Lessons Learned From the Balanced Scorecard Implementation at BAE BAE Systems competes in several of the most complex, capital- and knowledge-intensive areas of the aerospace and defense industry making each of their product lines and divisions highly dependent on accuracy, efficiency and quality management. For BAE Systems, ensuring exceptional orchestration of each aspect of a project is essential for their growth and continued viability as a business. From their aerospace product lines to the defense-related product lines that include components, assemblies and subassemblies, the tighter the coordination across each of the divisions that comprise BAE, the more successful the company operations. With each of the divisions lacking coordination and not being synchronized with each other, BAE was beginning to fall behind competitors while seeing their performance to existing contractual schedules also slip (Murby, Gould, 2005). With the business units lacking integration and drifting apart, senior management chose to implement the largest strategic change management progamme in the company's existence. The plan centered on breaking apart the divisions of the company and re-assembling them to ensure greater interlocking processes and systems than had been present in the past, creating a more unified and coordinated enterprise in the process (Murby, Gould, 2005). BAE Systems was formed when British Aerospace, who had chosen to become privatized in 1979, merged with Marconi Electronic Systems in 1999. The combining of these companies created the largest European aerospace and defense contractor and the second largest globally at that time (Murby, Gould, 2005). As the mergers brought together very-scale aerospace and defense contractors, the total headcount of the companies quickly swelled to over 100,000 associates and expanded the reach of the enterprise to nine of the largest aerospace and defense markets including Australia, Canada, France, Italy, Germany, Saudi Arabia, Sweden, the UK and the U.S.A. that together accounted for annual sales of over £12 billion with an order backlog of £41 billion based on contracts with key customers globally (Murby, Gould, 2005). With business development, operations and sales across nine of the largest aerospace and defense markets, BAE Systems was still unable to attain consistent revenue and profit growth. A common reaction...
BAE Systems initially tried all of these strategies in addition to implementing activity-based costing, systems analysis and business process reengineering (BPR) strategies yet none of them worked (Murby, Gould, 2005). Based on the failure of all of these traditional approaches to solving large-scale enterprise performance management problems, the senior management at BAE Systems chose to completely realign divisions using an innovate approach to implement Balanced Scorecard (BSC) analysis at the process, performance and change management levels of the organization.
Balanced Scorecard The internal business processes perspective of the balanced scorecard highlights metrics that allow managers to understand how well their business is running. These processes should be tied closely to enhancing financial objectives, and should reflect a high level of congruence with the customer and learning & growth perspectives as well (BSI, 2013). The organization's mission and vision should be the basis for this analysis. At Cattaraugus Rehabilitation Center the focus
Balanced Scorecard Google's internal business processes are surprisingly informal for a group of engineers. Rather, Google likes to encourage the creative side of their workers, and so there is an emphasis on projects, even where there is no clear objective at the outset. The company also embarks on projects where there is no clear profit potential -- such is life at a company with $50 billion in the bank. The reality
Bsba Integrative Project Learning Growth Internal Business Processes Customer Service Financial Employee training hours, employee satisfaction, New loans created, new accounts, new products introduced, cross sells, and referrals. Number of products per customer, number of new customers, customer satisfaction, customer retention, sales calls to customers, and thank you calls to existing customers. Outstanding Loan Balances, Deposit Balances, Noninterest income, Financial Performance Measures Internal Business Process Objectives and Performance Measures Customer Objectives and Performance Measures VISION & STRATEGY Learning & Growth Objectives and Performance Measures The causal chain indicates that
BSC Customer One of the aspects of the balanced scorecard framework is the customer service perspective. This perspective is based on the idea that there is "an increasing realization of the importance of customer focus and customer satisfaction in any business" (BSI, 2013). The general idea is that there is a strong link between pleasing the customer and achieving the desired financial results in particular. If nothing else, it is critical
Balanced Scorecard: Internal Business Perspective Increasingly companies large and small are implementing the balanced scorecard (BSC) as "a management system that enables organizations to clarify their vision and strategy and translate them into action" (Balanced Scorecard Institute. N.D.). In Kaplan and Norton's framework of the BSC they articulated four distinct perspectives: financial, customer, internal process, and learning and growth; because "financial measures alone were not sufficient to measure performance" (Gumbus, A.
This allows for greater levels of planning and cooperation, and fills in the information gap that currently exists between the factory floor and the rest of the supply chain. Lexmark provides an example of waste. Recently, the company found itself with more than $1 million in scrap from one lot. Engineers had insufficient information to isolate and fix the problem, so were instead relegated to crisis control. With more accurate
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