Добавил:

dipplus2013 dipplus.com.ua Написание контрольных, курсовых, дипломных работ, выполнение задач, тестов, бизнес-планов Опубликованный материал нарушает ваши авторские права? Сообщите нам.

Вуз:

Киевский национальный экономический университет им. В. Гетьмана

Предмет:

[НЕСОРТИРОВАННОЕ]

Файл:

Pindelski_Competitive_Strategies

.pdf

Скачиваний:

Добавлен:

08.02.2020

Размер:

3.19 Mб

Скачать

☆

<<< < Предыдущая 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 2223 / 2423 24 > Следующая >>>

The Financial perspective

This perspective relates to the revenue growth and structure, including growth rate of sales of individual segments; the revenue from new products, services and customers; share of sales to target customers; sales volume; revenue from new applications; product and customer profitability; percentage of unprofitable customers. The financial perspective allows using easy to summarize economic effects of future activities.

The Customer Perspective

Client's perspective measures are not as precise as financial measures, therefore causing many controversies. Management team of a company determines the customers and market segments, in which the organization will begin to compete and will identify measures necessary to assess their effectiveness, such as: the size of market shares, activity and effectiveness in maintaining customers, customer acquisition, customer satisfaction or profitability of customer collaboration.

Internal Processes Perspective

From this perspective’s point of view, the management identifies key internal processes, which an organization must take into account. This can be for example: percentage of new product sales in total sales, percentage of sales of specific and expensive products, the number of new products on the market, production process opportunity, utilization of production capacity, development and creation time of new generation of products, number of returns of already purchased products, number of complaints and claims for services and many others, which depend on the nature of organization (manufacturing or service business). Focusing on internal processes helps a company to create value that will attract and retain customers of a target market segment, as well as it will satisfy stakeholders’ expectations in regards to financial results.

The Growth Perspective.

The growth perspective is focused on identification of resources that an organization needs to expand in order to create a long-term growth and processes improvement. Organization's ability to learn and develop is rooted in three main sources: people, systems and procedures. Among development perspective measures we can find:

220

employee satisfaction, employee turnover, employee productivity, skills or employee commitment.67

Fig.25 A sample Balanced Scorecard (BSC) for IT industry businesses.

Units of

Desired

Next year plan (quarters)

Perspective

Projects

Objectives

Measures

direction of

measure

III

changes

Entering new

market

segments

(commercial

companies)

Financial

and

Acquiring

An increase

diversificatio

new

Sales in

Number of

in the number

n of

customers

commercial

acquired new

of customers

customers

(number of

business

customers

in new

portfolio

new

segments

(including

customers)

sales

improvement

commercial

business)

% of

customers

An increase in

satisfied from

Customers

the output

% of satisfied

the total

level at the

Marketing and

customers -

number of

Improvement

end of

sales support

as the result

company's

in customer

previous year

70%

75%

(indirect -

of customer

customers

satisfaction

(annual

brand building)

satisfaction

(summary of

summary) in

survey

study results

the relevant

performed

quarter

every 6

months)

Processes

Building

employee task

Decrease

maturity (and

from last

indirectly

Product

year's

changing

Improving

return as a

% / Quarter

baseline, by

10%

attitudes -

quality

percentage in

appropriate %

Internal

building

sales

value in the

employee-

corresponding

oriented culture

quarter

of success)

Development

Increase in

Changing

number of

Number of

attitudes -

Improvement

new ideas,

already

building

enhancing

implemented,

Increase

employee-

innovations

new

engagement

oriented culture

and their

occupational

to succeed

implementati

ideas

on.

Source: author’s own elaboration, unpublished lecture materials.

67 B. R. Kuc, op. cit., p. 235-236.

221

Balanced Scorecard is a tool that allows an organization to clearly set business objectives that are both, related to financial, as well as to many other aspects of business functioning. Based on the scorecard information, we can draw conclusions concerning the way we can create value for current and future customers by investing in human resources development, as well as systems and internal processes. We can also manage all this, while still following certain financial perspective limitations.

The financial and non-financial measures within the Balanced Scorecard should be emphasized among organization’s employees in order to have full knowledge that their decisions and actions have consequences for the entire organization and occurring processes, and eventually on its market success. It is very important that the chosen measures were a true reflection of a mission and strategy of the business. Only such approach will allow using BSC effectively, which in addition to quantifiable measures (objectives), also allows capturing difficult to measure indicators of company's future success.

