Balanced Score Card on-the-Go

A balanced scorecard will have very beneficial effects to the On-The-Go-Convenience-Store performance measurement. Currently the business division is not meeting the financial expectations, however focusing only on a financial metric may lead to a very myopic vision of the issue and therefore lead to the wrong decisions by the managers with other serious problems left overseen.

The organizational objective of the OTG-CS is be to increase profits and therefore to increase shareholders value for the owners of On-The-Go Ltd. To achieve those objective, a Balanced Scorecard model suggests to focus on four key perspectives: Financial, Customer, Internal Business Process and Learning and Growth. Eventually meeting the targets in those segments will determine an overall improvement in the company’s operations, better control of managers and therefore increase profitability for the company. Targets will be set by the VP of the convenience stores segment, relying on current economic data, historical trends, as well as regional managers forecasts.

I hereby present a balanced scorecard for stores’ general managers, however based on that, a balanced scorecard for regional managers could also be prepared, this last scorecard will rely heavily on performance of general managers and on the profitability of the stores. This will lead regional managers to keep close control of general managers performance and therefore improve overall profitability. When choosing the metrics it is necessary to rely on Vroom’s expectancy theory, trying to set metrics and objects that are high on expectancy, instrumentality and valence. The balanced scorecard should be used also as a tool to determine general and regional managers salaries, by calculating a weighted average of the results achieved in each metric. Weights should give preference to the customer and financial perspective, however also internal business and learning and growth should represent a sizeable portion of salary,...