Chapter2: The Balanced Scorecard and Strategy Map

2-54 Domestic Auto Parts, Harvard Business School Case (HBS Case 9-105-078).

The case discussion can proceed perspective by perspective, working from

the Financial through the Customer, Process, and Learning and Growth
objectives. After developing a strategy map of objectives, encourage students
to generate measures for each objective. If students generate a large number
of measures per perspective, students can vote to determine which the critical
few are. An example of a completed Balanced Scorecard and strategy map
follow.

21
Atkinson, Solutions Manual t/a Management Accounting, 6E
Domestic Auto PartsBalanced Scorecard
Perspective Objectives
Financial Increase Return on Capital Employed
Reduce Unit Costs
Increase Asset Utilization
Grow Revenue/Increase Market Share
Customer Deliver On-Time, On-Spec
Achieve Image of Trusted Supplier
Enhance Customer Relationships
Become Innovative Supplier
Process Improve Maintenance Effectiveness
Improve Manufacturing Efficiency
Upgrade Equipment
Improve Supplier Relationships
Understand Customer Needs
Build Distribution Network
Excel at Product Development
Learning & Enhance Workforce Capabilities
Growth
22
Measures
ROCE (12%)
% Productivity Improvement
Gross Margin
Sales/Assets
% Capacity Utilization (90%)
% Revenue Growth (12%/yr.)
Market Share (#1 or #2)
OTD %
Customer Defects/Returns
Customer Retention
Customer Ranking
Key Customer Account Share
($/%) Sales New Products
($/%) Sales New Technology Products
$ Hours Unscheduled Downtime
# Breakdowns/Incidents
PPM Defect Rates
Cycle Time
Changeover Time
Cost/Unit
% Gross Assets < 3 years old
% Certified Suppliers
Supplier OTD
Supplier PPM Defect Rate
Supplier Cost Reduction
# Hours with Key Customers
# Plans Jointly Developed with
Customers
# Customers Profiled
# New Distributors
Units Sold Through Distributors
NPV of Product Pipeline
Customer Rating of Pipeline
Time-To-Market
Strategic Job Coverage
# Cross-Trained Employees
 Chapter2: The Balanced Scorecard and Strategy Map

Leverage Information Technology Customer Databases

CRM Availability
Process Improvement (JIT) Tools
Build a Culture for Change Employee Survey
# Best Practices Shared

23
 Chapter2: The Balanced Scorecard and Strategy Map

51