Walmart’s Balanced Scorecard and Strategic Plan

Topics: Strategic Planning, Walmart Words: 646 Pages: 2

Walmart’s Balanced Scorecard

Final Objectives	Measures	Targets: Timeline/ Metrics
Increase market share	Total revenue	Increase 5% in first year
Increase shareholder value	Maximization of expected value	Increase 5% in first year
Increase in profit	Total income	Increase 5% in first year
Increase innovation performance	Innovation sales rate	Increase 4% in first year

Customer Objectives	Measures	Targets: Timeline/ Metrics
Increase customer value	Increase profit contribution per customer	Increase 5% in first year
Increase customer satisfaction	Customers’ complaints	Decrease 10% in first year
Increase discounts and great offers awareness	Social media interactions and advertisement	Increase 3% in first quarter
Decrease call center waiting times	Number of customers who hung up because no one answered for several minutes	Decrease time by 15% in first year

Internal Business Process Objectives	Measures	Targets: Timeline/ Metrics
Decrease lead times for new contract implementation	Project implementation time frames	Decrease time by 3% in first year
Introduce quality optimization	Packaging plastic waste amount	Reduce by 99% by 2025
Decrease time needed to approve products	Quality product approval process time frames	Decrease time by 4% in first year
Introduce technology optimization	Website performance	Increase 7% in first quarter

Learning and Growth Objectives	Measures	Targets: Timeline/ Metrics
Decrease employee turnover	Facilitate regular training and opportunities for development	Reduce by 4% in first year
Increase employee satisfaction	Monthly questionaries and feedback	Increase 5% in first quarter
Increase employee performance	Performance rating scale	Increase 8% in first year
Increase safety	Data protection systems	Increase 7% in first year

Justification of why these objectives are appropriate for the project

Objectives and goals identified in the tables are appropriate for the project since they may help Walmart expand its competitive advantage and achieve higher performance. Walmart, the U.S. multinational retail corporation which operates a significant number of grocery stores, discount department stores, and hypermarkets, has its own specific values and goals. Moreover, its vision and mission are focused on making the customers happier by keeping the prices as low as possible while enhancing product quality. It is an extremely successful chain of hypermarkets that aims at never failing their clients’ expectations and trust. Some of the mentioned objectives will also help Walmart satisfy their customers as well as increase profit.

What is more, since employees are a significant part of any company’s success, it is vital to focus on their satisfaction. A number of goals indicated in the tables may help make sure that Walmart’s performance, reputation, and income will increase because the workers’ feedback is evaluated and taken into account. Finally, these objectives are created considering Walmart’s unmet opportunities and potential threats; that is why they are appropriate for this project.

Justification of why these metrics and timelines are appropriate for the strategic plan

Metrics and timelines identified in the tables are also quite appropriate for the strategic plan. To begin with, all timelines are indicated considering the real time that may be needed to achieve a goal. Employees and managers will have enough months to create a needed and proper strategy and implement necessary changes. Those objectives that are easy to reach and are likely to take less time have shorter timelines (a quarter). For example, enhancing employee satisfaction and increasing discounts and great offers awareness. At the same time, it is evident that increasing profit or market share and decreasing call center waiting times may take longer than several months. Such objectives require an extended plan of action and are likely to require more resources.

As for metrics, they are also indicated considering the real possibilities of employees, customers, and managers. Even a 3% or 5% increase is a success, and it is better to achieve goals step by step. Moreover, some metrics are taken from Walmart’s real objectives mentioned in their mission and vision. Since strategic plans require simple measures to track success, the timelines and metrics mentioned in the tables are appropriate for this project.