Balanced Scorecard and Financial Perspective

Balanced scorecard is a performance measurement tool which identifies the issues and provides a framework to take appropriate actions to improve internal processes of a business and their subsequent external results. It is utilized to quantify and give feedback to companies. Data gathering is vital to giving quantitative outcomes, as the data assembled is deciphered by directors and executive officials and used to settle on better choices for the organisation for improving future performances. It additionally causes you to pick the correct things to gauge with the goal so that you can achieve those objectives. This frame work evaluates our strategies for expansion and increase in revenue in both tangible and non-tangible aspects. It assesses both monetary and non-monetary related moves made by the organization to improve execution.

An example of balanced scorecard with the actual and target has been given underneath to give a broader picture of how the balance scorecard can help Flight centre to improve their future activities. Flight centre should concentrate more on generating their income streams from the developing continents where there is an increase in new companies which implies that there are more people travelling in these areas and there is an ascent in air stream of traffic. Continent like Asia and South America are the emerging markets for these start-ups and by concentrating on business sectors it can establish new customers base there by increasing its overall market share. 

They should also include different pay structure to improve their efficiency of their employees. We believe commission-based structure would help to motivate the employees. They likewise ought to improve their asset utilisation by focussing on staff proficiency and efficient usage of space. Each of this element will in the end increase investors value and accordingly add more value to shareholder returns. They should concentrate on developing new income streams, rise in market share in different countries and improve the sale margin from different products channels. Focusing on these issues will help, the organization to meet its principle target of generating more income streams.

Being in a travel and tourism industry Flight Centre should concentrate more on delivering excellent customer experience and become a brand which could deliver such an amazing experience on global level. They should build easy accessibility to draw in new clients and hold the existing ones by concentrating on improving the in-store experience of the customer. They should revaluate their client retaining strategy and digital marketing strategy which will in the long run improve the revenue and growth. This will create a cause and effect relationship where one strategy links to another for instance, by including high value clients and frequent flyers will drive the income expansion methodologies thus which will in the end help in increasing stakeholder value.

The internal business emphasizes more on the managing customers efficiently, managing public relations, efficient governance & regulations alongside smooth inflow of data. These measures will cause the internal procedure to become more effective by including online platform up for upselling their items to the customers and take valuable response on our services. This framework facilitates Flight centre to distinguish their key problems for engaging customers, embracing new innovations and technologies, vendor relationships and other key shareholders.

As we are aware that employees are the most important asset of any organisation, thus its very critical for Flight centre to make their staff members aware about their objectives and ultimate goals that the organization need to accomplish by using the set strategies. This framework will enable the organization to see how they can help encourage, supervise and reward its workforce which will later have an impact on their performance.

In this scorecard, the organization has surpassed the market share of the overall industry target however it failed to achieve its individual product target. If we had use only one aspect to measure the performance of the company, we would have used only one feedback in loop to tackle the issue and continued to achieve overall market share as our main strategy. Nevertheless, from this scorecard we understand that since we surpassed the overall market share, we need to focus on other aspects as well, the organization needs to scrutinize its assumptions of increasing market share would guarantee accomplishing individual product growth. 

This request a remedial activity in the assumption which means re-evaluating business model. Is it the margins from the profit that we need to evaluate from increasing net revenues? Along these lines the scorecard can have a significant effect in remedial activity of the organization. Essentially, after examining the 0% reduction in customer wait time, the organization will return to breaking down the inventory network to recognize the bottleneck. This will help optimising the supply chain network process, we can accomplish our objectives which will lead to accomplishing the ultimate goals of the organization.