Financial PerspectiveThe balanced scorecard’s firstperspective is the financial aspect of business. It measures the effectivenessof actions taken in the implementation and execution of the strategy to thebottom line improvement. Many different measures are used to look mostly atprofitability of the business, for example, return on capital employed oreconomic value added.
In DBF case, the company wants to provide superiorreturns to their shareholder. However, the investor have been critical of thelow dividend yield on their DBF shares. Objective Measures Target Initiatives Increase Dividend yield Dividend yield ratio untill 2020. Increase dividend yield by 15% on the next year. Reduce production costs in order to to pay more for dividend. Increase Revenue Number of new customer Increase the number of customer by 15% Strong marketing will make sure that DBF can gain new customers. SMART objectives/measuresReferring to SMART, the objectivesmust be specific, measurable, achieveable, realistic and also timeframe.
DBFneed to be specific on what they going to achieve. As we know that DBFobjective is to double the size of its revenue by the end of 2020. Since theywant to double the size of its revenue by the end of 2020, DBF should investmore in company’s asset rather than paying out dividends from their profit. Forthe example, DBF can achieve the goal of increasing of revenue by selling theproduct in new markets, development and creation of new product or gaining new customers.Other than thats, DBF should try to reduce the operational cost by find a possibleimprovement opportunities. By setting this SMART objectives, they can achieveand provide superior returns to the shareholders. Internal Business Processes PerspectiveThe internal processes measures focuson the internal process and especially the ones that will have the most impacton customer satisfaction and achievement of organizations financial objectives.The aim is to identify the critical internal processes in which theorganization must excel.
In this case, the DBF employees have been complaintsabout their PC’s are not adequate which result less effeciency on performancetheir services. The last time an initiative had been undertaken to bring PCs upto date was in 2013. Objective Measures Target Initiatives Update the software Number of PC that require an update Reduce the technical errors.
Get the new version of software Replace with new PC Number of complaints by the employees. Increase the efficency of the employee. Buy new PC