Introduction
Nowadays, in the context of globalization and the development of business plans, the number of various stores is increasing. Therefore, the management of companies has to implement certain strategies to remain competitive in the market. One of these strategies is a Balanced Scorecard (BSC), which is successfully used worldwide. The BSC is a management tool that categorizes organizational goals, regulates activities performed by employees, and controls the results of these activities (Gao et al., 2018).
Clotheshound, an apparel store, has been using this strategy for a year. In this paper, the information about the implementation of the Balanced Scorecard by the company, and the next steps of management will be included. Also, the communication of this strategy to the organization and its translation into performance measures will be discussed.
Management Strategy in Clotheshound
The implementation of the BSC strategy in the Clotheshound store resulted in improvements in some performance measures, but not in others. Therefore, to achieve improvements in all indicators of effectiveness, management, after implementation of the BSC strategy, develops a new reward system for staff. This system includes bonuses for the best employee of the month, covering the cost of vacations for the best sellers of the year, and small rewards for politeness with colleagues and customers.
The BSC communicates strategy to the organization through regulation of the working process in the company, tracking of the work performed by employees, and monitoring the results of the staff activities. These actions improve performance measures, which enhance the position of the company in the market. It is worth mentioning that the BSC strategy differs from company to company because every organization has its unique history of development, difficulties, and prerequisites that caused these difficulties. All these factors should be taken into account by managers who are responsible for implementing the strategy.
The successful creation and use of the Balanced Scorecard are achieved through a detailed analysis of a company’s position in the market and identification of existing issues. Further steps include discussion of possible ways of addressing the problems by a management team and an in-depth explanation of the main aspects of the strategy to staff. The last measure is monitoring the actions of staff and the consequences of the implementation of the plan.
Reference
Gao, H., Chen, H., Feng, J., Qin, X., Wang, X., Liang, S., … Feng, Q. (2018). Balanced scorecard-based performance evaluation of Chinese county hospitals in underdeveloped areas. The Journal of International Medical Research, 46(5), 1947-1962.