Spinner Pet Sitters Balanced Scorecard Coursework

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Table of Contents

Balanced Scorecard for Spinner Pet Sitters
Recommendations for Spinner Pet Sitters
Reference List

The current report presents a balanced scorecard for Spinner Pet Sitters. Based on the balanced scorecard and the company’s performance, the report also provides recommendations for Shelly to improve its performance in the coming years.

Balanced Scorecard for Spinner Pet Sitters

A balanced scorecard is a strategic management tool, which is used to align a business’ performance and activities with its mission, vision, and objectives. Based on the information provided in the case study, the following balanced scorecard is developed for Spinner Pet Sitters:

Perspective	Objectives	Measures	Organizational Goal	Actual Performance	Gap
Financial Perspective	Increase quarterly profits to $ 5,000 Increase return on capital employed (ROCE) to $ 4,000	Profit results for the quarter Return on capital employed (ROCE) for the quarter	Profit for the quarter = $ 5,000 Return on capital employed (ROCE) for the quarter = $ 4,000	Profit for the quarter = $ 6,000 Return on capital employed (ROCE) for the quarter = $ 1,500	$1,000 – $2,500
Customer Perspective	Increase customer satisfaction to 95 percent Increase customer recommendation rate to 80 percent	Customer satisfaction rate Customer recommendation rate	Customer satisfaction rate = 95 percent Customer recommendation rate = 80 percent	Customer satisfaction rate = 95 percent Customer recommendation rate = 100 percent	0% 20%
Internal Processes	To reduce duplication of activities in relation to different functions in the organization To reduce bottlenecks in the processes	Percentage of completed activities which are duplicated in other functions Percentage of bottlenecks in an average run cycle	Percentage of completed activities which are duplicated in other functions = 25 percent Percentage of bottlenecks in an average run cycle = 15 percent	Percentage of completed activities which are duplicated in other functions = 20 percent Percentage of bottlenecks in an average run cycle = 15 percent	-5% 0%
People / Innovation / Growth Assets	To reduce turnover of employees To increase job satisfaction among employees	Employees’ turnover rate Employees’ job satisfaction rate	Employees’ turnover rate = 25 percent Employees’ job satisfaction rate = 90 percent	Employees’ turnover rate = 0 percent Employees’ job satisfaction rate = 50 percent	-25% -40%

Recommendations for Spinner Pet Sitters

Keeping in view the planned and actual performance of Spinner Pet Sitters and the gaps identified in the balanced scorecard presented above, following recommendations have been put forward for Spinner Pet Sitters to improving its performance.

The quarterly profits were reported to be above the targeted level, which is a positive sign for the company. However, in order to maintain the continuous growth in profits, the company needs to achieve higher efficiency in its operations. On the other hand, the return on capital employed was considerably lower than expected. In the coming periods, this could be improved by investing additional capital resources for enhancing the operational efficiency of the business.
As far as the customer satisfaction rate and customer recommendation rate are concerned, the actual results show that all expectations were met during the quarter. However, it is recommended that the business should keep its focus on delivering high quality and practicing effective customer care to ensure sustainability.
The efficiency level in the company’s processes should be improved in order to reduce the duplication of activities.
Jobs should be enriched and job designs should be reconsidered to improve the overall job satisfaction level of employees.

Reference List

Balanced Scorecard Institute. (2013). Balanced Scorecard Basics. Retrieved from https://www.balancedscorecard.org/BSC-Basics/About-the-Balanced-Scorecard

Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard-Measures that drive performance. Harvard Business Review, 70(1), 71-79.

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