Chapter 14, Problem 1PB

Instructions

1. Based on the balanced scorecard and the following descriptions of the predicted relationships between strategic objectives, draw the scorecard’s strategy map.

a. Training employees effectively and reducing employee turnover can both be expected to improve returns processing and reduce shipping errors.

b. Both improving returns processing and reducing shipping errors can be expected to delight the customer.

c. Delighting the customer can be expected to increase market share.

2. Based on the balanced scorecard and the following descriptions of the predicted relationships between performance metrics, draw the scorecard’s measure map.

a. Median training hours per employee and average employee tenure will both influence hours from returned to refunded and number of erroneous shipments.

b. Both hours from returned to refunded and number of erroneous shipments will affect percentage of customers who shop again and online customer satisfaction rating.

c. Both percentage of customers who shop again and online customer satisfaction rating will influence the company’s market share.

3. Label each element of the balanced scorecard.