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Balanced Scorecard: Customer Perspective The Balanced Scorecard Essay

Balanced Scorecard: Customer Perspective The balanced scorecard (BSC) developed by Robert Kaplan and David Norton is "one of the most highly touted management tools today" (Gumbus, A. & Lussier, R. 2006), and is used extensively by Fortune 1000 companies to "set strategy and align operations to achieve breakthrough results" (Gumbus, A. & Lussier, R. 2006). Is the balanced scorecard a tool only for the multinational or conglomerate firm? Increasingly no, as small to mid-sized firms are embracing BSC as an effective "strategic planning and measurement system" (Balanced Scorecard Institute) which allows for organic growth, greater profitability, "innovation, and outstanding customer service" (Niven, P.N.D.). An analysis of three firms: Hyde Park Electronics, Futura Industries, and Southern Gardens Citrus demonstrate the positive impact of the BSC for small to mid- size entities.

The balanced scorecard was designed with the understanding that "financial measures alone were not sufficient...

& Lussier, R. 2006). Kaplan and Norton devised a framework which utilized four perspectives: financial, customer, internal process, and learning and growth. In analyzing the above mentioned three firms, the focus will be on the customer perspective and its application to a successful BSC implementation.
The customer perspective originates from the question of "how must we be viewed in the eyes of our consumers" (Gumbus, A. & Lussier, R. 2006). Breaking that proposition down further, companies must determine who their customers are, what do these customers expect from us, and what value is provided to them (Niven, P.N.D.).

For Hyde Electronics "the management team felt that measures of customer satisfaction are increased sales and increased income that would result from product acceptance and the generation of repeat customers" (Gumbus, A. & Lussier, R. 2006). Revenue and income metrics tied in well with the financial…

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The BSC at Southern Gardens Citrus utilizes the customer perspective in regards to percent of shipments within specification, loading cycle time, and customer service. On shipment specification the percentage has hit 99.86 in 2002 from a low of 70% in 1995. The result of the customer perspective metrics and the BSC overall; catapulted SGC to a Balanced ScoreCard Collaborative Hall of Fame winning company. (Gumbus, A. & Lussier, R. 2006).

Analysis

"Customer Centric" is an approach to doing business in which a company focuses on creating a positive consumer experience at the point of sale and post-sale" (Business Dictionary N.D.). The success of adopting a "customer centric" approach depends on the Customer Value Proposition which is the unique added value an organization offers customers through its operations" (Balanced Scorecard Institute. N.D.). Succinctly,
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