Management: The new scorecard system
In business, most of the companies face stiff competition of the others. Lack of strategies to deal with the competition may lead to failure of business due to poor management. Having such business solutions, scorecard system may facilitate positive performance of the business. Managers use scorecard to keep track performance of the business (Kaplan 1996).Johansen company faced competitive threat from the investors but having Clark as the manager, he planned to sort out things to remain in the position beside scorecard suggestions that he should receive an overall rating.
Various challenges had impact to the performance of the company. First, the company had financial difficulties due to failure to include executives in decision making following up over reluctant of the members. This was solved by recommending replacement of senior executives aiming at financial performance improvement since the new body was curious to initiate ideas. In addition, there was implementation of based incentive system on financial matters making store managers to drive sales critically (Norton 1996). Secondly, analyzation of employees and financial data fueled compromises n customer services besides its profitability. This made the leadership team to change the incentive behavior.
Besides financial performance of the Johnsen's company, there is need to evaluate various possible solutions to the problem. Challenge to the financial problems may create low sales turnover in the market thus limiting investment returns of the company. Putting emphasizes on determination of sales promotions and stores marketing creates positive image to the entire business thus creating new customer demographics due to improved customer service. Furthermore, implementation of the new leadership team focuses on performance of the financial statements thus creating erosion on the success of customer service.
Team work provides greater decision making especially to the places of work. The agreement to provide the new scorecard system as a new incentive and performance was initiated because of the stores managers'role. Under the performance of this new system, there will be assessment of stores managers including leadership, financial, customer service and strategy thus enabling ratings of the store managers. The ratings may be in accordance with the numerical scale, meet, below and exceeds expectations.
The company strategy sets out forward movement to achieve the desired goals. It is facilitated by creation of companies'alignment and cohesiveness. Evaluation of the store managers on promotion of Johnsen's materials and brands marks the journey of the strategy. Financial performance goal is the main company strategy (Norton 1996). Customers marks the start of any business in the society. Positive factors have enacted greater impact to the success of the implementation of the financial performance strategy. They include better communication between organizations thus creating room for better decision making. In addition, top managers inclusive of the executives exercises positive individual behavior. There is a big proportion of respect since managers with the highest ratings are promoted leaving no complaints.
Johansen's company structure on delegation and direction of duties marks its general improvement in performance. Human resource managers enact the role of forwarding the exercise results to? some? regional managers. This enable the whole leadership team to factor out various ratings of the stores managers. In addition, they also communicate employee complaints and turnover. According to the hierarchy, managers with the top ratings are promoted first to different regional levels (Kaplan 1996).
Due to the nature of financial statements, orientations of short-terms and leading indicators of forthcoming financial performance Johansen saw the significance of introducing business perspectives in the business (Drucker 2011). They include, financial perspective which highlights the individual outlook of the company's shareholders. The holding capital in terms of operating income measures the strength of the shareholders. Customer perspective clearly is the simplest way of how the customers values the company. A company delivery of materials to the customer at exact time and the percentage of sales from the new products in the market identifies the company relationship to the customer.
Efficiency as the measure in internal perspective highlights the flexibility and effectiveness of the operational tasks. Lastly, by use of research and development in business society innovation and learning perspective gives us room to continue with improvement while being creative in formulation of the ideas. Its measure articulates the proportional change in time margin (Norton 1996). Clark rating is below 5 because of the two reasons namely; low customer service and response rate. The physical location of Orange country was older and wealthier thus making the rate of survey to be low.
In conclusion, the new scorecard system should be viewed as an organizational strategy because through it customer relations can be enhanced thus emphasizing on customer service to improve response rate. Market response rate in dependent of locality of the business enterprise having forces such as social status such as wealth and size of the market.
P. F. Drucker, The Practice of Management (New York: Routledge, 2011
Kaplan, R. S., & Norton, D. P. (1996). The balanced scorecard: Translating strategy into action.