Harr emphasized in class on friday, november 14, 2014 that the balanced scorecard. Balanced scorecard in higher education applied case study on arab academy for science, technology and maritime transfer dr. A balanced scorecard htt220 a balanced scorecard coalignment the balance scorecard in important for the fact that it helps a business see where they are in the scheme of things. The balanced scorecard implementation at southwest airlines has gone through a series of iterations and they are currently in their 3rd generation. Creating an excelbased balanced scorecard to measure the. The airline industry is mired with numerous challenges, from critical flight safety issues to seemingly small issues related to inflight service which also can snowball into a major hassle.
What follows, provides guidance and advice on the development and implementation of a balanced scorecard for those organisations considering the introduction of a. This is the balanced scorecard view of strategy map. Southwest airlines swa, based in dallas, operates more than 4,100 flights daily to more than 100 destinations. Balanced scorecard strategic management airlines scribd. Balanced scorecard is a set of criteria that allows managers a holistic view of the organization. Definition and concept an approach to the provision of information to the management to assist with. Apr 16, 20 this video was uploaded from an android phone. Balanced scorecard and strategic analysis of southwest airlines essay sample. Southwest airlines puts employees first business insider. Ivan cahue balanced scorecard april 22, 2017 the balanced scorecard i found is for southwest airlines.
Dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit. We partner with organizations to execute strategy, transfer knowledge, and build capabilities to deliver results fast. Balanced scorecard in higher education applied case study. Airlines balanced scorecard metrics pack the pack includes 5 airlines metrics. Specific, measurable, actionable, reliable and timebound quantitative measures like key performance indicators can be used to evaluate the performance of various organizations. Managers are expected to check and develop each persons understanding of the following. May 10, 2006 southwest airline strategy implementation executive summary an analysis of southwest airlines strategic controls has been conducted in order to determine if these controls match, and or enhance, the companies design and strategy. Airlines balanced scorecard metrics pack strategy2act.
The company was incorporated in 1967 and is headquartered in dallas, texas. Real world how southwest airlines developed its balanced. Southwest airlines balanced scorecard researchomatic. Balanced scorecard and strategic analysis of southwest airlines essay by nilsla, university, bachelors, a, may 2006 download word file, 9 pages download word file, 9 pages 4. The information included is fictional and is provided to simply demonstrate the process. This website contains forwardlooking statements within the meaning of the private securities litigation reform act of 1995, section 27a of the securities act of 1933, as amended, and. Escuela politecnica del ejercito estrategia competitiva. Students learn how the balanced scorecard approach helps southwest airlines stay competitive learn more about the wiley managerial. Apr 12, 2017 what united could learn from balanced scorecard. I am very pleased to report another strong performance for 2018.
The nations largest carrier in terms of originating domestic passengers. Step 4 your actual performance for each metric is recorded in this column. Balanced scorecard basics communicat business systems. One of the reasons why it is considered a top company is its on time performance. Feb 10, 20 background definition of balanced scorecard the balanced scorecard is a tool that translates an organizations mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system. Hard copies of annual reports may be available and can be requested by contacting investor relations.
How to develop a balanced scorecard into a strategy map. Free essays on balanced scorecard of airline industry. Anapproach to a balanced scorecard for united way organizations. Bsc southwest airlines b1 free download as powerpoint presentation. I present in this report a balanced scorecard for lucky air that translates the airlines mission and strategy into a comprehensive set of performance measures.
Creating an excelbased balanced scorecard to measure the performance of colleges of agriculture paper presented at american agricultural economics association annual meeting long beach, ca july 23 26, 2006 i. Traveling by airplane can be a stressful situation. Traditional performance measurement systems place special emphasis on. Southwest s overall strategy centers around the theme of operating efficiency. Southwest airlines could have followed the lead of its giant competitors and simply tried to beat them on cost. The scorecard tracks seven different measurements from dot complaints to onetime arrivals to come up with the rankings. Balanced scorecard for southwest airline financial objectives. Balance scorecard featuring southwest airlines youtube.
