Balanced Scorecard Using Balanced Scorecards Thesis

Length: 15 pages Sources: 10 Subject: Business Type: Thesis Paper: #62950666 Related Topics: Customer Expectations, Inventory System, Revenue, Financial Reporting
Excerpt from Thesis :

CMBS overcomes resistance to change by concentrating on quantifying customer satisfaction by asking for ratings of each aspect of a system installation after it has been installed. This gives each member of the team a high level of ownership in the metrics being measured, and over time they improve as CMBS system integration teams become more attuned to the unmet needs of their customers purchasing systems. In this regard BSC strategies with accountability for performance lead to continual efforts to improve scores on each metric defined as part of both the customers' expectations and the motivation CMBS integration teams have to improve their performance and gain greater financial results as well. In this way CMBS alleviates resistance to change by focusing on how to motivate employees to become active change agents for the good of the metrics measured on behalf of clients.

Defining BSC Perspectives for CMBS

The four perspectives of a BSC including customer, financial, internal business processes and learning and growth (Liedtka, Church, Ray, 2008), their objectives, and a quantified metric are discussed in this section. CMBS is heavily involved in Business Process Management (BPM) on behalf of its customers in conjunction with streamlining customer-facing processes. This latter aspect of their strategy necessitates that the company also integrate to Customer Relationship Management (CRM) systems as well, many of which are 3rd party, legacy or designed and built by the companies using them. As a result, CRM system integration is a critical aspect of the BSC perspectives for CMBS.

Objectives for the Customer Perspective of CMBS' BSC Model

The first objective of CMBS is to provide reliable and scalable integration between Cincom ERP systems and their customers' many CRM systems. To the extent a CRM system can become an integral part of an enterprise workflow is the extent to which customer-facing strategies can be measured and improved over time (Chang, 2007). The second objective is to significantly improve the performance of channel management, quote-to-order and configure-to-order workflows that are embedded in customers' CRM systems yet rely on tight integration to their ERP systems. Empirical studies have shown the greater the level of integration between quote-to-order, configure-to-order and mass customization systems in CRM systems to ERP systems, the higher the level of organizational performance over time (Kim, Suh, Hwang, 2003). This objective seeks to unify the supply chain centric processes the company has on the customer facing side, specifically their quoting systems, with the ERP systems which will need to fulfill the orders taken. The third objective is to define pricing and revenue management benchmarks and KPIs that will give CMBS the ability to measure he profitability by customer and by engagement or installation over time. When these three objectives are taken into account, the one quantified metric that matters most is increasing customers' percentage of orders that are fulfillment with no modifications -- which are in essence the percentage of orders that attain perfect order levels of performance.

Objectives for the Financial Perspective of CMBS' BSC Model

The three objectives for the financial planning perspective of the BSC Model include the development of revenue management guidelines and KPIs for CMBS to measure profitability by engagement, defining lifetime customer value and measuring how annual license revenues of ERP systems quantify this aspect of the CMBS customer base, and measuring the long-term impacts of indexing employee compensation to long-term customer value over time. In terms of quantifying one metric in this area, measuring lifetime profitability by customer is used. This metric includes lifetime customer revenue net of cost, so that a true measure of profitability by customer over their total time of engagement with Cincom is measured.

Objectives for the Internal Business Process Perspective of CMBS' BSC Model

The three critical objectives for Internal Business Process perspective as part of the BSC model include defining best practices for integrating customer-facing processes including quote-to-order, inquiry-to-order and configure-to-order workflows with ERP systems' components most dependent on these workflows for demand signals. This first process objective aims to interlink the customer-facing processes of advanced product configuration and quoting with ERP back-end systems including supply chain management to measure total process...


The second objective is to define the cumulative effects of attaining best practices in perfect order performance relative to the ROI attained with an ERP system over time. Empirical studies suggest that the greater the level of integration at the process level between demand management and customer facing systems to ERP systems, the higher the potential level of ROI which an be attained (Velcu, 2007). The third internal business process objective is to define an empirically sound body of research that quantifies the impact of best practices in distributed order management and channel management, two critically important areas in any ERP system, to long-term financial performance of a firm. These empirically-derived metrics will provide a foundation for analyzing system performance over time and effectively managing SLAs with customers over the long-term. In this area the one most critical quantifiable metric is measuring the percentage of SLAs that are attaining or beating their performance targets as originally committed to customers over time. In conjunction with the best practices analysis of channel management and distributed order management systems, measuring the percentage of SLAs that attain or exceed their committed to levels of performance will also provide project managers at CMBS with critical insights into how best to structure SLAs so they are effective in the future as well.

Objectives for the Learning and Growth Perspective of CMBS' BSC Model

In terms of learning and growth, CMBS thrives on knowledge as it is critical to their overall business model, including staying current with the latest software development techniques and the development of Web Services. The three objectives from a learning and growth perspective as part of the BSC for CMBS center on educating customers about how to get more value of their investments in Cincom enterprise software. The first objective is to create an enterprise-wide knowledge management system that will provide customers with a knowledgebase they can draw from on specific questions regarding how to get CMBS software to manage a given task. This is partially a customer service objective, yet it is critical from a learning standpoint as well. The second objective is to create a more interactive, vide-based set of tutorials on how best to use CMBS' ERP software for managing channel strategies including partner relationship management-based (PRM) strategies over time. PRM strategies are focused on the indirect channels companies use to attain their selling objectives. A third learning and growth objective is the development of a CMBS University which can guide customers on how best to create their own unique applications and tools using the software toolkits provided. The quantifiable measure that is associated with this perspective of the BSC is the development of a measure of the percentage of customers who attain certification of the Socrates Development Environment and create a specific Web Service to automate their ERP processes more efficiently and cost-effectively as a result.

