Product Development Cycle

Process Improvements

Program "Solutions"

Give Customer Service

Units DeliveredUnit cost

Cross Selling Products

Program "Just in Time"

Learning

 

 

 

Personal Effectiveness

Revenue per Employee

 

 

Improve Working Environment

Employee Satisfaction

Labor Claims

Program "Best Employee"

Skills Development

Skills for Cross Selling

Training per PersonSelf

Self-Learning Program Progress

Strategic Plan

Current options for company team building, birthdays, and other special occasions have limited to meet their needs. Those opposed to this approach argue that this leads to a wrong conclusion, missing a fundamental understanding of the BSC. Sustainability or environmental strategy is a theme of the strategy that spans the existing perspectives and is not separate from the other perspectives. However, Sun Ceramics must focus on continuing to develop innovative ceramic products and expand offerings for artistic expression within their special occasion concept. Opponents observe that this approach lumps anything associated with sustainability into a single perspective whether it involves learning and growth, internal business, customer, or financial issues (Meliones, 2000).

The third approach develops a separate scorecard, which is referred to as the sustainability balanced scorecard (SBSC). Bright new ideas and concepts will be implemented for Sun Ceramics to continue making progress. This approach evaluates each of the four perspectives along ...