Module 2: The customer perspective of balanced scorecard

Module 2: The customer perspective of balanced scorecard

Introduction

The tool of balanced scorecard is implemented in thy working system of the organization to introduce the concept of customer metrics into the performance management system of the company. Hence, some of the important attributes of the customers that are covered in this tool include customer value, customer satisfaction, and the policies of customer retentions (Gumbus & Lussier, 2006).

However, in middle of this scenario most of the companies are observed to lose their plot while measuring the success of customer with respect to organization performance. For instance, the major responsibility of the organization is to earn profit by selling their products and services to their customers, and in order to satisfy customer needs, these companies are drafting their strategies by having customer obsession, rather than focusing on their customers.

However, by the implementation Balanced Scorecard tool companies would be able to prevent above defined scenario from occurring, and would be able to identify the profits received from the valuable customers, and loss occurred by invaluable customers.

For better understanding of this tool, the writer in this essay has finalized three companies that have successfully implemented balanced scorecard tool, and are able to identify the difference between their loyal customers, and profitable customers (Kaplan, 2005).

Discussion

Hyde Park electronics and balanced scorecard implementation

This company is considered as one of the largest manufactures of Ultrasonic proximity sensors based products; it is situated in Dayton, Ohio. Hyde Park is a family and was incorporating approximately 40 years ago Vincent Lewis father in Law.

Further, in the year 1991, Lewis was named as the new Chief Executive officer of the company, and just after few days of service, the new CEO with the support of his old employees lead the company from front to implement the balanced scorecard tool to manage the performance of the company (Gumbus & Lussier, 2006).

The CEO with the support of 42 employees and 8 senior management staff was able to affectively designed BSC. Further, their journey was not straight forward, as during the duration of the development all of them were forced to overcome several obstacles. However, there hard work showed as in year 2001, that the company was able to sustain its growth rate from last six years or so.

Hyde Park that was initially considered as the low manufacturing company with a few customers, but was able to transform itself and now considered as largest company to sell its product to broad range of customers, across the globe. Particularly introduction of Ultrasonic technology change the perception of the company, and now it has been observed that company achieve 80 percent of their monthly target mainly due to sale of new technology.

In addition to this, management of the company believes those customers are their major source of success, as they are firm on their principles that by keeping the customer satisfied will increase the sales of the product, and revenues for the company. Hence, to satisfy the needs of ...