Balanced Scorecard gives a significant support to an organization during strategy implementation, particularly during:

•refinement of vision, strategy and strategic objectives,

•clarification of objectives and strategic measures;

•planning, goal setting and strategic initiatives taking;

•improving systems for strategy implementation monitoring and organization's learning processes monitoring.

Refinement of Vision and Strategy

The process of creating the scorecard starts with the senior management's meeting and transformation of the adopted business strategy into specific strategic objectives. Next, they set the objectives for the financial and customer perspective. After establishing the financial and customer perspectives, the company identifies the objectives and measures of the internal processes. This particular objectives’ setting approach allows successful achievement of customer and owner's satisfaction. All of a sudden, new, previously undetected processes may appear, hence it is important to immediately akcnowledge and often name and describe them using the objectives and measures given, since all of the

222

new processes affect the implementation of the adopted strategy. The final stage is to set goals according to the growth perspective. These new objectives allow us to make sense of activities (training, technology and systems investments, inter-organizational procedure improvements), which translate into company's long-term survival on the market.

Clarification of objectives and strategic measures;

Usually there are activities throughout the entire organization that present to all employees the strategic objectives and adopted measures of the Balanced Scorecard. Presentations are delivered via newsletters, bulletin boards, video, e-mails or the intranet (internal network). The essence of the presentation is to build employee awareness that achieving goals leads to achieving success within the implementation process of the entire strategy. In some organizations we come across situations where there is a subdivision of measures and goals: strategic and operational. Such division shows employees how objective and operational action, often at the lowest level of organization, are linked to the strategic goal, and observing such connection helps employees realize their impact on organization's success. It also allows an even better use of BSC to control strategic objectives.

Planning, goal setting and taking strategic initiatives

Certain strategic objectives defined by the management, should be included in the Balanced Scorecard (usually with a several years perspective), which will contribute to organization’s development. Identification of strategic objectives also allows their fuller integration with the budget creating process, which is then more calculated and optimally distributed. Very often, the method for calculating of so-called milestones is used. These milestones are the exact moments of short-term goals achievement, after which an organization is gradually entering the stages of strategy implementation.

Strategy Milestones – Definition

Strategy milestones are defined in time and scope, and are the measurable partial goals forming achievement of the entire strategy. Only after crossing a milestone, an organization can gradually fall into successive stages of strategy implementation.

223

Improving control systems for strategy implementation monitoring and

organization's learning processes monitoring.

The process of improving the monitoring system for strategy implementation creates organization's capacity to learn at the highest level of management, as well as to perform relevant analyzes and draw appropriate conclusions, which may force a change in already selected strategy. The Balanced Scorecard enables companies to obtain feedback on the activity of adopted strategy and its objectives.

From the management point of view, a balanced scorecard is an extremely important tool in organization's control process, as it is impossible to effectively manage the process, if there is no other way to measure results of its activities. Company's approach to measuring results and processes, very strongly influences the behavior of its employees and external environment. Many companies, as a main direction of the development, choose operation strategies related to customer relationship management, critical skills management and organization's developmental capabilities management. Balanced Scorecard offers measures that allow the assessment of company's effectiveness and efficiency, indicating the degree of conformity of individual elements of an organization, such as: customers, processes, employees and internal systems.

224

Questions and discussions:

1.What does control mean ?

2.How Control may influence the strategy, competitiveness and company’s performance ?

3.What types of control do you know ?

4.What and how should be controlled ?

5.What do you know about the Balanced Scorecard ?

6.Do the employees like the control ? Could you explain resons ?

7.How to deal with those who dislike control ?

Case study 22

IMMOQEE

IMMOQEE is an international company that deals with human resources management, staff outsourcing and gives overall support to managers at work. In its sales department, in the telemarketing organizational unit, a control system was constructed. The subject of control is the quality of calls carried out by employees. Because of a large number of employees and interviews, it was necessary to introduce a multi-level control, which representatives were divided into level I controller, level II controller and a level III controller.

Level III controller:

The job of the 3rd level controller is to work with telemarketing representatives, coordination and control of their activities. Control of telemarketers’ performance is carried out while they work, through ongoing call monitoring and verification of data correctness recorded in the system. Control is performed in a random fashion, while maintaining a certain frequency, which raises its effectiveness. The duty of a level III controller comes down to operational control and it does not fall within the scope of strategic control.

Level II controller

225

A level II controller coordinates and verifies activities of a level III controller. Level II controllers verify work performed by level III controllers, how they manage the employees assign to them, and also, how well and proper is the control carried out by them. Another part of work performed by level II controllers is monitoring the quality of calls performed by telemarketers. Mainly how they perform the calls. It is verified by listening to recorded calls and checking the regularity of notes entered by employees. For this purpose controllers use the internal confrontation methods, economic comparison methods, statistical analysis, as well as the strategic control. The control on the Iind level is not formalized thus there are some hints for controllers as – charts and questionnaires that help in ordering the control activities. Most of the control activities are not described well however.

