BALANCED SCORECARD

1. BALANCED SCORECARD TEAM A2 Bo Kongthaisereekul Janet Ho Veronica Mwikwabhi Edelen Melo-Ortega Cresna Ponthy James Byrne 2 b. Winning strategies part 1

2. WaveRider’s BSC Deployment Fundamental Theory of BSCAdvantages and Disadvantages (Mitigating actions)Comparison of other deployment methodAssumptions (people & operation way) Wave Rider’s VisionDeployment Plan recommendation (Five years)Conclusion

3. BSC is tool for leader to communicate strategy to employee and external stakeholders the outcome and performance drives by which the organization will achieve its mission & strategy objectives • Measure Performance and Set Strategy: • Effective organizational performance management • Effective implementation strategies(Removing barriers for Financial measurement and Strategy Execution) Balanced ScoreCard – BSC (1990) Kaplan , R., & Norton, D. (1993, September-October). Putting the Balanced Scorecard to Work. HARVARD BUSINESS REVIEW , p.5. Niven, P. (2002). Balanced Scorecard Maximizing Performance and Maintaining Results. New York: Jonh Wiley & Sons, Inc.

4. BSC – LEARNING AND GROWTH PERSPECTIVE • Learning & growth perspective. As enablers to other 3 perspectives (fundamental vehicle). It helps to close the gap to ensure sustainable performance in the future. • Employee skills • 2. Employee satisfactions • 3. Availability of information • 4. Alignment Pal's Sudden Service. (2001 ). Retrieved February 10, 2011, from http://www.baldrige.nist.gov/PDF_files/Pals_Application_Summary.pdf Kaplan , R., & Norton, D. (1993, September-October). Putting the Balanced Scorecard to Work. HARVARD BUSINESS REVIEW , p.5.

5. BSC – INTERNAL BUSINESSS PROCESS PERSPECTIVE • Internal business process. Efficient the process via: • Product development • 2. Production excellence • 3. On time delivery • 4. After sales services Pal's Sudden Service. (2001 ). Retrieved February 10, 2011, from http://www.baldrige.nist.gov/PDF_files/Pals_Application_Summary.pdf Kaplan , R., & Norton, D. (1993, September-October). Putting the Balanced Scorecard to Work. HARVARD BUSINESS REVIEW , p.5.

6. BSC – CUSTOMER PERSPECTIVE • Operation excellence • 2. Product leadership • 3. Customer intimacy (Customer satisfaction, customer loyalty, market share & customer acquisition) Pal's Sudden Service. (2001 ). Retrieved February 10, 2011, from http://www.baldrige.nist.gov/PDF_files/Pals_Application_Summary.pdf Kaplan , R., & Norton, D. (1993, September-October). Putting the Balanced Scorecard to Work. HARVARD BUSINESS REVIEW , p.5.

7. BSC – FINANCIAL PERSPECTIVE • Financial measures. Result focus on bottom-line, indicators: • Profitability • 2. Revenue growth • 3. Economic value added. Pal's Sudden Service. (2001 ). Retrieved February 10, 2011, from http://www.baldrige.nist.gov/PDF_files/Pals_Application_Summary.pdf Kaplan , R., & Norton, D. (1993, September-October). Putting the Balanced Scorecard to Work. HARVARD BUSINESS REVIEW , p.5.

8. Strategy alignment with 3 primary stakeholders: • Shareholders, Customers and Employees • Both financial and non-financial criteria • Allows review the past financial situation in an ongoing consistent manner. • Engagement of employee voice through learning and growth able to assess whether any strategic action implemented will match desired outcome • Acts as an excellent education tool for staff Advantages Pal's Sudden Service. (2001 ). Retrieved February 10, 2011, from http://www.baldrige.nist.gov/PDF_files/Pals_Application_Summary.pdf Kaplan , R., & Norton, D. (1993, September-October). Putting the Balanced Scorecard to Work. HARVARD BUSINESS REVIEW , p.5.

9. The concentration on three primary stakeholders has the converse effect of neglecting other stakeholder • Requires a long thought process to develop • Trade-offs between different measures is ignored even when in direct confliction • Should not be taken as full comprehensive delineation of the company Disadvantages Pal's Sudden Service. (2001 ). Retrieved February 10, 2011, from http://www.baldrige.nist.gov/PDF_files/Pals_Application_Summary.pdf Kaplan , R., & Norton, D. (1993, September-October). Putting the Balanced Scorecard to Work. HARVARD BUSINESS REVIEW , p.5.

10. Primary stakeholder must be clearly recognised • Empowerment to the team members (flexible and freedom to achieve strategic priorities) Mitigating the negative effects Pal's Sudden Service. (2001 ). Retrieved February 10, 2011, from http://www.baldrige.nist.gov/PDF_files/Pals_Application_Summary.pdf Kaplan , R., & Norton, D. (1993, September-October). Putting the Balanced Scorecard to Work. HARVARD BUSINESS REVIEW , p.5.

