1. Build a Balanced Scorecard for Pitney Bowes, Inc. (See links and information in the bottom).
2. Identify the strategic objectives of the entire organization and the secondary objectives for the unit.
3. Develop three specific objectives within each of the four perspectives for the unit. Each objective should have at least one target metric associated with it that can be quantified.
To be clear, for each metric for each period there are
(a) target values,
(b) actual values, and
(c) a methodology for obtaining the data and calculating the actual values.
You should include the target values and explain the methodology for obtaining the data and calculating the actual values each period. It would be helpful to provide illustrations or examples of the methodology for obtaining the data for target values and calculating the actual values each period.
A good example of the use of metrics is found at http://www.cio.com/archive/051502/scorecard.html
The specific information needed to calculate each metric should be discussed. For each metric discuss the appropriate target value and the actions that need to be taken to achieve the target. The paper should be no more than 15 pages, including the reference list, and Executive Summary.
Links about Pitney Bowes:
PB previous Score Card:
PB Customer Data Quality (CDQ):
About PB: http://www.pb.com and http://en.wikipedia.org/wiki/Pitney_Bowes
PB Finance: http://finance.yahoo.com/q?s=PBI&d=t
Please see the attached file.
About Pitney Bowes
Pitney is the world's biggest maker of postal meters and mailing equipment and provider of mailing and delivery software and services to companies, is ranked 394th in the 2006 Fortune 500, with $5.5 billion in revenue and $526.6 million in profits.
It has got following divisions:
? Global Mail stream Solutions,
? Global Business Services,
? Capital Services.
Mission of Pitney Bowes
"The Pitney Bowes brand promise - Engineering the flow of communication? - describes what we do for our customers every day."
(Source: Corporate website)
The Strategic objectives of Pitney Bowes can be compared with different measurement areas for Balance Scorecard as follows:
a. Revenue, Profit margins, growth in operating cash flows can be tied with financial goals of measurement of Balance Scorecard.
b. Customer satisfaction, Market Share and Customer loyalty can be tied with the customer goals of measurement of the Balanced Scorecard.
c. Direct Distribution Performance (Supply chain Performance) and Cost of Manufacturing can be tied with internal business processes (Operations) goals of measurement of the Balance Scorecard.
d. Employee satisfaction, retention and development can be tied with Learning and Growth goals of measurement of the Balance Scorecard. Also business goals In IT-Industry can be visualized by applying internal customer relationship management as described by Frank L. Eichorn "IntCRM provides a quantitative and visual evaluation of the key criteria that affect an organizations propensity for managing internal customer relationships and delivering systems that meet business needs ( Pg 2, who Owns the Data (2004)) Defining for Quadrant as it relates to performance measure
In order to build right culture, firms should focus on several key attributes to ensure the success of the Firms:
? Developing leadership skills
? Encouraging personal accountability
? Maintaining a higher standard of ethics and integrity
? Building a workforce with diverse backgrounds, skills and potential
? Commitment to Customers
? Unbeatable employee experience
Firm need to integrate the following inputs from different levels:
Management will require information on inventory costs, on raw material supplies, monitoring of the productivity of the employees. Financial records such as journal, ledger will provide all the required information.
An accounting report will be helpful on the productivity of the Operations; it will contain cost of the employees and the output of them. There will be comparison with the previous year. This report can be made monthly. Moreover financial reports such as cash flow statement, ratio analysis, working capital situation, income statement, balance sheet will be required. . He will require basic information on the price of the raw material, wages and salaries paid to the staff and other expense to determine the cost of various activities with in the organisation. Thus financial statement will provide all the basic information to the cost department. A management accounting report will be on Cost Analysis for each product. It will be done monthly. Also he will be keen on knowing the growth in sales, profit, operating cash flows through above reports.
One of the tools is the use of a Customer Relationship Management (CRM) database to track historical sales. Instead of manually recording and analyzing the sales and marketing data it is much more convenient through use of a new information system. The organization can record valuable historical data about sales orders, product information, and customer sales information, including prices paid, costs, margins, and discounts given to make important decisions. It will help in understanding the customer and fulfilling the objectives.
Using CRM Companies would be wise to consider the different sub-groups of customers they have and how they differ in terms of types of purchase, cost of purchases, servicing needs, communication methods, total purchase transaction time, post-purchase needs, complaint issues, and others. Even more important to identify may be the commonalities between these same customers, and the characteristics that seem to be present for most or all of them.
This type of analytical dissection of a company's existing customer base will allow for customer profiling. Profiling is key to eventually understanding everything from how to best service the customer to delineating the best methods for marketing, selling, and retaining these customers (and more just like them). The rule of the thumb is to never assume anything about your customers.
Measuring Quality and Customer Satisfaction
Most emerging approaches to the measurement of overall productivity and management results agree on the importance of customer ...
Over 2700 words on how to build a balanced scorecard, identify strategic objectives and develop such objectives for a given company.