Level I controller

Level I controller is to control both, level II and III controllers, as well as compliance of measures taken with approved sales plan. The position of level I controller is the highest in the hierarchy; however, it is not strictly related to control, but mainly to the achievement of company's objectives. The tasks performed by a level I controller include action planning across an entire department and control of its employees, level II controllers, level III controllers, telemarketers, granting premiums and giving raises. The Ist level control depends on the controller as a person and her/his attitude to control activities. There are some guidances but most of the activities are controller’s dependant. There was a plan to formalize the Ist level control but most of the activites remain unformalized.

Fig.26 Diagram of control of specific stages of control

Level I controller:

-financial control -comparative control -operational control -accounting control

Level II controller:

-internal confrontation -comparison -economic calculation -statistical analysis

Level III controller:

-comparison -quantitative -accounting control -qualitative -Human Resources control -randomized

Telemarketers	226

Source: author’s own elaboration based on IMMOQEE materials and reports

Objectives of control performed at IMMOQEE

Prevention of irregularities. Due to the importance of this objective, its implementation is carried out by controllers of every level. It should be noted that, depending on control activities hierarchy level, they are all carried out in a different manner. The level III controller constantly monitors telemarketers’ performance, reviews their recorded conversations, and checks the validity of data entered into the system. The level II controller also verifies the work carried out by the telemarketers. The type of control carried out by the level I controller comes down to the conformity assessment of all undertaken activities with company strategy.

Informative. A company using control methods gains relevant information concerning the degree of correctly carried out calls and correctness of data entered into the system. With this information, it is possible to implement a sales plan together with a business strategy plan.

Instructive. The implementation of this objective goes through all of the control stages. Because an indication of correct work methods of controlled entities affects the implementation of remaining objectives it is important to have an ongoing control over telemarketers’ calls. This can be done through listening to recorded calls, verifying data entered into the system and correcting detected errors.

Stimulative. Level I and II controllers are responsible for implementation of this objective. Employees, who reach specific goals and positively pass work verification during company inspection (control), receive financial bonuses for performing quality work. Control is seen as an integral part of the employee bonus assignment process.

Preventative. Telemarketers, who are aware of the control process, pay more attention to their job performance and make fewer errors. The correctness of their work performance gradually increases.

Suggested corrective actions

227

Corrective actions suggested for the IMMOQEE company, can be divided into three group types:

•Primary type actionsvery urgent and highly influential.

This group includes activities used for correction of significant deviations from the standards, which may have an impact on a major decline in the quality of services. They are designed to correct significant deviations from the standards, the effect of which may be a significant decline in the quality of offered services. As an example here, we can think of a situation in which a telemarketer, during a call with a customer, gives out incorrect information, that is misleading to the potential client. The customer will be dissatisfied and may submit a complaint claim, and even stop to cooperate with the company, which will be directly translated into drop in revenue. In this situation, the controller must ensure that calls are carried out in the correct and professional way and that the telemarketers always give out accurate and reliable information. Extremely important here are actions which are used to clarify conflict customer situations, to propose a solution to the problem and to cooperate with the telemarketers in order to improve their work performance.

•Secondary type actions - less urgent and highly influential.

The secondary type actions significantly affect the quality of services, but are performed less urgently. For example, a company, in addition to their standard product, develops a new solution, which is very strongly promoted via online sales channels. However, telemarketing representatives do not mention anything about it to their customers. The company spends a lot of funds on promoting the product, which should be supported by the telephone sales representatives as well. Therefore, actions should be aimed towards providing employees with new product information an putting significant pressure on effective promotion and customer education about the new product.

•Tertiary type actions - slightly urgent and slightly influential.

The third type can be described as activities minimally affecting an organization, with fairly low level of priority. An example may be a situation where telemarketers offer a product via phone and back it up with an email with the product offer. These offers, rather than in color, are sent to clients as black and white presentations. Such actions have little impact on the effectiveness of sales activities, however, they should be considered as a deviation from accepted standards. In this situation, the

228

corrective action is limited to informing employees to verify the accuracy of sent out

offers.

Discussion questions:

1.What should be the new system of control in the IMMOQEE company?

2.How to ensure control disclosure and transparency?

3.How to apply control test tools?

4.In which direction should the IMMOQEE company control develop?