Developing Strategic Objectives in Business
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2. Individual Assignment: Strategic Plan, Part III: Balanced Scorecard
- Resources: Exhibit 7-1 in Ch. 7 of Strategic Management
- Develop the strategic objectives for your business in the format of a balanced scorecard. The strategic objectives are measures of attaining your vision and mission. As you develop them consider the vision, mission, and values for your business and the outcomes of your SWOT analysis. You need to address the following four areas of the balanced scorecard when developing your strategic objectives:
Shareholder Value or Financial Perspective, includes strategic objectives in areas such as:
- Increase Market share
- Increase Revenues and lower costs
- Improve Profitability
- Improve Competitive position
Customer Value Perspective, includes strategic objectives in areas such as:
- Increase Customer retention or turnover
- Increase Customer satisfaction
- Increase Customer value
Process or Internal Operations Perspective, includes strategic objectives in areas such as:
- Improve process performance
- Increase Productivity
Learning and Growth (Employee) Perspective, includes strategic objectives in areas such as:
- Increase Employee satisfaction
- Increase Employee turnover or retention
- Increase Level of organizational capability
- Increase Nature of organizational culture or climate
- Increase Technological innovation
- Develop at least three strategic objectives for each of the following four balanced scorecard areas identified above (Financial, Customer, Process, Learning and Growth), so you will have a total of 12 broad strategic objectives. For example 'Increase market share' is a broad objective. Your objectives should be selected, in part, based on an evaluation of a number of potential alternatives to the issues and/or opportunities identified in the SWOTT Analysis paper and table you completed in Week Three.
- Create, in chart format, a table with the following headings ACROSS THE TOP: Scorecard area, strategic objective, metric, target, specific tactics to achieve the target. Do not use the 4 sided diagram in the text
- Then for each strategic objective, develop a metric and target using the chart you created. (For example, a strategic objective in the Financial Perspective is to increase market share. A metric to actually measure this strategic objective of market share increase is, "The percentage of increase in market share." The target is the specific number to be achieved in a particular time period. The target for the metric of "Increase market share" could be "Increase market share by 2% for each of the next 3 years" or an increase of 2% per year for 3 years.). Most students who score poorly on the scoreboard do not follow my examples of what goes in each column; for example they put #'s or %'s in the â??metricâ? column, when only the name of the metric is needed; or they place non-numerical targets in the target column instead of the numerical target. They also may not make their objective broad enough, as shown above
- Write a summary that explains your critical thinking on how you derived your strategic objectives from your vision, mission, values, and SWOTT analysis. Most students earn ZERO on this part as they do not describe the linkage or alignment of their chosen strategic objectives with the specifics of their mission/vision/values. For example if a value you have is superior customer service you could discuss how one or more strategic objectives are SPECIFICALLY linked to achieving this value.
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Solution Summary
The following problem answers questions regarding strategic objectives.
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Attached is the balanced score card.
Individual Balanced Score Card:
An organization's mission, vision or values plays an important part in determining the strategic objectives of a firm since they provide a direct linkage to each other (Norton, & Kaplan 2000). The increase market share strategic objective is found within the organization's financial perspective since it plays part in increasing the organization's market share which will be recognized through the measuring of the percentage increase in the market share after adding 2 sales men per location. The measuring of the percentages will assist the organization in determining if they have attained their vision which involves annual increase of 15 % in the market share.
The strategic objective of increasing the market presence is directly linked to an organization's vision of expanding to 1 new market every quarter. This strategic objective of an increased market presence would assist in achieving the organization's vision through opening new offices in Los Angeles. To gauge if the vision of the organization is being achieved, the metric employed will involve counting the number of newly opened market available whereby if there is one or more newly opened market within a quarter, then the organization's vision has been achieved.
The strategic objective of maximizing profitability will also play part in achieving the organization's vision of ...
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