Balanced Scorecard for Motorola Mobility - Case Study Example

Case 3: Balanced Scorecard and Change Plan 3.1 Balanced Scorecard Introduction The prime 'objective' of this part is to generate a balanced scorecard for Motorola Mobility as the focus business unit for the following cases. The aims is to choose the company’s perspectives viz., customer, financial, internal processes, and learning and growth in order to generate the balanced scorecard based on any of the mentioned perspectives (Chavan, 2009). Balanced Scorecard Balanced scorecard refers to a strategic management and planning system that is applied widely in business as well as industry, government, and nonprofit making organizations across the world to align business activities to the strategy and vision of the organization; improve external and internal communications, and oversee organization performance against defined strategic goals. A balanced scorecard describes what performance is and measures whether the management is on the right path to attain the desired results (Brown & Blackmon, 2005). The vision and mission statements of the organization are translated into a comprehensive set of objectives as well as measures of performance that can be appraised and on the other hand, quantified. The balanced scorecard holds that the organization should be viewed from four perspectives, and collects data, develop metrics and analyze data relative to the defined perspectives. Learning and growth perspective Objectives Increase employee competence level Equip employees with new skills Sub-goals Introduce mentorship, training and learning programs targeting to increase employee competence Ensure employees are sent for further training after every three months and operation systems upgraded to ensure adaptability and use of new skills Introduce yearly vocational and work leave to encourage employee to pursue education and other skills Measurement Through annual performance appraisal The target To ensure 8 out of 10 workers are equipped with high skills to result high quality service Initiative Initiative will be to offer employees with opportunities to grow through training and providing flexible working programs that will allow vocational training and equipping with new skills Internal process perspective Objectives Improve production of Motorola Mobility devices Come up with innovative products every year Sub-goals Increase production Motorola Mobility devices by 50% in the next three years Develop creative and innovation centers in all Motorola branches across the world Measurement will be through number of products produce sold in the market every year. Target Increase production of innovative products above the 100% Built creative innovative centers in every Motorola branch Initiative Will be to come up with innovation centers that will allow employees to experiment and come up with new product ideas. Motorola mobility will be grown to produce more products and more funds set aside for research and development. Customer perspective Objectives Increase customer satisfaction level Increase repeat purchases and referrals Sub-goals Increase high quality service by 40% within one year To create a buzz in social media through viral marketing Target Ensure every customer served has a memorable experience to trigger a referral Measurement Will be through annual market share increase or growth Initiative Will comprise of a comprehensive marketing and promotional campaign to increase consumer awareness and promote the company’s products Use offers and promotional sales to increase the customer base The financial perspective Objectives Increase the company’s market share in Asian pacific region Increase the company’s profitability Sub-goals Penetrate more international markets by 7% within 2 years. Increase Motorola mobility profit margin by 13 % in 2 years. The measurement Will be through measurement of annual profitability growth The target To increase the market share by 3% in 3 years The initiatives Includes new product development and improving existing products to meet the current needs of the customers in new markets. The company will target to encourage word of mouth viral marketing through memorable customer experiences. Change Plan Orientation The entire Motorola Group is involved in the change plan. The company has got a strong manufacturing capacity and it will be a lot easier to take advantage of new partnerships or ventures. The product lines will be grown using its resource capability backed by the partners’ strengths. The company through its partners can create a competitive edge to keep off rivals in certain markets that are may look expensive to invest. Diversification aims to reach put to different kinds of needs in various markets across the globe. Diagnose Motorola Inc. is split into Motorola Solutions and Motorola Mobility and the company has to focus in growing mobile devices to a competitive level. The company’s business culture is founded on absolute integrity and respect for other players in the industry as well as customers. The culture revolves around consumer satisfaction. The company is focused on reclaiming its position as one of the top performers in the technology industry. Design Motorola Inc. has to take a leading role in innovation and new product development in order to compete effectively in the market. More mentorship programs and independent innovative groups have to be developed in order to encourage coming up with new ideas through experimentation (Belohlav, 1993). More funds have to be assigned for research and development to encourage employees to engage in research and come up with new product ideas. Motorola Inc. has to take advantage of disruptive technologies to come up with products that will satisfy the current needs of the customers. Planning The company requires a period of one year to carry out a force field analysis. During this period the company will look at; discuss and examine all forces that are for and against the proposed change. Force Field Analysis was put forward by Kurt Lewin and has been widely applied in decision making especially where planning and implantation of change is required in organization. In the Motorola case where the company will engage in strategic partnerships and joint ventures, it is crucial to look at driving forces and opposing forces of the strategic option. DRIVING Forces Available resources-4 Production capacity-4 Competent workers-3 Available markets-3 Total -14 RESTRAINING FORCES New market constraints-3 Legal and regulatory barriers-2 Labour force constraints-3 Environmental impact of electronic products-1 Cultural barriers-1 Disruption-1 Total = 11 The driving forces have more strength than the opposing forces hence Motorola has a high change of succeeding in strategic partnerships or joint ventures. The driving forces score is 14 while the constraining forces score is 11. The company has to find equilibrium between the restraining and driving forces. The interaction between the opposing forces has to be balanced. The company workers will have to learn new cultures and adapt to new environments in order to comfortably work in the new markets. The pros and cons of the future change have to be put into