Chadwick Inc
(a) Norwalk Division Balanced Scorecard | | Objectives | Measures | Targets | Initiatives | Financial perspective | Maximise return on development spending
Increase profits
| Return on research capital (RORC)
Product profitability | 30%
25% per year | Develop and introduce new productsIntroduce an intense marketing campaign | Customer perspective | Increase market shareImprove customer satisfaction | Market share
Customer complaint rate | 25%< 5% |
Customer loyalty program | Internal business process perspective | Create new, innovative drugs
Improve product development process | No. of products under development
Product development time | 3 products under development
< 8 years | Introduce new marketing campaign to launch new products
Implement new strategies to reduce product development cycle | Learning & growth perspective | Develop employee technical and commercial skills | No. of employees participating in industry training programs | 60% of staff | Employee industry training |
The business strategies that are included in the balanced scorecard for Norwalk Division are: maximising return on all development spending, satisfying customer needs, and the development of employee skills. The strategy that is not embraced in the balanced scorecard is the one in regard to driving management responsibility to the lowest level. This strategy was not included because there needs to be a balance in responsibility through the organisation. Employee targets and incentives are closely linked to the performance of the division; more responsibility given to staff at lower levels could increase the possibility of managers setting strategies for their own benefit and division. This could lead to discrepancies between organisational goals and the goals set by management for a specific division.
New measures that need to be developed and included in the balanced scorecard are return on research capital, product
Increase profits
| Return on research capital (RORC)
Product profitability | 30%
25% per year | Develop and introduce new productsIntroduce an intense marketing campaign | Customer perspective | Increase market shareImprove customer satisfaction | Market share
Customer complaint rate | 25%< 5% |
Customer loyalty program | Internal business process perspective | Create new, innovative drugs
Improve product development process | No. of products under development
Product development time | 3 products under development
< 8 years | Introduce new marketing campaign to launch new products
Implement new strategies to reduce product development cycle | Learning & growth perspective | Develop employee technical and commercial skills | No. of employees participating in industry training programs | 60% of staff | Employee industry training |
The business strategies that are included in the balanced scorecard for Norwalk Division are: maximising return on all development spending, satisfying customer needs, and the development of employee skills. The strategy that is not embraced in the balanced scorecard is the one in regard to driving management responsibility to the lowest level. This strategy was not included because there needs to be a balance in responsibility through the organisation. Employee targets and incentives are closely linked to the performance of the division; more responsibility given to staff at lower levels could increase the possibility of managers setting strategies for their own benefit and division. This could lead to discrepancies between organisational goals and the goals set by management for a specific division.
New measures that need to be developed and included in the balanced scorecard are return on research capital, product