11. Hoshinfocuses on selecting and monitoring the right measure to drive change (an “ends justifying the means” approach) BSC centered primarily on the capability of company’s process for delivering value to customer (means contributing toward end) Flexibility BSC strongly emphasized the goal must to be achieved (does not provide clearly approach of how) Hoshin does with short (annual)/middle (3-5y.) and long-term plan (5-10y.) Change BSC does not cover review and monitoring system (closed-loop) to modify plan (change) Hoshin emphasized PDCA cycle. Hoshin deployment method sometimes neither delayed nor allowed the process(review) Communication Hoshin integrates people together from top-down and bottom-up deployment. Although, it is difficult to achieve the involvement of everyone. Comparison of other deployment methodHoshin & BSC (Main differences) Witcher, B.J. and Butterworth, R. (2001), “Hoshin kanri: policy management in Japanese-owned UK subsidiaries”, Journal of Management Studies, Vol. 38 No. 5, pp. 651-74. Yang, T.M. and Su, C. T., (2007), “ Application of hoshin kanri for productivity improvement in a semiconductor manufacturing company.”, Journal of Manufacturing Technology Management, Vol. 18 (6), pp.761-775 Witcher, B., (2002), ”Hoshin kanri: a study of practice in the UK”, Managerial Auditing Journal, Vol. 17(7), pp.390-396

12. The research Market is not yet concluded , but the correct approach seems to be to open the distribution channels to the European market. • Better negotiation strategy in terms of sourcing to foster competitive advantages. Assumptions…

13. The vision statement provides a word picture of what the organization intends ultimately to become in next 5,10,or 15 years. By not having appropriate vision statement, organization might has a problem to guide the actions of employees which result lack direction and eventually unable to take benefits from any strategy that put on place. Thus there are several key points in order to create effective vision: ViSiON(Direction) (Niven, 2002),

14. · Concise (should be simple, powerful and compiling) · Appeals to all stakeholders · Consistent to mission and values · Verifiable · Feasible · Inspirational ViSiONKey points (Niven, 2002),

15. The VISION To be the preferred boats provider in our market(s) achieving a large market share by providing: Exceptional value-Safe and Innovative products Customer Service Post-sale A fun, positive and profitable experience for all stakeholders WaveRider’s Strategic Objectives Strategy 6 (Key Words) Customers Delightment Safety Innovation (R&D) Continuous Improvement Service Pal's Sudden Service. (2001 ). Retrieved February 10, 2011, from http://www.baldrige.nist.gov/PDF_files/Pals_Application_Summary.pdf Kaplan , R., & Norton, D. (1993, September-October). Putting the Balanced Scorecard to Work. HARVARD BUSINESS REVIEW , p.5.

16. Wave Rider - BSC Financial VISION L & G Customer IB Process

17. Learning & Growth Deployment

18. Internal Business Process Deployment

19. Customer Deployment

20. Financial Deployment

21. Cause & Effect

22. CONCLUSIONS BSC provides a linkage between strategy and vision through four perspectives to achieve organization shared objectives. Yet, it has potential issues in terms of in review mechanism during deployment phase. Therefore, it requires adjustment to maximize its benefits.

23. Reference Witcher, B.J. and Butterworth, R. (2001), “Hoshin kanri: policy management in Japanese-owned UK subsidiaries”, Journal of Management Studies, Vol. 38 No. 5, pp. 651-74. Yang, T.M. and Su, C. T., (2007), “ Application of hoshin kanri for productivity improvement in a semiconductor manufacturing company.”, Journal of Manufacturing Technology Management, Vol. 18 (6), pp.761-775 Witcher, B., (2002), ”Hoshin kanri: a study of practice in the UK”, Managerial Auditing Journal, Vol. 17(7), pp.390-396 Norreklit H. (2000), The balance on the balanced scorecard - a critical analysis of some of its assumptions, Management Accounting Research, 11, pp. 65–88.  Kaplan R S and Norton D P (1996) “Balanced Scorecard: Translating Strategy into Action” Harvard Business School Press  Marquardt, E.P., (1997), "Aligning Strategy and Performance with the Balances Scorecard," ACA Journal: 18-27. Yeung A. and B. Berman. (1997) Adding value through human resources: Reorienting human resource measurement to drive business performance. Human Resource Management 36 (3): 321 Nair, M. (2004). Essentials of balanced scorecard. Hoboken, N.J: John Wiley & Sons.  Andon, P., Baxter J., Mahama H. (2005). ‘The Balanced Scorecard: Slogans, Seduction, And State Of Play’. Australian Accounting Review, Vol.15, No.1, pp.29-38.  Olve, N. G., Petri, C. J., Roy, J., and Roy, S. (2004). Twelve years later: Understanding and realizing the value of balanced scorecards. Ivey Business Journal online.[http://www.qa.au.edu/page2/research/BSC12YearsLater.pdf]