W3 Asign2 Strategy Map & Balanced Score Card - Essay Example

ROTO-ROOTER An organization must run smoothly to be successful. Because an organization is usually made up of several groups working together towardsthe company’s goals, an organization should ensure that each group is giving its best to meet its targets, and as such contribute in the attainment of the company’s goals. Tools organizations have started using to measure this kind of productivity are the strategy map and the balanced scorecard. While the balanced scorecard is a tool that provides feedback on key performance indicators or KPIs, the strategy map is a way of presenting the targets and the KPIs needed to meet said targets.

(Cokins, G., 2013) Using these two tools, this paper will attempt to identify the KPIs for Rotor-Rooter, a plumbing company that is based and provides services primarily in the United States. It was difficult to identify the KPIs for Roto-Rooter because aside from company-owned operations in the United States they also have independent contractors and independent franchises locally and internationally. (Roto-Rooter, 2014) Since the writer is of the belief that the independent contractors and franchises should probably have their own KPIs, this paper will focus on the performance of the company-owned branches.

Generic Strategy Map As mentioned earlier, this tool presents the objectives and KPIs needed to meet those company goals. For this company, the key indicators of performance start with, under Learning Growth, enhance technical skills for all Level 1 employees and improve managerial & administrative skills for Level 2 employees. I think these are important because Rotor-Rooter’s business requires its employees at these levels to practice technical skills to complete their work and organizational skills and management skills to coordinate with their many branches, franchises and contractors, respectively.

For the Learning Process stage, the KPIs are to implement training programs for current and new employees and to implement management training programs to meet the objectives at the first level of the map. For the Customer Level, the KPIs are to attain customer retention at 100%, to continue providing quality service, and to provide after sales service. Finally at the Financial Stage, the KPIs are to increase revenue and to increase productivity. Balanced Scorecard A balanced scorecard contains individual KPIs with a predefined target measure, and KPIs that are project-based and process-based.

(Cokins, G., 2012) For Roto-Rooter, the balanced scorecard will show, as KPIs for the managers and employees, target outputs with regard to service delivery time, number of customers serviced, number of after-sales service conducted, number of technical training conducted, and the like. For the executive managers, the KPIs include target outputs with regard to total number of new contractors and/or franchises opened in America and around the world, total number of machinery/tools acquired, the rate of customer satisfaction and the rate of employee satisfaction.

It can also include the number of new products developed as Roto-Rooter also offers commercial cleaning products. Also, it can include the number of contracts it was able to acquire from schools, businesses, hotels, restaurants and other shops. (Roto-Rooter, 2014) References:Cokins, G. (2012, Jan. 18). A Kite a Broken String – The Balanced Scorecard. Retrieved from http://businessfinancemag.com/blog/kite-broken-string-balanced-scorecardCokins, G. (2013, July 22). The balanced scorecards, strategy maps and dashboards: Why are they different?

Retrieved from http://www.cgma.org/magazine/features/pages/20138186.aspxRoto-Rooter. (2014). Company information. Retrieved from http://www.rotorooter.com/about-us/