Buy essay on Strategic Plan and Balanced Scorecard

Balanced scorecard considered to be an effective tool of organizational control, because it helps to control the execution of activities by the company’s staff. (Olve, 1999)
Financial perspective
Let’s start the balanced scorecard analysis that was created for the boutique “Beautiful Home & Me” with its financial perspective description.
Small fashion boutique will not have the shareholders system; there will be only one owner. But, needless to say, an accurate financial analysis is always useful despite of the size of organization. Small companies also have to manage their financial policy in a professional way. Among the major financial analysis elements for a small company like the “Beautiful Home & Me” the following could be named: growth in sales revenue, cash flow, profitability, and economic value added.
Taking these elements into account, the three strategic objectives in the financial area that important for the small fashion business could be defined:
Revenue growth:
The metric for this objective is the percentage of revenue index increase. The target for this objective is to increase revenue by 10% for each of the next 3 years.
Market share:
The metric for this objective is the percentage of market share. The target for this objective is to increase market share by 5% for each of the next 3 years.
Operating cost management:
The metric is operational expenditure index.
The target is to decrease operational expenditures by 10% for the next year.
Customer perspective
In my opinion, a fashion boutique administration should pay a lot of their attention to the customer scorecard area analysis. Customers’ attitude and satisfaction are vital for shop’s growth and survival.
The customer area analysis should be focused on various groups of customers and their perception of the shop; customer satisfaction; new products and services, etc.
The mission of the boutique “Beautiful Home & Me” is to meet needs of its customers and attracting them to the company’s products and services through the creation of the “place to be” atmosphere. The three major objectives in the customer area for the “Beautiful Home & Me” are:
Customer satisfaction and loyalty
The metrics are: Customer satisfaction index and repeat purchases.
The target is to increase level of the customer satisfaction and loyalty by 10% for the next 3 years.
New customer acquisition
The metrics are: New customer acquisitions (the number of new customers)
The target is to increase level the number of new customers 10% for the next 3 years.
Efficiency
The metrics for efficiency objective are: response time, reliability, on time deliveries, number of complaints, and returned orders.
The target is to improve efficiency overall, to decrease the number of complaints and returned orders as much as possible.
Internal perspective
In order to assess the overall performance of the business, the quality of people and internal processes that may be improved, the business owner of the fashion boutique should use an internal perspective of the balanced scorecard approach. I should remind that the vision of our company focuses on the high quality of its products and customer service.
The three most crucial objectives of the internal perspective for the “Beautiful Home & Me” are:
Motivated workforce
The metric is: improvements in staff’s morale (immeasurable in figures, it’s just the shop’s owner assessment)
The target is to increase the level of motivation among the shop’s staff.
Service excellence
The metrics are: efficiency improvements and increased sales.
The target is to increase the overall level of customers service excellence.
Quality of shops products
The metric is: reduced number of unsold fashion and design items.
The target is to decrease the number of unsold fashion and design items as much as possible and to improve the choice and range of offered items in order to satisfy the customers more effectively.
Learning and Growth (Employee) Perspective
This aspect of the balanced scorecard approach is the substantial factor for the success of any organization. The reason is that it provides the great opportunity to find out the ways or improvement and creating value.
The following elements should be researched within this perspective: employee satisfaction, employee turnover, organizational culture, and others.
The objectives for the innovation and learning perspective are:
Continuous improvement
It’s difficult to define an appropriate metric for this objective, but, for instance, a number of strategic skills learned can be named. It’s a total and constant
The target is a total and constant improvement of every element of the organization.
HR development
The metrics are: number of employee suggestions and amount of training.
The target is to increase the amount of training opportunities for shop’s staff by 30% next year.
Service diversification
The metric is percentage of sales from the new boutique’s service (online sales).
The target is to obtain the additional 10 percent of the new customers via internet sales next year.
If the “Beautiful Home & Me” boutique will start to use a balanced scorecard approach, it will help its owner “to improve internal processes, to motivate employees, to increase the customer satisfaction and also to increase financial usage.“ (Olve, 1999)