Essay: Strategic plan and balance scorecard

Strategic plan and Balance Scorecard

Financial perspective

The organizations need to attain three key strategic objectives under financial perspective. First, a general fund budget needs to be maintained, as deliberate move in balancing between projected venture’s incomes and expenditures on expended capital. Deliberate efforts ought to be made in ensuring that the interests of all stakeholders are met by responsible accounting procedures. Similarly, the organization may consider an increase on shareholders’ base by about 16% by engaging business diversification approach such franchise arrangements, going public on stock trading or even through planned mergers and acquisitions. Such an approach will assist the venture in raising more capital in an attempt to remain more competitive in the industry (Haines, 2000). Similarly, the organization competitive position may be enhanced by expanding ob business units offered in order to cover inevitable costs normally associated with loses resulting some particular unit’s poor performance. Such diversification may see the firm greater market share for profitability reasons. Targets aimed at financial resources should be availed in the process of accomplishing the company’s goals. Sound financial administration will therefore be essential for the business progress, through accounting for every financial expense in line with the financial measures.

Satisfactory fiscal administration practices play a major role in attracting investors who may be interested in future investments. Considerations may be made on enhancing as well as strengthening business fiscal health through variance measurements between the planned or even proposed budgets and the projected expenditures. For instance, the organization may consider allocating an overhead budgetary value at about 10% annually in order to regulate on unnecessary costs associated with overhead costs misappropriations. In addition, this may call for clear assessment procedures in ensuring sound management of all related costs structures. Secondly, the organization ought to focus on effectiveness and productivity by improving the perceived cost structure by considering a decline by 20 %. The success of this objective could be attained by excluding redundant costs or by efficient utilization of costs. For example, a firm will engage on deliberate move in disposing-off redundant assets on annual basis (Niven, 2002). Thirdly, the entity may expand the present revenue base probably by about 12 % on average basis. The trend may be raised higher pegged on positive economic performance on the business. Alternatively, depending on the size of the organization, leasing any extra assets or idle assets may assist in reducing related cost structure by a big margin. The organization may consider employing strategic objective through expansion of its market share base by maybe 15 %. Such an application would play a pivotal-role in enormously increasing the productivity by about 30 % possibly on three fiscals period.

Customer Value Perspective

First, business management can promote diverse consumers base by rendering services such as standardized products or excellent services to the defined market niche clients, especially those individuals neglected within the society. Customer fulfillment can be attained by strengthening the teams working within the entity. Secondly, clients will attain some levels of satisfaction by extension of marketing efforts or through exceedingly meeting their needs. The SWOT analysis can be kept in consideration as an attempt to evaluate on business’ strength or even related business progress. Finally, targeting a greater market share by an entity will go along way in strengthening its competitive efforts and play a great role in increasing consumers appeal. In addition, the application of a larger market share initiative will assist in maintenance of loyal clients through promotional activities and issuing awards to promote retention of clients’ value. According to Crum & Palmatier (2003), offering of standardized products, with attractive prices would ensure a wider and greater coverage of customers. Such an approach may play a role in improving on customer value by considering an increase on brand royal customers by about 20%.

Internal Operations Perspective

Internal operations perspective will center its objectives in strategic approach through steady increase in performance and productivity level. For example, the organization can apply an increase on productivity above 30 %. In productivity measurements, cases of projected numbers which occurred during the operation will be used over a designated period of time. Performance success will emulate a non-opposed achievement of the organization’s proposed objectives stated under the fiscal considerations on the venture. In order to enhance on goal attainment, the organization may involve managerial delegation practices in order to empower employee in quality decision making procedures. An entity can assign clients legal participation threshold to around 20%, being used as a performance indicator and a general overview of services delivery. Organization’s competitive edge through implementation and development of competent procedures or measures in organizational objective attainment is essential (Haines, 2000).

Growth and Learning Perspective

Organizational competence can be measured through frequent assessments and appraisal initiatives on the human capital. This would be a superfluous asset in growth enhancement.

Key objectives in this case will be focused on assistance of the venture to achieve its predetermined mission, at the same time augmenting the performance capacity. For an organization to achieve such a status, competent personnel are recruited so as to assist the entity to achieve its mission. Retention of employees ought to be highly improved in such a circumstance, and hence the turnover rate may be reduced by around 26%. Technological application consideration is very beneficial to marketing and other operations within the organization. For example, establishment of online operations would play a greater role in brand appeal creation in the prospect. Similarly, business operations can maintain innovative culture through re-investment in services such as refresher trainings and related courses depending on operations upon business expansion perhaps in future (Niven, 2002).

Secondly, organizations will maintain creativity/innovative culture by re-investing in in-session training or refresher courses based on individual requirements. Through this innovativeness, competitive workforce will be deliberately built. This will facilitate effective support to the businesses strategy. In addition, an organization would be a position to retain highly qualified, with recommendable expertise or even extremely skilled professionals. For example, an entity can train a group of about 10% at quarterly basis. However, frequent upgrade of working procedures will attract innovativeness and superfluous delivery of services, hence ensuring teamwork and competence levels skills achievement (Crum & Palmatier, 2003)

Appendices A: Balanced Scorecard-Grid

References

Crum C & Palmatier, G. (2003). Enterprises sales and operations planning. Bradford Canada: J. Ross Publishers.

Haines, S. (2000). The systems thinking approach to strategic planning and management. Boca Raton, FL: CRC Press Publishers.

Niven, P. (2002). Balanced scorecard step by step. London, UK: John Wiley and Sons Publishers.