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    Implemented the balanced scorecard and its effects

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    Carefully review this article, and then prepare your analysis of how Saatchi & Saatchi implemented the balanced scorecard and its apparent effects. Your analysis should be structured in terms of the following four issues (you will be using essentially this same comparative evaluation framework for the first four modules of this course):

    Introduction: What was the situation for Saatchi & Saatchi in the mid 1990s? The management team adopted an approach that was primarily two-pronged: the financial perspective and the customer perspective. In terms of the financial perspective, what goals did the new leadership set for the company?

    Analysis: How did the company categorize its different business units (agencies)? What strategies were chosen for each unit? Saatch & Saatchi also adopted several strategies that related best to a customer perspective. What were they?

    Conclusion: Did the financial strategies make sense for each given unit? Why or why not? Did the acquisition by Publicis Groupe SA change the results of the BSC? Now that you have analyzed both "prongs", did the two approaches worked in synthesis or in conflict?

    Evaluation: Assuming that it would be best if the customer perspective strategies meshed with the financial strategies, do you think the customer perspective reinforces or conflicts with their financial strategies? In your opinion (supported, of course, by your readings), was the implementation done well or poorly?

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    Solution Preview



    Prior to the 1990s, Saatchi & Saatchi enjoyed phenomenal growth. However, as a result of the economic and financial crisis brought about by the Asian crisis in the 1990s this growth was suddenly stopped. Given the changes within the company's macroeconomic environment, it reevaluated its existing vision, mission and strategies which resulted to changes. These changes also resulted to the establishment of new financial goals which are aligned with the company's new vision and strategies.

    The following are the goals that Saatchi & Saatchi's new leadership established in terms of the financial perspective of the team's approach to combat the effect of the economic recession in the 1990s:

    1. A revenue growth rate higher than the market
    2. A 30 per cent operating profit for the additional revenues
    3. Earnings per share to be double

    Given the above financial goals and its new vision and strategies, Saatchi & ...

    Solution Summary

    The solution examines implementing a balance scorecard and its effects on Saatchi & Saatchi.