Defining Methodologies for CMBS BSC Metrics

Approaches and methodologies for each of the four BSC metrics are provided below. The use of CMBS analytics typically sold to customers is also used internally to derive these measures of performance as well.

Percentage of Perfect Orders Delivered

Using the project schedules by customer, CMBS can determine the percentage of modules that were initially installed correctly and integrated to the customers' requirements. This methodology also can index in their levels of customer satisfaction as well and provide a moving average of perfect order performance relative to customer satisfaction over time.

Lifetime customer profitability as a percentage of total revenue

Too often companies only measure lifetime revenue of their customers, not profitability. Using a series of financial reporting applications the lifetime customer profitability of each CMBS customer will be defined and then analyzed relative to perfect order performance and customer satisfaction. If causality exists across these factors then a model will be created that quantifies the contribution of each of these factors. The use of this methodology, if successful, will also lead to the development of an entirely new generation of financial analytics applications for CMBS as well. It has been shown that when companies create applications to better manage themselves they also lead to innovations for the company as well (Lee, Chen, Tong, 2008).

Percentage of Service Level Agreements (SLAs) that meet or exceed performance commitments

The SLAs that CMBS has with its customers is even more important than a contract in that it provides for remedies of a lack of performance on an ongoing basis. This translates into legal liabilities in ways unforeseen when an SLA is initially created. For CMBS to mitigate the level of financial and legal risk it is critical to know which SLAs they are…

Sources Used in Documents:


Elizabeth Barber. (2008). How to measure the "value" in value chains.

International Journal of Physical Distribution & Logistics Management, 38(9), 685-698.

Richard Barrett. (2004). Hype and reality in performance management.

Measuring Business Excellence, 8(2), 9-14.

Cite this Document:

"Balanced Scorecard Using Balanced Scorecards" (2009, May 28) Retrieved September 21, 2021, from

"Balanced Scorecard Using Balanced Scorecards" 28 May 2009. Web.21 September. 2021. <>

"Balanced Scorecard Using Balanced Scorecards", 28 May 2009, Accessed.21 September. 2021,

Purpose of

The documents we provide are to be used as a sample, template, outline, guideline in helping you write your own paper, not to be used for academic credit. All users must abide by our "Student Honor Code" or you will be restricted access to our website.

Related Documents
Balance Scorecard Applications in Healthcare Organizations Balanced...
Words: 12912 Length: 40 Pages Topic: Business - Management Paper #: 64681019

Balance Scorecard Applications in Healthcare Organizations Balanced Scorecard The Learning & Growth Perspective The Business Process Perspective The Financial Perspective Strategy Mapping General Perspective of Performance Management Performance Planning Ongoing Performance Feedback Employee Input Performance Evaluation & Review Performance Management in Healthcare Organizations Healthcare Organization as Learning Organization Principles of Performance Management in Healthcare Organizations Performance Measurement & Evaluation Methods Used In Healthcare Organizations Setting Up Performance Management Systems Dimensions and Approaches to Performance Management in Health Care Taken From the British National Health Service Induction Programs Performance Monitoring Personal

Balanced Scorecard Evaluation the Voice of the
Words: 745 Length: 3 Pages Topic: Business Paper #: 70218413

Balanced Scorecard Evaluation The Voice of the Employee focused on safety and poor employee relations. This falls under the Learning and Growth category of the balanced scorecard. It evaluates the correct level of expertise with each employee, employee turnover, job satisfaction, and training (McCarthy, 2008). The balanced scorecard measures the top down strategy of the company's mission statement and strategy (Kaplan, 2007). From the mission and strategy of USPS, the employees

Balanced Scorecard Is a Framework for Setting
Words: 904 Length: 3 Pages Topic: Business Paper #: 95049289

Balanced scorecard is a framework for setting objectives for the business. Ideally, when the company meets these objectives, the company will be successful. To make this happen, the different objectives that the company sets within the balanced scorecard framework should be congruent. That is to say, the different objectives should make sense together (BSI, 2012). There are four elements to the scorecard -- the shareholder value perspective, the customer value perspective,

Balanced Scorecard I Attaching a Case Study
Words: 954 Length: 3 Pages Topic: Business Paper #: 64504614

Balanced Scorecard i attaching a case study answer question USING STRATEGY IMPLEMENTATION THEORY AND FRAMEWORK >>>Critically discuss benefits a balanced scorecard approach measuring monitoring performance, analyze BCom develop performance measures relate corporate goals. Balanced scorecard: How it can help Bcom plc The balanced scorecard approach The balanced scorecard approach was developed, as its name implies, to give businesses a more 'balanced' way of evaluating their strengths and weaknesses. It suggests that organizations view themselves

Balance Scorecard and Its Relationship
Words: 1272 Length: 5 Pages Topic: Business Paper #: 94857442

This particular perspective is used in the accurate identification of infrastructure that a given company must acquire so as to compete in the future dynamic and highly competitive global market place. The Balanced Scorecard has not just been praised for its theoretical soundness but has actually produced real results. Prickett (2003) noted that in 2003, a study that involved 35 firms in the UK proved that the best performance measurement

Balanced Scorecard Saatchi & Saatchi: Balanced Scorecard
Words: 929 Length: 3 Pages Topic: Business Paper #: 8217198

Balanced Scorecard Saatchi & Saatchi: Balanced Scorecard Case Study Saatchi & Saatchi was once one of the world's most respected advertising agencies, but its fortunes were floundering in the mid-1990s. It had crafted a quirky brand image for itself that had been diluted due to its over-expansion and a lack of a coherent vision for its various component agencies. "Throughout the 1970s and 80s we experienced rapid growth through acquisitions. We were