Implementing a balanced scorecard approach at PolyOne Corporation

Polyone Corporation: Balanced Scorecard

In order to analyze the strategic goals created by PolyOne Corporation, the organization will follow the insights provided through a balanced scorecard. A balanced scorecard is a tool that aids an organization in attaining its financial objectives. This is achieved by associating and creating objectives within strategic goals gained through the organization's business model (Pearce & Robinson, 2013). This balanced scorecard will allow PolyOne to break the mission statement down into objectives. These objectives are designed to provide direction for employees while tracking the companies stated mission and vision values.

Financial Perspective

PolyOne Corporation needs to focus on developing their innovative edge and appeal to new customers, in an effort to increase and grow within the industry. The target is to reach a 5% increase of clients in the first year and an 8% increase in the second. This will be attained through increased marketing campaigns to win new clients followed by a commensurate increase in production levels. In an effort to increase profit margins, production costs will be reduced by 40% in the first year, and 55% in the second. Some of the causes for the high costs of production have everything to do with wastages of resources, presence of dummy workers and a work schedule that has much idle time. In this case, the plan is to cut down on the wastages, downsize the workforce to optimal number and revise the time schedule. Additionally, PolyOne Corporation plans to increase profitability by 15%, and overall competitive edge. A rise in profit margins, reduction in expenses, and a boost in customers will positively affect shares and shareholders. Each of these elements measurable, and should regularly be analyzed to ensure growth and change where required.

Customer Perspective

Customers are an important aspect of every organization. Working to build customer satisfaction and overall happiness within the organization will aid in retention of current clients and help draw in prospective clientele. PolyOne Corporation intends to increase customer satisfaction. Later, it will analyze the shift in satisfaction through customer surveys. Interaction with current, previous, and potential customers will regularly happen, and customers will be able to take surveys online or over the phone. The new department is setting targets of a 12% and 22% increase in customers in the first and second year. It intends to increase the number of customers by making its products more appealing. PolyOne's management understands that customer satisfaction is the best way of winning customers' loyalty. The intention is to entice the employees to be ready to purchase the company's new products that are in line, the Larger Plumbing Piping. Keeping in contact with clientele is vital if the organization intends to increase satisfaction and improve profits. Open contact through surveys, customer service representatives, and services will also help the organization build on their dwindling reputation.

Learning & Growth

Learning and growth amongst employees is a very important aspect of a business (Pearce & Robinson, 2013). A high turnover or low retention rate within an organization can cost a company a lot, in a number of ways. The amount of time and money put into constantly training new employees can drain on profit, raise expenses, and create poor company image. Increasing productivity by raising satisfaction levels through added benefits will help with retention. Asking employees to answer surveys can provide insight into working conditions, satisfaction, pride, and any suggested changes. Education is equally important, as informed employees make for productive employees. Communicating company goals, strategic plans, and short-term objectives will help with overall growth and productivity. This can be obtained by holding regular meetings, and building on communication and involvement from employees. Management should be trained in proper communication techniques, and progress is to be analyzed quarterly.

PolyOne Corporation Balanced Scorecard: Financial

Objectives

Measurement

Targets

Plan

Analysis

Increase overall market shares

Focus on creating new clientele through customer choice division. Create new online advertisements, take full advantage of free and low-cost ad space, such as social medias and radio.

Reach a 5% growth of new clientele in the first year and 8% increase in second year.

Hire and train qualified employees to research, contract, and run the division. Contact current customers with new options, and begin contacting potential customers about new changes. Reach out to previous customers, work to get lost consumers back.

Growth could be difficult at the start, but should increase steadily.

Increase overall profit margin

Reduce costs on production, creating a network of producing organizations.

Lower production 40% in first year, and 55% in second

Rates on piping production are high, lowering production and pushing distribution to new customers will aid in raising the overall profit margin.

Contracting enough producers to create piping for all customers within the organization may prove difficult at the start.

Increase Organization's Profitability

Increase the number of customers through the customer choice program.

Increase 15% in the first year, and 26% in the second. Raise shareholder returns steadily in 2nd and 3rd year.

Offer additional services to customers, reaching out to potential clients outside of current service zone. As more producers are brought in, the organization will have larger quantities to distribute, allowing PolyOne Corporation to grow nationally and internationally.

Analyze profit quarterly, to ensure growth.

Competitive Edge

Outrank competition in other countries through innovative customer choice division. Gain customers through gaining producers.

Gain more producers each year. Increase first year's producers by 20% in each additional year to follow.

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