CASE STUDY

Case Study: Shipyard Progres



Executive Summary

Balanced Scorecard (BSC) is a mechanism for serial communication to staff development strategy, the company's goals and monitors their achievement through the so-called key performance indicators (KPI). KPI are, in fact, measuring devices reachable goals, and characteristics of business process efficiency and performance of each individual employee. In this context, the BSC is a tool not only strategic but also operational control. The Balanced Scorecard translates mission and overall strategy of the organization of the system clearly defined goals and targets, and indicators measuring the extent to which these units are grouped into four key projections, "Finance", "Customers", "internal processes" and "Infrastructure / staff ", which are located in a certain hierarchical order. Application of the BSC is possible with the objective of the organization of awareness of its strengths and weaknesses of the prevailing market situation, on what basis should be developed mission and strategic priorities of the organization.

Case Study: Shipyard Progres

Introduction

Harvard Business School's Robert Kaplan and David Norton established that almost all of their clients in the privatized industries were incapable of strategically planning their daily operations based on the company's strategic objectives. Based on their researches, the reasons why companies fail to attain their objectives are the following: undefined work priorities, lack of funding, amount of work are not commensurate to number of staff, inflation, and inefficient approach to the design and implementation of strategic objectives. Whatever the classification of an organization, whether people-driven as NGO or profit-driven as successful companies, the balanced scorecard offers a realistic model to base the company's strategic objectives, to put into practice the strategies, and to evaluate and assess performance based on the set objectives.

There are four clear-cut standpoints from where the vision and mission statements are developed. These are the internal processes, financial, learning and growth, and customers. Internal processes correspond to affect the quality of products and services bring to the consumers. It also aids in identifying business processes that should be operated on a continuously high standard of operation to satiate customers. Whether the organization is profit-driven or non-profit-driven, expenses, funds, and budgets of the organization still requires monitoring. The financial viewpoint gives confirmation of whether the financial strategy of the organization is producing profits and reducing expenses. Learning and growth identifies staff characteristics, and information technology the company should employ and acquire to attain the mission and provide satisfaction to the customers. Customers in the profit-driven organizations sustain the financial standpoint. Customers in the non-profit-driven organizations are the dominant factor because their main objective is to provide satisfaction to the targeted constituents.

To effectively implement and measure strategic objectives, a three to five year period is required contrary to the annual planning conducted by a majority of the organizations that design goals on a one to two year period only. .Mainly because of the volume of information, to be processed in a balanced scorecard, the three to five year lead time is to give adequate and realistic measurement to evaluate ...