Planning and Measuring Performance

Planning and Measuring Performance
Jonathan Holland
July 8, 2013
Tamara Maynard
MGT/521

Balanced Scorecard Aspect of Company Performance | Factors to be Considered | Organizational Goal | Actual Performance | Gaps | Financial | Quarterly Profit Results
Return on Capital Employed | $5,000
$4,000 | $6,000
$1,500 | Quarterly profits were higher than anticipated ($6,000 versus $5,000) and Return on Capital Employed was much lower than anticipated ($1,500 versus $4,000). | Customer | Customer Satisfaction Rate
Customer Recommendation Rate (rate of new business generated by recommendations from existing customers) | 95%
80% | 95%
100% | Customer Satisfaction Rate was right on target at 95% and Customer Recommendation Rate was much higher than anticipated (100% versus 80%). | Internal Processes | Duplicate Activities Across Functions (percent of the activities completed that are duplicated in another function)
Process Bottlenecks (percent of the process that becomes bottlenecked in an average run cycle) | 25%
15% | 20%
15% | Duplicate Activities Across Functions was lower than anticipated (20% versus 25%) and Process Bottlenecks is right on target at 15%. | People
Innovation
Growth Assets | Employee Turnover
Employee Job Satisfaction | 25%
90% | 0%
50% | Employee Turnover rate is much lower than anticipated at (0% versus 25%) and Employee Job Satisfaction is lower than expected at (50% versus 90%). |

Financial | Profits were higher than expected, however the return on capital employed was much lower than anticipated. The company may want to look into increasing its fees for dog sitting. Also looking for supply stores that offer the same quality supplies, but at a cheaper price may increase return on capital employed. | Customer | Actual customer satisfaction was right on the target goal, this may be due to Spinner Pet Sitters being on time and doing the job they are expected to do, so all customer expectations were accommodated. However, recommendation rates were higher than expected, so the services viewed by customers are at high quality and worthy of recommendation. Spinner Pet Sitters will need to make sure that once dog-sitting appointments start to increase, the quality of services is not lost. Since the company currently contract out employees, the profitability of acquiring permanent employees should also be assessed. | Internal Process | Based upon the internal process findings, it seems the company is more efficient than it thought it was in its services. Currently the company is sufficiently running its processes such as walking the animals, feeding the pets, playing with them, cleaning up any waste, and bringing in the home's mail and newspaper. With the increase of the charge for dog-sitting fees, a suggestion to add an additional dog sitter will make an even more improvement to the internal processes but will also improve other areas such as employee job satisfaction. The additional help of a permanent employee may relieve stress off the part time employees. | People/Innovation/Growth Assets | Since employee turnover was at 0% and job satisfaction was much lower than expected, it seems as though employees are dissatisfied with some factors within the company, and this needs to be studied thoroughly. With a high recommendation rate employees may be feeling overwhelmed with dog sitting appointments. This can also be a cause of employee dissatisfaction. Adding additional dog sitters needs to be analyzed. |