1. Winning Strategy 1: Strategy Deployment Plan
Team B4
Winning Strategy 1:
Strategy Deployment Plan

2. Contents Overview of BSC
Comparison of BSC ,Policy Deployment (Hoshin Kanri) & Business Process Re- Engineering
Overview of organizational Strategy
Recommended Deployment of Strategy using BSC
Summary
Conclusion
References

3. Overview of BSC Created in 1992 by Kaplan and Norton
A holistic method of measuring organizational performance
Complements traditional financial assessment methods
Balances short term activities with long term plans
Functions as a strategy deployment tool

4. BSC Philosophy BSC is based on four (4) premises: Finance Clients
Internal Processes; and
Learning and Growth

5. FINANCIAL PERSPECTIVE
Analysis of financial performance (Reports & Ratios)
Determining company financial health
Addresses issues such as profitability, ROCE, sales figures, liquidity, debt figures, etc.
CLIENTS PERSPECTIVE
Focuses on customers needs
Assesses how well products/services fulfill consumers requirements
Market Segmentation & Customer Surveys

6. INTERNAL PROCESSES
Concerned with operational activities within the organization
Analyzes how efficiently and effectively they function
Aims to ensure they work towards attaining organizational goals
LEARNING AND GROWTH PERSPECTIVE
Examines how much organizational learning occurs within the company
Concerned with employees growth and skills development

7. HOW DOES THE BALANCED SCORE CARD WORK?
Analysis is done on each perspective
The requirements for each are defined
The cause & effect relationship between them is expressed in a strategic map
Here, organizational goals and objectives, defined action plans and performance indicators selected are reflected.
The BSC may be used alongside other strategic development methodologies.

8. Pro’s and Con’s of BSC Pro’s Con’s
Clarifies and translates vision and strategy.
Communicates and link strategic objectives and measures.
Helps plan, set targets and align initiatives.
Enhances strategy feedback and learning in division
Overly abstract Balanced Scorecard goals are easy to reach but hard to quantify
Implementation of the balanced scorecard is time consuming
Balanced Scorecard does not include direct financial analysis of risk management

9. COMPARISON OF BSC, HOSHIN KNARI (POLICY DEPLOYMENT) AND BPR
HOSHIN KANRI
BPR
Performance measurement system & strategy deployment tool
Strategy deployment tool
A tool for the introduction of radical change
Focuses on cause & effect relationships between strategic objectives
Way of deployment, communication, & execution of strategy
Aims to re-design business processes to improve efficiency and effectiveness
Describes the perspectives to focus upon
Organizational objectives are developed by employees through the ‘catchball’ process
Encourages organizational communication through brainstorming sessions
All endeavours are aligned to the same vision and goal
Involves analysis of risk assessment

10. Mitigating the Downside of BSC
BSC disadvantages can be mitigated in the following ways;
Combining BSC with a complimentary deployment tool e.g Hoshin Kanri
Ensuring that strategic objectives are S.M.A.R.T
Making effort to avoid measure bias. i.e using the same measurement for different objectives
Carrying out analysis of Risk Management i.e opportunity cost should be considered

11. Overview of Strategy Increase market share in Europe Actions and costs
Research European market pricing structure, discounts, distribution, competition, product and safety specifications etc. Identify a distributor who could take on the European sales and handle any future expansion of the market. Need new computerized finance package for Euros and to reduce Finance workload (estimated cost £25,000)
Identify successful European promotional campaigns and put together a winning promotions strategy. Increase marketing spend to £250k.
Increase price of both products by approximately 2.5% (in line with inflation).

12. Actions and Costs contd.
Reorganize the Leisure sales team to three external sales representatives and three internal sales people to handle client follow-up by taking on two new salespeople and take on a European sales representative in the Rescue/Military sales team.
Continue to invest in new technology costing an estimated £150k on capital expenditure.
Reorganize Finance and HR departments by moving wages and salaries manager into the Finance department. Reduce the remaining clerical staff in HR to a total of one

13. ORGANIZATIONAL VISION
To be the second largest inflatable boat Production Company in Europe in 5 years and start to expand in the U.S. market.

14. RECCOMENDED STRATEGY DEPLOYMENT USING BSC
FINANCE
CLIENTS
INTERNAL PROCESS
LEARNING
OBJECTIVE
Increase R.O.C.E. from 27.05% to 35%
Increase customer satisfaction to 85%
Increase market share to 30% of the European market
Increase Production Capacity by 40%
Reduce overhead costs
By 20%.
Reduce Bureaucracy
Increase the number of training/skill development programs for employee.
To get information regarding the target areas, taste and best market opportunities of U.S. market.
MEASURES
Increased profit figures.
Increase in sales in Europe market
Reduction in inventories.
Customer retention
Customer complaints.
Sales in European Market
Analyzing surveys
Reduction in time taken to approve discounts.
Production figure
Reduction in non-value added activities.
Employee efficiency
Employee productivity
Knowledge base regarding the U.S. market
TARGETS
Increase R.O.C.E. to 30% in first 2 years
Increases R.O.C.E. by 33% in 4 years
Increase European market share to 20% at the end of 3 years.
Get at least 75% of survey forms back from the pool of our customers.
Increase production by 30% at the end of 3 years.
Reduce overhead costs by 10% at the end of 3 years.
Reduce time taken to approve discounts by 75% at he end of 5 years.
Increase employee efficiency by 50%
Increase employee productivity by 50% 
Identify potential distributors in the U.S. market.
INITIATIVES
Identify distributor for European market
Increasing marketing spending to £250 k.
Development European marketing campaigns
Re-organize sales team to handle client service
Increase market spends to £250k.
Carry out surveys.
Restructure organizations departments.
Purchasing financial computer information systems to reduce workload
Invest in new technology
Identify and reduce non-value added activities
Supply chain integration
Increase investment in research activities
Invest in new technology.
Form a team of people to research about the U.S. market.

15. Summary
The Organizational objectives have been clearly outlined for each perspective
Specific targets were defined
Performance Measures are suggested
The action steps stated in the strategy were highlighted as initiatives

16. Conclusion
The BSC can be efficiently used in the deployment of this selected organizational strategy
It will allow for the clarification and translation of the company vision
As well as provide feedback to enhance the organizational learning process

17. References
Asan, S.S & Tanyas, M (2007) Integrating Hoshin Kanri and the Balanced Scorecard for Strategic Management: The Case of Higher Education. Total Quality Management, 18(9)Pp. 999 –1014
Pettus, M.L (2006) Utilizing Capabilities to Increase Stakeholder Wealth: A Balanced Scorecard Approach. Competition Forum, 4(1) pp. 15
Brewer, P., (2003) Putting Strategy Into The Balanced Scorecard. Articles Of Merit 2003 Competition. Pp.1-11
Salterio, S. & Webb, A., (2003)The balanced scorecard. CA Magazine, 136 (6) Pp. 3
Kaplan, R.S., & Norton, D.P., (1996) Using the balanced scorecard as a strategic management system. Harvard Business Review. Pp
White, T. (2012) Balanced Scorecard - Advantages and Disadvantage. [Online] Pros-and-Cons. Access Date: 1st February, 2012.
Shin, M & Jamella, D.F (2002) Business process re-Engineering and performance Improvement: The case of chase Manhattan bank, Business Process Management, 8(4). Pp