ACC203 Assignment: Evaluating Qantas's Balanced Scorecard Performance

This assignment analyzes Qantas, a major Australian airline, focusing on its critical success factors (CSFs) and key performance indicators (KPIs). The report includes a strategy map aligning with Qantas's long-term objectives and a detailed Balanced Scorecard. The Balanced Scorecard evaluates performance across various categories, including profitability, customer satisfaction, and operational safety, providing actual results against target outcomes. The analysis covers aspects such as return on invested capital, customer satisfaction, employee engagement, and innovation. The report also discusses the importance of the Balanced Scorecard as a strategic and controlling tool, highlighting its role in information flow, decision-making, and alignment across different departments. Overall, the assignment provides a comprehensive overview of Qantas's strategic performance and its use of the Balanced Scorecard for effective management.

Corporate Accounting
Date : 28/09/2018

Qantas
 Quatas : One of the largest Airline service company in Australia.
 Largest Fleet size and international flights
 More than 26000 employees
 Listed on Australian Stock Exchange

Critical Success Factors
Some of the key and critical success factors of the company include:
 Highly trained and developed workforce
 Non stop travels of the flights and cutting down on time horizon
 Choice of the best possible routes making the flights services cheap and effective
 Focus on flight and on board services and promotions
 Focus on the senior management and their roles and responsibilities

Strategy Map
Defined Target
Segment
Measure of completeness Time frame
to achieve it
Status or Progress report
Operational
performance of
segment
Return on Invested capital >10% FY18-FY20 FY18 Return on Invested capital > 10% for
all segments
Customer Constant improvement in Net Promoter
Share
FY18-FY20 Maintain NPS at premium against business
rivals
People Improvement in employee engagement FY18-FY20 80% in FY18
Transformation $400 million per annum gross income FY18-FY20 $ 463 million in FY18
Innovation Identification of newer products or
services to develop them, introduce
new processes to optimize capacity
FY18-FY20 New route from Perth to London, Launch of
Premier Everyday Credit card, Qantas
distribution program, etc.

Balance Scorecard
 Balanced Scorecard: Widely accepted approach
 Focus on various areas at once like learning and development, growth, customer
development, user eccentricity and employee development
 Fix the responsibility for each manager and thereby regular tracking
 Leads to flow down of better quality of information and thus quick decision making
 Alignment of different divisions and departments
 Effective strategic and controlling tool

Balance Scorecard for Qantas
Strategic
Category/Objective
Measuring scale Scorecard
Target
(Outcome
Range)
Actual Result
Profitability or net income of
the group
PBT 50 %
(0-100%)
Achievement is Above the set
target
Margin of profit earned from
the Domestic market in
Australia
Cumulative domestic income of Qantas Domestic
and JETSTAR profit margin: EBIT
10%
(0-15%)
Achievement is Above the set
target
Safety of People and
Operational Safety
Measures taken for people’s safety
Assessment related to operational safety on board
the flights
15%
(0-22.5%)
Target Partially achieved
Target Achieved
Customer Punctuality of flights, Coverage and frequency in
the domestic market, Net Promoter Share
15%
(0-22.5%)
Partial Achievement of Target.
Growth of business, JETSTAR Japan underlying PBT and Qantas 10% Achievement is Above the set

END
Thank you