Chadwick Inc
Chadwick Inc: The Balanced Scorecard
a) Develop the balanced scorecard for the Norwalk Pharmaceutical Division of Chadwick, Inc. What parts of the business strategy that John Greenfield sketched out should be included? Are there any parts that should be excluded or cannot be made operational? What are the scorecard measures you should use to implement your scorecard in the Norwalk Pharmaceutical Division? What are the new measures that need to be developed, and how would you go about developing them? [50%]
Financial - Objective: 1) Maximise Return on Development Spending 2) Increase Profit - Measures: 1) Return on Capital Employed (ROCE) 2) Product Profitability - Targets: 1) 30% Return 2) 25% of Revenue per year - Initiatives: Employee Bonuses for reaching set targets
Customer - Objective: 1) Increase Market Share 2) Improve Customer Satisfaction - Measures: 1) Market Share 2) Customer Complaint Rate - Targets: 1) 25% 2) Less than 5% - Initiatives: 1) Customer Loyalty Program 2) Customer Satisfaction Surveys
Internal Business Process - Objective: 1) Create new innovative products 2) Improve Product Development Time - Measures: 1) No. of Products under development 2) Product development time - Targets: 1) 3 at all times 2) Less than 8 years - Initiatives: 1) R&D Program 2) Cross-functional Integration
Learning and Growth - Objective: 1) Develop employee technical and commercial skills - Measures: 1) No. of employees participating in industry training programs - Targets: 1) 60% of Staff - Initiatives: 1) Regular employee industry training
The business strategies that are included in the balanced scorecard for Norwalk Division are: maximising return on all development spending, satisfying customer needs, and the development of employee skills. The strategy that is not embraced in the balanced scorecard is the one in regard to driving management responsibility to the lowest level. This strategy was not included because there needs to be
a) Develop the balanced scorecard for the Norwalk Pharmaceutical Division of Chadwick, Inc. What parts of the business strategy that John Greenfield sketched out should be included? Are there any parts that should be excluded or cannot be made operational? What are the scorecard measures you should use to implement your scorecard in the Norwalk Pharmaceutical Division? What are the new measures that need to be developed, and how would you go about developing them? [50%]
Financial - Objective: 1) Maximise Return on Development Spending 2) Increase Profit - Measures: 1) Return on Capital Employed (ROCE) 2) Product Profitability - Targets: 1) 30% Return 2) 25% of Revenue per year - Initiatives: Employee Bonuses for reaching set targets
Customer - Objective: 1) Increase Market Share 2) Improve Customer Satisfaction - Measures: 1) Market Share 2) Customer Complaint Rate - Targets: 1) 25% 2) Less than 5% - Initiatives: 1) Customer Loyalty Program 2) Customer Satisfaction Surveys
Internal Business Process - Objective: 1) Create new innovative products 2) Improve Product Development Time - Measures: 1) No. of Products under development 2) Product development time - Targets: 1) 3 at all times 2) Less than 8 years - Initiatives: 1) R&D Program 2) Cross-functional Integration
Learning and Growth - Objective: 1) Develop employee technical and commercial skills - Measures: 1) No. of employees participating in industry training programs - Targets: 1) 60% of Staff - Initiatives: 1) Regular employee industry training
The business strategies that are included in the balanced scorecard for Norwalk Division are: maximising return on all development spending, satisfying customer needs, and the development of employee skills. The strategy that is not embraced in the balanced scorecard is the one in regard to driving management responsibility to the lowest level. This strategy was not included because there needs to be