BSC adoption for N&S Ltd Contents.

BSC adoption for N&S Ltd
Contents
Introduction...........................................................................................................................................1
Background........................................................................................................................................1
Balance Score Cards...........................................................................................................................2
BSC Implementation..........................................................................................................................3
Business strategy Considerations in BSC...............................................................................................4
Benefits of BSC..................................................................................................................................4
BSC Development for N&S Ltd...............................................................................................................5
Recommendations.................................................................................................................................6
Conclusions............................................................................................................................................9
Bibliography.........................................................................................................................................10
Introduction
Background
N&S Ltd. Is a manufacturer of car types from Victoria and has a market
capital of $3bn. It has 300 people working in the organization. The
company has been struggling to keep up with its expansion because of
some problems. To identify the problems faced by the company, an
internal survey was conducted. It was found that 95% of the company
employees lacked strategic insight. A management consultant was hired
for services who recommended adoption of BSC (Balanced Score Card) if
the company wanted to improve upon its strategic performance. With
BSC, the company could document its strategy by identifying its tangible
components which would make it easier for its employees to understand
the strategic goals of the organization and work towards them.
This report guides the company through the adoption of BSC model and
contains analysis of the model as well as of the company from the four
perspectives defined in the model. Based on this analysis, certain
recommendations have been made for improvement at the end. It
contains details of strategic objectives of N&S, costs of BSC, strategic
considerations of the business and the steps to apply BSC.

With adoption of this model, the company can expect to gain more
transparency into its strategic processes which would help its staff in
understanding business objectives as well as their role in achieving them.
BSC model explored an organizational strategy from four perspectives
including customer, financial, internal, learning and development. The
report presents recommendations with strategic targets defined for
workforce to follow (Garengo, 2012).
Balance Score Cards
BSC is a strategic tool which was developed by two business strategists
including Robert Kaplan and David Norton with an aim to measure the
organizational performance in terms of its capability to achieve its
strategic vision through exploration of its intangible components like
processes. The model uses performance indicators that quantify the
intangible benefits to enable this measurement. First, the vision and
mission of a company are identified and then their strategy is reviewed
from four perspectives including customer, financial, internal business,
and learning & growth. The content that comes under this evaluation from
each perspectives have been explained below:
Financial Perspective: This perspective of BSC model evaluates an
organization on its attractiveness to investors. The operational
performance and sustainability are evaluated using industry benchmarks
such as market share and profits. Financial performance is already used in
practice for measurement of the organizational performance but BSC goes
into depth so that investors can decided on if the company is good
enough to invest and would get them profits desired by giving them the
evaluation of the current business scenario (Niven, 2006).
Customer Perspective: In this perspective of BSC model, the market
requirements are explored and quantified with targets to achieve. These
could be related to products or services such as measures of pricing
strategy or product quality. When a company is able to achieve these
targets, it looks more desirable even to investors.
Internal Processes: Any company runs on its internal processes that
have to be efficient enough to make the business perform well enough to

achieve its strategic objectives. If the company needs to achieve its
objectives, its processes should be aligned to the needs of its stakeholders
including customers, employees, and shareholders. This part of BSC
explored internal business processes and their potential to bring this
alignment.
Learning and growth: Learning and growth of the employees of the
company can ensure long term sustainability in an organization as the
workforce is responsible for executing all activities planned. A workforce
must be agile so as to develop the capability to adapt as per the changing
market dynamics to keep the business sustainable by keeping
improvement. This BSC perspective can help company identify
appropriate growth strategy to achieve competitive advantage and also
sustain it (Niven, 2005).
BSC Implementation
For implementation of BSC model, the components of the different
perspectives of BSC have to be identified and then connected to enable
cohesion. Each perspective would include records of business objectives,
performance indicators, financial or non-financial criteria, internal and
external perspectives. The first step to its implementation is identification
of the broad strategic goals of the organization that could be reflected by
vision and mission of the company. Once these objectives are identified,
performance indicators including critical success factors for each
objectives are identified (Kaplan & , 2006).
The expectations of the stakeholders considering each business objective
are then explored and the critical success factors are matched to them.
These factors are the indicators of organizational performance and thus,
can be used for monitoring its performance. This usually requires an
interaction between the company and its stakeholders so that their needs
and expectations can be understood. The stakeholders include the middle
and senior level management of the organization. This exercise helps
company connect the personal objectives of managers with the business
objectives of the organization so as to help them have a higher motivation
to fulfil strategic objectives of the organization. Personal goals can be set
for them accordingly and key performance indicators can be defined
(Malina & Selto, 2001).

Business strategy Considerations in BSC
The BSC model can help organization measure its performance from the
four perspectives. A number of strategic considerations are needed when
doing this in each category. For instance, the learning and growth
perspective of the model needs the staff to have knowledge gained
through training. More considerations could be training needs of
employees, job satisfaction in staff and the staff turnover. The
performance metrics can be defined for the objectives. For instance,
considering the job satisfaction as the factor, a metric could have the
target like a minimum rating by employees. Companies can take
measurement of these ranks quarterly. Financial perspective should have
measure of how funds are invested effectively to achieve business
objectives (Ram, 2019). Key considerations in this perspectives can be
cash flow and returns on investment.
Strategic considerations for internal business processes could be
automation, functional activity or process alignment. For the customer
perspectives, considerations could be for sales, positioning in the
consumers mind, customer satisfaction, customer retention, brand
perceptions, customer trust, and product reliability. The objective would
remain ensuring that customers perceive the company, its products and
services in a positive manner so that trust can be developed in them and
loyalty can be gained.
Benefits of BSC
A number of benefits that BSC brings to the company include:
Improved planning: The company can do better planning as BSC helps
it identify key strategic objectives and thus, define the actions needed to
achieve them. With the plan better aligned to the strategic objectives the
company can improve its performance.
Improved Communication: As BSC provides an opportunities to go deep
into the perspectives of customers and of the internal processes, both