For ariannna Rimes

Module 2 - Case

BSC Flexibility & the Customer Perspective

In the last module we looked at the Balanced Scorecard and how it is implemented from more of a purist’s approach and just touched on the flexibility of the tool. In this module, we are going to look at the BSC from more of an adaptive approach. That is to say, how adaptable is this tool given the wide variety of organizations out there in the world.

In this assignment you are asked to study the required readings and to read the following case study:

Basu, R., Little, C., Millard, C., (2009). Case Study: A fresh approach of the Balanced Scorecard in the Heathrow Terminal 5 project. Measuring Business Excellence. 13(4). 22-33. Retrieved from: http://www.perf-ex.co.uk/wp-content/uploads/2012/04/T5-case-study-MBE-papaer.pdf

After reading this article, write an essay in which you compare and contrast the balanced scorecard utilized by the British Airport Authority (BAA) at Heathrow Airport’s Terminal 5 project with the standard quadrants typically applied in a traditional BSC approach (financial focus, Internal focus, Learning and Growth focus, and Customer focus). That is to say, the Terminal 5 project was a large, public construction project using private contractors. Yet, the BSC approach is also applied to the manufacturing sector, health care sector, and is applied in both private and public organizations. So you'll want to consider how the T5 project adapted the BSC approach to fit the prevailing circumstances to help formulate your arguments.

Assignment Expectations

In formulating your essay you need to discuss to what degree the evidence suggests the balanced scorecard approach is amenable to most organizations.

Introduction: In this part of your essay you will need to introduce your topic and provide a very brief overview of the key points you plan to make in your paper.

Analysis: In this section you will present the actual comparison and contrast between BAA’s approach to the Balanced Scorecard and more traditional approaches.

Conclusion: Wrap up your argument with a clear and cogent synopsis of your findings. Do your best to convince your reader (aka, your professor) as to your position.

Additional Instructions: Your essay should be 3 to 4 pages in length (not counting your title page or references). You must include a title page and a list references. APA formatting is preferred. Do not paste in sections of text into your essay. All of your work must be written in your own words. It’s OK to use a short quote now and again, but quotations must be in quotation marks and properly cited. In-text citations should be used anytime you are borrowing somebody else’s ideas, or information. That is to say, if you are borrowing a thought from a publication from F. Leghorn’s article written in 2010, that section of text must be followed with (Leghorn, 2010). Quotations, data, and general ideas (put into your own words) should all be cited.

BSC Flexibility & the Customer Perspective

Modular Learning Outcomes

Upon successful completion of this module, the student will be able to satisfy the following outcomes:

· Case

· Evaluate the application of the Balanced Scorecard approach in an organizational situation.

· SLP

· Write objectives, identify measures, and propose initiatives to improve performance from the customer service perspective.

· TD

· Discuss the application of an integrative approach to organizational improvement using a customer service perspective.

In Module 2, first you will take a look at the four quadrants of the standard format for the Balanced Scorecard, and then you will compare this with an actual application of a present day scorecard. The hope is that you will learn that this is not a rigid, unbending tool but rather, the tool itself is quite flexible and can be applied to many applications in the private and public sectors.

Secondly, you will have an opportunity to apply the BSC in your organization to provide a hands-on opportunity to consider the customer perspective and how organizations consider the customer in planning and evaluating their efforts. More specifically, you are going to see how organizations try to examine themselves from a customer's perspective, relative to how those organizations would like to be seen by them. And you will see that the relationship between how these organizations are seen and how they would like to be seen can improve the allocation of resources so that these organizations can move away from how they are seen toward how they would like to be seen. The graphic highlights where these questions fit into the whole model.

The customer perspective is especially relevant to government, military and not-for profit organizations. Service organizations in general are extremely dependent on their “customers” – recipients of services – and in particular on their largely qualitative assessment of those services.

But everybody needs to consider their customers. For example, to satisfy potential, prospective, or potential customers:

· Retailers might focus on how they allocate shelf space to the products they sell.

· Manufacturers might focus on how they develop new products, the assortment of products they produce, or how they produce those products.

· Wholesalers might focus on their methods of shipping and storage.

· Hospitals might focus on how they schedule patients.

· Not for profit organizations might focus on how they attract and retain donors.

· Banks might focus on how they handle loan requests.

· Restaurants might focus on how they seat their diners (accept or not accept reservations).

· And (maybe the most important of all, at least to some of us), schools and universities need to understand the critical skills that their students need to acquire and to work with students in improving how those skills are explained and cultivated.

In this module, you’ll look at the flexibility of the BSC approach and how assessing customer perspectives and needs make up an important step in implementing a balanced scorecard. You’ll have a chance to draw on courses you’ve taken like MGT 301 (Principles of Management) and MGT 499 (Strategic Management). Material learned in MKT 301 (Principles of Marketing) should be particularly helpful. You’ll also pick up some key new vocabulary for looking at these issues.

BSC Flexibility & the Customer Perspective

Required Reading

Please review the Introduction and Chapters 1-3 of:

MacKay, A., (2004) A practitioners guide to the balanced scorecard: A practitioners’ report based on: Shareholder and stakeholder approaches to strategic performance measurement using the balanced scorecard. Chartered Institute of Management Accountants. Retrieved from: http://www.cimaglobal.com/Documents/Thought_leadership_docs/tech_resrep_a_practitioners_guide_to_the_balanced_scorecard_2005.pdf

Please read Chapter 4 of:

Murby, L., Gould, S., (2005). Effective Performance Management with the Balanced Scorecard: Technical Report. Chartered Institute of Management Accountants. Retrieved from: http://www.cimaglobal.com/Documents/Imported Documents/Tech_rept_Effective_Performance_ Mgt_with_Balanced_Scd_July_2005.pdf

The case assignment article can be found at:

Basu, R., Little, C., Millard, C., ( 2009). Case Study: A fresh approach of the Balanced Scorecard in the Heathrow Terminal 5 project. Measuring Business Excellence. 13(4). 22-33. Retrieved from: http://www.perf-ex.co.uk/wp-content/uploads/2012/04/T5-case-study-MBE-papaer.pdf

This web article will be helpful for focusing your SLP.

Niven, P. (N.D.) Customer perspective. EPM Review. Retrieved from http://www.epmreview.com/resources/articles/item/85-customer-perspective.html

Optional Reading

Here is a rather detailed optional reading that may help to support your understanding of BSC implementation in various types of organizations:

Rohm, H., (2002). A balancing act. Perform. Retrieved from: http://www.balancedscorecard.org/LinkClick.aspx? fileticket=ph%2b8b3YMoBc%3d&tabid=56