Hyde Park Electronics is a family business with 42 employees and manufactures ultrasonic proximity sensors. Initially, the business had concentrated more on the cash management and strict sales management but lacked a long-term strategy that would ensure continuous success. After taking over as the CEO, Lewis and his team incorporated BSC with much emphasis on the operational quality since they were already good at financial management. Their approach aimed at counter-balancing every measure with a counteractive measure to ensure none overshadows the other (Gumbus & Lussier, 2006).
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- They adjusted their system and improved their manufacturing efficiency from 61 percent to 81 percent by maximally utilizing their staff, reducing the workforce, quick and efficient delivery of goods and services.
- Increasing sales and cutting on expenses especially the ones that tend to risk the profitability of the business.
- Introducing new profitable products that are tailored to meet customer needs.
- Improving employee welfare through a series of employee motivation programs such as open discussions with CEO, monthly town hall meetings, parties and longer employee tenures.
- Proper financial management.
The management was determined to achieving all their strategies, of which they did (Gumbus & Lussier, 2006).
After taking over, Lewis and his team realized that the business had very good financial strategies but all these were short term since they only focused on the well-being of the business. The measures formulated during BSC implementation were directly tailored to ensuring both the well-being of the business and the satisfaction of customers (Averson, 1998). Products and operations were altered to ensure efficiency in service delivery and satisfaction of customers. The business maximized on their potential to ensure efficiency at the same time engaged in creating customer loyalty through their quality products and attractive services (Niven, 2005).
Initially, the business was only applying financial measures in its strategies. However, with the implantation of the BSC, the business was able to link the financial measures to the customer and operational measures. The operational measures were meant to ensure quick and quality service delivery to their customers hence attracting and retaining more customers (Averson, 1998). This then translated into increased sales and profits because efficiency ensured low operational costs. Both the business and the customers benefitted and that is why the business realized the greatest profits in seven years since 2001. Moreover, prompt conveyance of commodities appreciated considerably to 96 percent (Gumbus & Lussier, 2006).
Averson, P. (1998). What is the Balanced Scorecard? Balanced Scorecard Institute, 25 (4), 123-126. Web.
Gumbus, A., & Lussier, R. (2006). International Council for Small Business. Journal of Small Business Management, 44 (3), 407-426.
Kaplan, R., & Norton, D. (1998). The Balanced scorecard – measures that drive performance. Harvard Business Review, 38 (2), 233-289.
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Niven, N. (2005). Learning and Growth Perspective. Harvard Business Review, 42 (1), 44-56. Web.