consideration to avoid resistance from within the company and outside the company. Effective communication will be needed to educate the workers on the importance of change in order to grow the company to a higher level. The time for the implementation will be determined by the kind of forces that the company will have to deal with. Implementation The company has to go through unfreezing the current situation in order to allow the change to take place and freezing to solidify the new standards and culture before evaluating the results of the change plan. Unfreezing The normal operations of the company have to be interfered with in order to create room for change. During the unfreezing stage all the forces against the change have to be dealt with and agents of change given the mandate to drive the change. The workers have to be fully informed about the strategic option being implemented and encouraged to take part in making sure the strategy is a success. The management has to look at the legal requirements needed in order to facilitate successful partnerships. The employees have to be prepared to work in new environments with different cultures. Changing The human resource department will ensure that employees are provided with the necessary equipment and skills to enable them to perform their functions in the organization and work in new work environments. Top managers have to be ready to be posted to other parts of the world as part of their function. Employees have to be ready for disruption as new changes are implemented to normal operations in the company. Freezing The operations of the organization are synchronized to resume normal operations. The employees will be trained on providing high quality services to gain a competitive edge in the new markets (Finkelstein, 2006). Incentives have to be provided for innovative employees in order to encourage them to work in new environments. All the stakeholders have to be part of the change process for it to be a success. The finance department will increase marketing and advertising budget to support strong promotions to encourage people to buy Motorola products in new markets (Brown & Blackmon, 2005). The company will organize trade fairs to introduce its products into new markets and further create awareness of its new strategy in the market and the importance to all stakeholders. Promotional programs have to be intensified to create a reputation for Motorola products and encourage sales in new markets. The sales people have to be given incentives to make more sales. Evaluation Motorola Inc. has to take stock of the impact of change maybe after two years to see whether it has attained the desired results. Implementing the option may lead to some employees to leave the company and seek opportunities elsewhere and high costs of implementing some of the programs. Appraisal of the change plan has to be done after every six months to evaluate the progress and consider further plans to be carried out. Functional strategies The company will work with the local community in the new markets to develop community goals that improve the social welfare of the society. The strategic partnerships or ventures will ensure compliance to environmental regulation and rules to avoid clashing with lobby groups. Under the corporate social responsibility, the company will carry out a sensitization program that encourages the community on proper disposal of electronic gadgets to reduce environmental degradation. Proper disposal of refuse or electronic material is very important. The company can provide points of collection for used phones and other gadgets that can be recycled to make other useful products. The company with its partners will take part in charitable activities such as sponsoring community football teams and getting involved in healthy living initiatives to encourage people to exercise and eat healthy foods. Building of roads and schools within the area of operation will boost the image of the company and endear it to the people hence making some to be potential customers. Motorola Inc. has to make sure that it adheres to any legal obligation to avoid bad reputation that may injure its brand. Workers will be hired on the basis of their competence and experience. References Barney, M. (2002, May).Motorola’s second generation, In Six Sigma Forum Magazine 1, (3): 13-16 ASQ. Belohlav, J. A. (1993). Quality, strategy, and competitiveness, California Management Review, 35(3): 55. Brown, S., & Blackmon, K. (2005). Aligning manufacturing strategy and business‐level competitive strategy in new competitive environments: the case for strategic resonance, Journal of Management Studies, 42(4), 793-815. Finkelstein, S. (2006). Why smart executives fail: Four case histories of how people learn the wrong lessons from history. Business History, 48(2): 153-170. Gartner. (2015). Gartner Outlines 10 Consumer Macro Trends to Impact Technology, Media and Service Providers for Next 10 Years. Retrieved September 17th, 2015, from Gartner: http://www.gartner.com/newsroom/id/1984415 Gottinger, H. (2013). Innovation, Technology and Hyper-competition: Review and Synthesis, Business and Economics. Griffin, R. W., & Pustay, M. W. (2005). International business: A managerial perspective, London: Pearson Prentice Hall. IDC: Smartphone Market Share 2015, 2014, 2013, and 2012. (n.d.). Retrieved from http://www.idc.com/prodserv/smartphone-market-share.jsp Ireland, R. D., Hoskisson, R. E., & Hitt, M. A. (2008). Understanding business strategy: Concepts and cases. Mason, OH: South-Western Cengage Learning. Lee, I. (2013). Mobile services industries, technologies, and applications in the global Economy, Hershey, PA: Information Science Reference. Pahl, N., & Richter, A. (2008). SWOT Analysis. Idea, Methodology And A Practical Approach, New Jersey: Grinn Manual, M. S. D. (1989). Motorola Semiconductor Products Inc., Phoenix, AZ. Moorthy, R. S. (1998). Uncompromising integrity: Motorola's global challenge, Purdue University Press. Motorola Mobility President: Our Goal Is To Continue Making Great-Performing, Affordable Smartphones | Androidheadlines.com. (n.d.). Retrieved from http://www.androidheadlines.com/2015/02/motorola-mobility-president-goal-continue-making-great-performing-affordable-smartphones.html Paley, N. (2006). The manager's guide to competitive marketing strategies, London: Thorogood. Richardson, N. (2010). A quick start guide to mobile marketing: How to create a dynamic Campaign and improve your competitive advantage, London: Kogan Page. Transforming Global Information and Communication Markets. (2012). Cambridge, Mass: MIT Press Ltd. Seibert, K. W., Hall, D. T., & Kram, K. E. (1995). Strengthening the weak link in strategic executive development: integrating individual development and global business strategy, Human Resource Management, 34(4), 549-567. Shimizu, K., & Hitt, M. A. (2004). Strategic flexibility: Organizational preparedness to reverse ineffective strategic decisions, The Academy of Management Executive, 18(4), 44-59. Stone, R. A. (1996). Mission statements revisited. SAM Advanced Management Journal, 61(1), 31. Yoo, Y., Lee, J.N., & Rowley, C. (2008). Trends in mobile technology and business in the Asia-Pacific region. Read More