BUS 475 Week 4 Individual Assignment: Strategic Plan, Part 3: Balanced Scorecard

What to Wear Today; Balanced Scorecard 

Balanced Scorecard

Financial

Objectives Measures Target Initiatives
Become profitable ROI 1 year Create content for site which is useful and free that promotes affiliate marketing.
Develop consistent revenue through cash-flow management Cash flow statement 1 year Strict adherence to billing practices (COD).
Create competitive advantage through pricing and work efficiency Measuring the increase in customer base 1 year Competitive intelligence, watch competitor prices and efficiencies to make sure that What to Wear Today is maintaining market edge..

 

Customer

Objectives Measures Target Initiatives
Create loyal customers Repeat uses of services 2 year Maintain positive market culture through personal interactions with clients.
Individualize product specific to client needs. Repeat use of services 2 year Increase product differentiation through individualization of products.
Provide best customer service to clients Feedback surveys 1 year Continuous customer service development.

 

Process

Objectives Measures Target Initiatives
Create time management efficiency Measure client service times and product turnaround. 1 year Smooth operations practices with enhanced communication to develop understanding of client needs.
Operations streamlining Track work against deadlines 1 year Maintain business with one on one interaction and discover the number of clients to stylist ratios.
Implement standardization of work Measure of work accomplished and productivity as it will apply to future employees. 1 year Human resource development

 

Learning and Growth

Objectives Measures Target Initiatives
Training Program Create skills tests for required learning of new stylists. 1 Year Develop learning environment in which future employees can learn in a comfortable manner.
Develop continuous learning practices Challenge workers with keeping in step with new fashion trends. 1 Year Continuous learning of new trends and fashion developments in order to remain competitive.
Maintain learning of client needs. Client Satisfaction Surveys 2 Years Maintain high level of communications with clients in order to keep informed of their particular fashion needs.

At What to Wear Today, the company derives its mission from its purpose and work ethic.  For this reason the company’s mission states:

It is the mission of What to Wear Today to aid men’s fashion needs and to give them the tools necessary to dress for success in all their endeavors.

As well, the company’s values and mission build a vision of what What to Wear Today intends to achieve.

What to Wear Today believes that our clients should receive that highest quality fashion advise possible and to be as stylish as possible.

The value and mission statement for What to Wear Today determines its balanced scorecard objectives. This scorecard is intended to develop the objectives for the new start-up company What to Wear Today (Pearce & Robinson, 2009).  In this manner the goals were created in order to support initial growth and expansion of the new company.

The financial objectives are intended to develop profit, positive cash-flow, and competitive market advantage. Profit is with any company an important objective. This objective is vital for a variety of reasons such as garnering potential investor interest or for commercial lending. What to Wear Today seeks to maximize profit through low cost product sales and automated affiliate marketing. In this way, the company can attract potential investors and as well be a good risk for lending.

Profitability leads into another financial area known as cash-flow. When cash-flow is positive it creates more working capital. In this way the company physically has more money to use towards projects and bills. This places cash-flow as a priority objective.

Linking these financial objectives together is the idea of competitive advantage. By watching competitors What to Wear Today can analyze threats to its market share or to asses new techniques of the competition.  These financial objectives are important to a new startup company because they create the foundation of future processes.  As well, these objectives steer the company away from potential problems (Pearce & Robinson, 2009).

The most important and vital section of the balanced scorecard is the customer area. These objectives outline the methodology for increasing loyal customers; specialization for client needs; and metrics for increasing customer service. Creating loyal customers is the foundation for the company and through personalized customer service and product quality this can be achieved.  This objective highlights the need for a positive market place in which customers can feel comfortable and relaxed discussing their personal fashion issues. A positive workplace culture allows a free-flow of communication between client and company in which changes can be made without resistance.

The positive market also lends itself to the development of standardized work protocols. What to Wear Today needs create a workforce which treats every customer as a VIP. This need highlights the need for individualizing practices specific to the client’s needs.  This means personal service and understanding the customer’s desires. This objective is achieved through continuous training and human resource management.
The process area of the scorecard includes create time management efficiency, operations streamlining, and standardization of work.  Time management is achieved through smoothing operation’s practices with strong communications.  By developing intensive communication practices, workers will be able to understand the client needs. In order to make this possible a communications plan will need to be designed. By creating a plan the operations streamlining will be achievable.  Communications will also eliminate many errors and miscommunications which can be detrimental to the online environment and market.

These objectives work in conjunction with the objective of developing continuous learning practices. This will mean creating a workplace where learning is central to the job.

The cross training will be achieved through setting of goals and creating an environment of open discussion amongst workers. In this environment, workers will share knowledge and understanding of new trends and fashion developments. This means providing material such as fashion books and reviews from professional designers and providing time for workers to utilize these materials.

The final objective of the continuous learning process will be achieved by understanding the client’s needs. What to Wear Today can continue to increase the knowledge of what is necessary to maintain quality service practices by making sure that the company understands specifically what the client desires and needs.  Simply speaking, it is not enough to make a person look trendy but their need for career success and dating success must also be examined in order to maximize their potential.

The balanced scorecard focuses the mission and values statement into a variety of objectives. These objectives are intended to achieve the highest level of success through many different business oriented goals specific to the company.  By following a balanced scorecard a successful and strong strategic plan can be initiated.

References

Pearce, J. A. II, & Robinson, R. B. (2009). Strategic management: Formulation, implementation, and control (11th ed.). New York, NY: McGraw-Hill.

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