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Boeing Company’s Balanced Scorecard and Strategy Essay

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The article considered for this paper is titled, “Using the Balanced Scorecard as a Strategic Management System” by Robert S. Kaplan and David P. Norton. The primary focus of the article is on the Balanced Scorecard which was developed and proposed by the authors in 1992. In this paper, the balanced scorecard of Boeing has been implemented. The following balanced scorecard is prepared by considering the financial performance of the company and its strategic objectives set out in its annual report. The balanced scorecard can provide a unique way of setting objectives and a roadmap for achieving them. These objectives are mainly non-financial and assist companies to make strategies for the next periods. The balanced scorecard is easy to understand, and the information provided in the model is categorized into four dimensions including customers, internal business processes, learning, and growth. The company’s vision statement is “Connect, Protect, Explore and Inspire the World though Aerospace Innovation.”

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Financial Perspective
ObjectivesMeasuresTargetsInitiatives
Improve financial performance of the company in the coming periodIncrease the liquidity of the companyImprove liquidity by 10%Invest in design, manufacturing, and development.
Increase the company’s shareholders’ valueIncrease ROCE and ROEIncrease ROCE and ROE by 20%.Speed up the innovation process.
Make new sales contracts with customers and increase the number of orders.
Reduce the operational cost and expenses to increase the profit margin of the company.
It should ensure that the company’s shareholders receive high dividend pay-out and capital gain from the increase in its share price.
Internal Perspective
ObjectivesMeasuresTargetsInitiatives
Improve the level of quality of its products and safetyReduce waste and improve operational efficiencyReduce the company’s waste by 15%Investment in R&D and design improvement.
Develop new teams and bring in new talent from the aviation industry to ensure that the company can meet its competition.
Ensure time delivery of ordersIncrease the number of salesAchieve 85% efficiency by time deliveries.Improving technology.
Ensuring operational effectiveness by introducing new and better systems to control loss and waste.
Integrating the company’s IT systems with suppliers to ensure that the company receives its required resources on time.
Customers’ Perspective
ObjectivesMeasuresTargetsInitiatives
Ensure continuous improvement and development.Improving the use of technology and the quality of aircraft to be built by the company.Improve the value of the quality index by 15%.Increase the effectiveness of its Enterprise Resource Planning (ERP).
Improve relationships with customersAchieve a higher satisfaction level of customersIncrease the number of orders by 50% by 2025.
Improve the level of customers’ feedback by 10%.		Increase the number of sales.
Ensuring that customers are satisfied and provide positive feedbacks.
Improvement of relationships with suppliersAchieve a higher satisfaction level of suppliers and increase their participation
Learning and Growth
ObjectivesMeasuresTargetsInitiatives
Achieving effective supply chain managementDeveloping new technology and safety instrumentsIntegrating the company’s ERP with suppliers’ systems to ensure timely delivery of inventories.
Reducing inventory loss by controlling and managing warehouse effectively.
On-time deliveriesIncrease the number of plane ordersAchieving 85% efficiency related to timely deliveries of aircraft,Coordinate with customers promptly and increase communication with them.
Ensure that their requirements are fully understood and included in the development process.
Establishing and developing long-term employee relationshipsIntegration of different divisions of the companyIncrease the productivity of employees by 10%.Improving diversity and inclusion of employees with different backgrounds, knowledge, and experience.
Improving team management and communication with the organization.
Establishing and developing long-term supplier relationshipsIntegration of the company’s system with suppliersReduce delays in ordering and shipment by 5%.Developing effective relationships with suppliers.
Integrating the company’s systems with those of suppliers to speed up the ordering and delivery.
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IvyPanda. (2020, August 14). Boeing Company's Balanced Scorecard and Strategy. https://ivypanda.com/essays/boeing-companys-balanced-scorecard-and-strategy/

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"Boeing Company's Balanced Scorecard and Strategy." IvyPanda, 14 Aug. 2020, ivypanda.com/essays/boeing-companys-balanced-scorecard-and-strategy/.

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IvyPanda. (2020) 'Boeing Company's Balanced Scorecard and Strategy'. 14 August.

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IvyPanda. 2020. "Boeing Company's Balanced Scorecard and Strategy." August 14, 2020. https://ivypanda.com/essays/boeing-companys-balanced-scorecard-and-strategy/.

1. IvyPanda. "Boeing Company's Balanced Scorecard and Strategy." August 14, 2020. https://ivypanda.com/essays/boeing-companys-balanced-scorecard-and-strategy/.


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IvyPanda. "Boeing Company's Balanced Scorecard and Strategy." August 14, 2020. https://ivypanda.com/essays/boeing-companys-balanced-scorecard-and-strategy/.

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