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Balanced Scorecard
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Balanced Scorecard
Kaplan and Norton developed a balanced scorecard model that involves defining
strategic goals across four perspectives. The models rely on financial, customer, Internal
processes, and learning & growth. Ford company utilizes these perspectives to align itself
with measurable outcomes in its quest to improve performance and competitiveness. This
ensures that the company balances its financial goals with non-financial factors that influence
long-term success.
Financial Perspective
The financial perspective focuses on attaining financial goals that will improve
shareholder value. Ford can embrace and monitor its return on investment, cost control,
revenue growth, and profitability. With these into account, the company will have a chance to
boost its sales by diversifying its investment in its electric vehicle (EV) (Dess et al., 2024).
This will ensure that the company generates maximum revenue both in the local and global
markets. The company needs to employ key performance indicators (KPIs) to track its
financial growth. This financial growth is essential to support future innovation and maintain
a competitive edge in the automotive industry.
Customer Perspective
The customer perspective focuses on providing superior value to customers by
ensuring the products and services offered exceed the customers' expectations. Ford utilizes
this viewpoint by putting its focus on customer satisfaction, loyalty, and brand perception.
The company is planning to boost its customer satisfaction scores and customer retention
rates. Also, there are plans to diversify its customer base in emerging markets while
maintaining strong relationships with loyal customers in established markets.
Internal Processes Perspective
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The internal processes notion stresses the importance of efficient and innovative
processes within a firm’s operations. Ford wants to improve its manufacturing efficiency,
supply chain management, and product development. The company plans to improve its
manufacturing processes by implementing system automation and using robots in production
lines aiming at reducing waste (Dess et al., 2024). This would greatly reduce the time to
manufacture and market products, improve the quality of the products, and maintain supply
chain efficiency. This is critical for the company to maintain its long-term competitiveness in
the market.
Learning and Growth Perspective
Learning and growth emphasize the need for employee development, organizational
culture, and technology adoption to support endless improvement. Ford uses this perspective
to focus on improving its culture of innovation. The company has found a gap in the
automotive industry since it faces technological disruption with electric and autonomous
vehicles. The company may employ metrics such as undertaking employee Engagement
Scores, Training and Development Hours, and Employee Retention Rates. This perspective is
vital for building a strong workforce capable of supporting the company’s transformation
agenda and maintaining a competitive advantage in a rapidly changing market.
There is a need for the Ford company to use a balanced scorecard model to ensure it
aligns its strategic objectives on the right trajectory. The goals are aligned across financial
performance, customer satisfaction, internal processes, and organizational learning. Each
perspective plays an important role that drives the company to achieve its goal as the global
leader in the automotive industry by introducing electric vehicles, automation, and new
market dynamics.
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References
Dess, G., McNamara, G., Eisner, A., & Sauerwald, S. (2024). Strategic management: Text
and cases. Google Books.
https://books.google.com/books/about/Strategic_Management.html?
id=R997zwEACAAJ
