Assume that you work for a large agro-industrial enterprise (N&S Ltd.) that taps rubber latex that it uses to produce car tyres at one of its factories in Victoria. The company has a share capital of £3bn, and employs about 300 staff at the car tyre factory. Compared with similar companies in the sector, the overall performance of the car tyre factory has been poor over the last couple of years. The main issue has been that the strategic picture in the minds of top managers has been different from that of middle-level employees.
A study commissioned by the newly appointed General Manager at the car tyre factory found that 95% of the employees did not understand the organisation’s strategy or business plan. As a result, the decision has been taken by top management to consider the adoption of the Balanced Scorecard (BSC) tool, among other alternatives, with the hope of improving the overall business performance.
As the project manager working for the car tyre factory, you have been invited to advise top management on the following issues with respect to the BSC:
a) Business case for the adoption of a contemporary performance measurement system like the BSC.
b) The different elements of the business strategic plan and how these could be used by top management to drive the business performance of the car tyre factory.
c) How managers at the car tyre factory could develop and implement ‘BSC performance measures’ that are aligned to the organisational strategy of N&S Ltd
Sample Solution
