Develop The Strategic Objectives For Your Business In The FO

Develop the strategic objectives for your business in the format of a balanced scorecard

Develop the strategic objectives for your business in the format of a balanced scorecard. The strategic objectives are measures of attaining your vision and mission. As you develop them consider the vision, mission, and values for your business and the outcomes of your SWOTT analysis. Consider the following four quadrants of the balanced scorecard when developing your strategic objectives:

  • Shareholder Value or Financial Perspective, includes strategic objectives in areas such as:
    • Market share
    • Revenues and costs
    • Profitability
    • Competitive position
  • Customer Value Perspective, includes strategic objectives in areas such as:
    • Customer retention or turnover
    • Customer satisfaction
    • Customer value
  • Process or Internal Operations Perspective, includes strategic objectives in areas such as:
    • Measure of process performance
    • Productivity or productivity improvement
    • Operations metrics
  • Learning and Growth (Employee) Perspective, includes strategic objectives in areas such as:
    • Employee satisfaction
    • Employee turnover or retention
    • Level of organizational capability
    • Nature of organizational culture or climate
    • Technological innovation

Develop at least three strategic objectives for each of the following four balanced scorecard areas identified above (Financial, Customer, Process, Learning and Growth).

Your objectives should be selected, in part, based on an evaluation of a number of potential alternatives to the issues and/or opportunities identified in the SWOTT Analysis paper and table you completed in Week Three. Base your solutions on a ranking of alternative solutions that includes an identification of potential risks and mitigation plans, and a stakeholder analysis that includes mitigation and contingency strategies. You should also incorporate the ethical implications of your solutions into your selection.

For each strategic objective, develop a metric and target using a balanced scorecard format. (For example, a strategic objective in the shareholder or Financial Perspective is to increase market share. A metric to actually measure this strategic objective of market share increase is, "The percentage of increase in market share." The target is the specific number to be achieved in a particular time period. The target for the metric of "Increase market share" could be "Increase market share by 2% for each of the next 3 years" or "an increase of 2% per year for 3 years.") Write a 700- to 1,050-word summary that explains your critical thinking on how you derived your objectives from your vision, mission, values, and SWOTT analysis. Format paper consistent with APA guidelines.

Paper For Above instruction

Developing a comprehensive strategic plan using the balanced scorecard framework enables organizations to align their objectives with their vision, mission, and values while responding effectively to external and internal environments. This approach facilitates a balanced view of performance, integrating financial health, customer satisfaction, internal processes, and organizational learning. The process begins with a thorough understanding of the company’s strategic direction, informed by a SWOT analysis, which uncovers strengths, weaknesses, opportunities, and threats, shaping the priorities and choices for strategic objectives.

Financial Perspective: The financial objectives focus on strengthening the company’s economic position. For instance, increasing market share is crucial because it offers pathways for revenue growth and competitive dominance. A measurable target could be “increase market share by 2% annually over the next three years,” which requires strategies to expand customer base and improve product offerings. Additionally, controlling costs and improving profitability are prioritized to ensure sustainable growth, with metrics such as profit margin percentage or cost reduction ratios. These priorities stem from an analysis of financial vulnerabilities highlighted in the SWOT, such as declining revenues or high operational costs, and are mitigated through cost efficiency initiatives and revenue diversification.

Customer Perspective: Customers are central to long-term success. Improving customer satisfaction and retention are pivotal. Objectives such as “increase customer satisfaction scores by 10% within one year” can be aligned with initiatives for improved service quality or product innovation. Customer value can be enhanced by tailoring offerings to meet specific needs uncovered during the SWOT, including emerging market trends or unmet customer demands. Risks include customer dissatisfaction due to quality issues, mitigated by robust quality assurance processes and feedback mechanisms.

Internal Processes: The efficiency and effectiveness of internal operations directly influence the other perspectives. Goals such as reducing process cycle time or increasing productivity ensure operational excellence. For example, “reduce process cycle time by 15% over the next year” can be achieved through process reengineering or technological upgrades. These objectives are derived from internal weaknesses identified in the SWOT, like inefficient workflows or outdated technology, which are addressed through innovation and process improvement initiatives. Risks such as resistance to change are mitigated via staff training and change management strategies.

Learning and Growth: Organizational capacity and culture determine future resilience. Objectives include enhancing employee satisfaction and retention, which are vital for sustaining operational improvements. A goal such as “increase employee satisfaction scores by 12% in six months” correlates with initiatives to improve workplace culture and develop skills. Innovation capacity can be boosted by investing in new technologies or fostering a culture of continuous improvement. Risks include employee resistance or turnover, mitigated through engagement programs and clear communication of strategic benefits.

In deriving these objectives, I evaluated the potential alternatives—such as technological investments, market expansion, or process optimization—and ranked them based on their alignment with the company’s vision and the opportunities and threats identified in the SWOT. Ethical considerations guided the selection process, emphasizing sustainable practices, fair labor policies, and transparent communication with stakeholders. Stakeholder analysis revealed the importance of balancing shareholder expectations with customer needs and employee well-being, ensuring contingency plans are in place for unexpected disruptions or failures.

In conclusion, these strategic objectives, supported by specific metrics and targets, provide a coherent roadmap rooted in a thorough understanding of internal and external environments. They align with the company’s core values, foster sustainable growth, satisfy customer expectations, streamline internal processes, and cultivate a capable, innovative workforce. Regular review and adjustment of these objectives will ensure the organization remains agile, ethical, and competitive in a dynamic marketplace.

References

  • Kaplan, R. S., & Norton, D. P. (2001). The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. Harvard Business School Press.
  • Niven, P. R. (2002). Balanced Scorecard Step-by-Step: Maximizing Performance and Maintaining Results. John Wiley & Sons.
  • Olson, D. L., & Wu, D. (2011). Business Process Mapping: Improving Customer Satisfaction. CRC Press.
  • Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2020). Strategic Management: Concepts and Cases: Competitiveness and Globalization. Cengage Learning.
  • Kaplan, R. S., & Norton, D. P. (1996). The Balanced Scorecard: Translating Strategy into Action. Harvard Business Review Press.
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  • Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Pitman.
  • McDonald, M. P., & Hallowell, R. (2018). Customer Experience Management: How to Design, Integrate, and Deliver Seamless Customer Journeys. Amacom.
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  • Rumelt, R. P. (2011). Good Strategy, Bad Strategy: The Difference and Why It Matters. Crown Business.

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