Since southwest airlines is a service company, customer satisfaction. Linking the balanced scorecard to strategy strimgroup. Balanced scorecard definition strategic management. This system provides feedback on internal business processes and external outcomes to continually improve organizational performance and results. Monitor airlines performance with these kpis in excel specific, measurable, actionable, reliable and timebound quantitative measures like key performance indicators can be used to evaluate the. However, comingup with a good strategy is not always simple. The methodology of balanced scorecard has been developed to allow an efficient integration of many variables that must be considered when measuring the performance of companies. Jan 15, 2015 wall street journals the middle seat released its yearly scorecard for the 8 biggest us airlines. The balanced scorecard strategic planning model as a. Several years ago, we introduced the concept of a balanced scorecard. Robert kaplan and david norton created the balanced scorecard approach in the. Using its lowcost, passenger friendly, pointtopoint operational strategy, southwest has been able to sustain considerable growth year after year and remain profitable for 33 straight years. Balanced scorecard and strategic analysis of southwest.
It allows a company to look at see where they are rated amongst the others in their industry and see where. We suggest a similar balanced scorecard for air india. Inside airlines struggle to balance profitability and. Video watch the latest explainer videos, case study discussions, and whiteboard sessions, featuring ideas and practical advice for leaders. Sep 28, 2011 students learn how the balanced scorecard approach helps southwest airlines stay competitive learn more about the wiley managerial accounting video series. Keller southwest airlines promo at southwest airlines, employees come first. Initial southwest airlines service desk balanced scorecard step 1 six critical performance metrics have been selected for the scorecard. One increasingly popular framework to combine these qualities is the balanced scorecard bsc, and specifically the more recent incarnation, the strategy map.
Here is the balanced scorecard view of the southwest airlines. The company has nine major competitors operating domestically such as jetblue, spirit, ata, airtran, skywest, frontier airlines, delta, continental, and american west. A report on the balanced scorecard for yunnan lucky air. Southwest airlines has been a strong growth company over the last 35 years. Balanced scorecard example the following is an example of how one might develop a balanced scorecard.
Smart companies plan their development for both the near and far future. Southwest airlines field tech business practice case study. And even when you have a solid strategy, trying to measure your success can be even more complicated. Anytown hospital has just finished a twoday retreat where they revised and updated their mission and vision statements and drafted a strategic plan. After initial discussions with the management of the airlines, my team has recommended the use of a balanced scorecard to monitor its performance. Southwest airlines balanced scorecard southwest airlines balanced scorecard introduction southwest boasts the best ontime record, best baggage handling, and fewest customer complaints in the airline industry and won the industrys triple crown award for best airline. Positioning southwest airlines through employee branding.
Wall street journals the middle seat released its yearly scorecard for the 8 biggest us airlines. But financial measures tell the story of past events, an. A brief introduction to the balanced scorecard why do companies need business scorecards. Explore and explain how the balanced scorecard is implemented into a strategy map. Airlines balanced scorecard metrics template airlines. The four perspectives embodied in the balanced scorecard were linked together by a series of relatively simple questions and answers. Step 3 for each performance metric, the highest and lowest. Then, working with different groups in your organisation you can engage them in the conversation about what part of the final measure they will deliver, and how. Southwest airlines is one of the most profitable airline companies nowadays. How southwest airlines used metrics to reach a higher. The balanced scorecard approach discussed in this paper recognizes the need for a variety ofkinds ofperformance information to meet the needs ofthe various internal and external constituencies. Upward airlines and clearpoint strategy clearpoint strategy. Inside airlines struggle to balance profitability and performance august 15, 2017 by nicolas boutin, pranay jhunjhunwala, dirkmaarten molenaar, patricio ramos, and fernando bosch. One increasingly popular framework to combine these qualities is the balanced scorecard.
Southwest airlines balanced scorecard framework financial strategic theme. The program involves a simple batch file system where the user creates a data. Balanced scorecard for southwest airline financial. It could have benchmarked best practices and imitated them. Metricnets service desk balanced scorecard the balanced scorecard step 1 six critical performance metrics have been selected for the scorecard step 2 each metric has been weighted according to its relative importance step 3 for each performance metric, the highest and lowest performance levels in the benchmark are recorded step 4 your actual. If you are not transferred, please click here to continue. Air india is the prime and oldest airline of india.
