¶ … Futura Industries implemented the Balanced Scorecard approach and its apparent effects
At some companies, the Balanced Scorecard approach is solely used to improve the company's financial 'bottom line' and to set benchmarks for financial performance. However, the innovative organization Futura Industries has taken a different approach. The company sent benchmarks for success in three specific quadrants: "customer service, financial, and internal operations," resulting in "50% increase in revenue without adding personnel from 1996 to 1999" (Gumbus & Johnson 2003). Before it embarked upon using the BS, the aluminum manufacturing company was well-known for its use of financial and customer metrics. It already "had internal processes focused on quality," but felt that the way it used its employees was lacking and that it did not fully capitalize upon its human assets (Gumbus & Johnson 2003). Even its website reflects this stress upon quality improvement: the surfer is greeted with the message: "98.7%pass yield and .02% returns for 2010" (Futura, 2012, Official Website).
Of course, all companies state in words that they value their people. But Futura's use of the Balanced Scorecard ensured that this goal was translated into real, measurable data: "In order to focus on recruitment and retention, Futura measures turnover, which the company has decreased by 33% since 1998, and in an industry with norms of over 50%, Futura has a rate of 10.7%...
Futura Industries The balanced scorecard approach is a framework for building a better organization. It relies on the organization placing emphasis on four different perspectives, with the theory being that if the organization excels at these four perspectives it will achieve success. The dimensions are customer, financial, internal business processes and learning & growth. At Futura, Susan Johnson chose to focus most of the company's effort on the learning and growth
Balanced Scorecards: The Customer Service Perspective Balanced Scorecards The Customer Service Perspective Hyde Park Electronics, Futura Industries and Southern Gardens Citrus (SGC) all were able to transform their businesses using Balanced Scorecard (BSC) methodologies that aligned each of their respective businesses to customers so that value was consistently created and delivered, growing each business in the process. Each was able to quickly progress beyond using BSC frameworks as a means to track financial
Balanced Scorecards (BSC) are designed to provide insights into which customer-centric strategies are the most profitable and scalable over the long-term (Glykas, Valiris, 2011). Often customer-centric measures of satisfaction, sales and repurchase rates hide the real issues of customer profitability, lifetime customer value and cost to serve the most loyal customers (Kaplan, 2005). A balanced scorecard must take into account the entire value chain of a business if it is
Balance Scorecard for Fatura Business organizations operate with the sole objective of effectively utilizing the input factors in order to maximize on the output. For this case, output is measured in terms of performance, which, essentially relates to the profits or customer satisfaction. In the industrial age, most managers relied heavily on conventional financial metrics as the only strategic measure to align the activities of the organization to the goals and
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
Learning Growth Perspective Balanced Scorecard Futura Industries Balanced Scorecard The success or failure of any business entity is greatly dependent on how well align its goals and management systems are with its strategic plans. There have been cases reported where businesses failed to make it big despite of having excellent strategic plans. This was because they failed to keep their management systems and activities in line with their strategic plans. While management in itself
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