BALANCED SCORECARD: SHELL

Balanced Scorecard: Shell

Balanced Scorecard: Shell

Introduction

A balanced scorecard (BSC) facilitates organizations in a number of ways. BSC intensify business as the focus of BSC is on long-term objectives. BSC also permits performance to be scrutinized by offering comparison of results to a set objective. Moreover, the BSC may boost accountability. Thus, this essay prepares a fully built balanced scorecard for Royal Dutch Shell Plc (Shell, 2013).

Discussion

Royal Dutch Shell Plc has started its operation during 1907 and has operations in over 140 countries. Shell is among the largest corporations in the world. Shell mainly deals in the petrochemicals and energy industry and has a huge market share with revenue of about USD 278 billion (Lawson, Stratton & Hatch, 2003).

The main strategy of Shell ensures that they deliver and extract gas and oil in a socially, environmentally and profitably responsible manner. In the BSC, all of the aims are linked with the strategy to create a relationship that helps Shell in attaining long-term objectives. In the BSC, an example of cause and effect relationship might be by enhancing employee and organization relations, employees will be more enthusiastic at the job when they feel that they are valued, which eventually improves business processes like reduction in oil spillage. Shell can state through the media and in their review about spillage reduction. This will improve Shell image in the eyes of customer as Shell might assert to be less environmental risk. As a result, Shell may increase business profitability and attract new customers.

Likewise, from the BSC, cause and effect relationship refers that Shell ascertains new locations of gas and oil; the company may set quantity of oil to transform into Biofuel. This will direct to more transportation modes, includes dealers. This new mode of transportation (such as biofuel can be transported to petrol pumps) increases availability for customer; thereby, would increase profitability of shareholders. This BSC will allow Shell to meet stakeholders' needs (Davis & Albright, 2004).

Perspective

Objective

Measure

Target

Initiative

Financial

Capitalize on wealth of shareholder

Payout ratio of dividend

5% increase

By using good capital budgeting, which is to accept positive net present value (NPV) investment assessment

Boost overall income and profits

Financial report of last year

10% increase

Only contribute in beneficial projects. Make use of project appraisal methods

Business Processes

Become more environmental friendly by decreasing transport emission

Less CO2 produced

Decrease emission of carbon to about 45%

Draw on Biofuel on all effective and well-suited transportation modes

Produce Bitumen without harming environment

Left over “Tailings” amount after mining

No contamination of wildlife and environment

Manage and assess all tailings left from mining of sand

Reduce operational oil spills

By delivered amount

Reduce spillage approximately 75%

Enforce redrafted procedures of oil handling

Customers

Keep existing customers loyal

Last year, issued a number of loyalty cards

Customer loyalty cards increased the customer-based by 20%

Increase in the perks' advertisement of being a loyalty card holder

Attract new customers

Figures of sales

Sales increase to about 10%

Provide and develop goods and services that provide customer value in terms of quality, price, environmental impact and safety.

Biofuel amount increase, along with easy accessibility to ...