The first thing rachel did was create a new scorecard called upward airlines corporate. Balance scorecard also provides an organization with feedbackof both the internal business processes and external outcomes,which allows for continuous improvement of strategicperformance and. Jan 28, 20 balance scorecardthe balanced scorecard is a management system that enablesorganizations to clarify their vision and strategy and translatethem into action. Operating efficiency objectives profitability more customers fewer planes market value seat revenue plane lease cost 30% cagr 20% cagr 5% cagr measurement target initiative fewer planes customer internal flight is on time lowest prices more customers flight is on time lowest prices faa on time. Rachel chose clearpoint strategy as the hub for all of her information so that she can focus time on solving problems for her team instead of endlessly formatting reports. Southwest airlines balanced scorecard southwest airlines balanced scorecard introduction southwest boasts the best ontime record, best baggage handling, and fewest customer complaints in the airline industry and won the industrys triple crown award for best airline five times in a row from 199296. My experiences as a balanced scorecard practitioner with a large canadian company taught me that tremendous results are possible with the tool, but to attain. Interestingly, david neelemanfounder of jetblue in 2001was a former southwest airlines executive and michael olearyceo of ryanair dublin, irelandspent several weeks in 1991 at southwest airlines headquarters in dallas, texas learning the southwest. How southwest airlines developed its balanced scorecard analysis southwest airlines set operating efficiency as its strategic theme. Check out how your favorite airline scores on the 20 airline scorecard. Southwest airlines was founded in 1960s, by herb kelleher and rolling king.
It is the state carrier which currently connects to rest of the world such as the americas, asia, europe, etc. Balanced scorecard is a management system that enables organizations to translate the vision and strategy into action. The purpose of out study is about how to develop a model from balanced scorecard to strategy map. Measures that drive performance and a 1996 book, the balanced scorecard.
And describe how southwest airlines utilized both balanced scorecard and strategic map to execute its mission, vision, and strategy as followings. A strategy map is a graphic portrayal of an organizations strategy showing how various strategic initiatives will lead to customer results and, in turn, to financial results if the. The company has nine major competitors operating domestically such as jetblue, spirit, ata, airtran, skywest, frontier airlines. The airline puts employee happiness above customer satisfaction. Southwest service desk scorecard scorecard step 1 six critical performance metrics have been selected for the scorecard. Balanced scorecard stepbystep volta river authority. We will choose ericsson as our case study, so the situation of. Operating efficiency objectives profitability more customers fewer planes market value seat revenue plane lease cost 30% cagr 20% cagr 5% cagr measurement target initiative fewer planes customer internal flight is on time lowest prices more customers flight.
It is headquartered at nariman point, mumbai in the air india. The balanced scorecard, alphabet of the modern management. The airline industry is mired with numerous challenges, from critical flight safety issues to seemingly small issues. The balanced scorecard focuses on factors that create longterm value traditional financial reports look backward reflect only the past. The balanced scorecard retains traditional financial measures. Southwest airlines is the fifth largest airline company in america, operating more than 2,150 flights per day and carrying over 44 million passengers a year. Kaplan and norton describe the innovation of the balanced scorecard as follows. Harr emphasized in class on friday, november 14, 2014 that the balanced scorecard was created by the same folks that created activity based costing. Monitor airlines performance with these kpis in excel. Balanced scorecard and strategic analysis of southwest airlines.
Core competency analysis an overview a clear identification and thorough understanding of an organizations core competencies is central to obtaining a competitive advantage. Introduction need for measurementstrategic planning, university of minnesota strategic planning effort ii. Similarly, customers of southwest airlines have different expectations of performance than the business and first class customers who fly british airways. This paper is aims to apply the balanced scorecard. Step 3 for each performance metric, the highest and lowest performance levels in the benchmark are recorded. Here is the balanced scorecard view of the southwest airlines strategy. Airlines balanced scorecard metrics template online kpi dashboard for management of kpis click to see more screenshots below. Balanced scorecard collaborative is a new kind of professional services. Although i love bitching about united airlines, this is really a pitch for balanced scorecard.
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