Telstra Corporation is one of the largest telecommunication company in Australia. It builds and operates telecommunication networks and mobile and internet access lines and indulges in various consumer goods that includes the mobile phones, home phones, mobile devices etc. The company has recently introduced the concept of balance scorecard to incorporate materiality issues into the overall sustainable performance and accountability (Alexander, 2016).
The long-term goals of the company will include to develop such technology that would help in connecting the people and empower them, the aim of the company is to include the social and environmental considerations into the business in such ways that it would create value for the stakeholders of the company (Choy, 2018). It is opting for sustainable growth and development of the company in such a way that the stakeholders get the best results. The stakeholders in case of Telstra will include the investors who have invested into the company, the employees, the consumers, the suppliers, the government and any such party that is dependent on the company directly or indirectly.
Various perspective that can be included in balance scorecard and the various specific objectives that can be included in that-Financial Perspective- In case of this the company can include large scale cost optimization, improving the overall asset utilization and improving the overall customer value and creating new revenue horizons. The overall aim would be increase the profit considerably that would help in increasing the overall return to the shareholders of the company, and the dependent parties (Farmer, 2018).
Customer Perspective – In case of the customers the company includes improving the overall quality of goods, prices of the goods, availability of the products, improving the overall brand value. The main aim of this is to include the overall customer growth in the balance scorecard and providing the customer with new items again and again.
Internal Perspectives- The internal perspective in case of the customers will include improving the overall performance management, improving the customer management, including innovation process and being compliant with the various social and regulatory practices that would include compliance with respect to corporate social accountability and related standards (Werner, 2017). The aim would be to increase the overall efficiency of the performance of the company and that would help in reduction of wastage and generating more profit in the long run.
The strategy map is a tool being introduced by the creators of the Balanced Scorecard technique, Robert S Kaplan and David P Norton. It helps the organization in describing and communicating the strategies within the organization (Linden & Freeman, 2017). It forms the base for developing the financial and non-financial Balanced Scorecard measures which can later be used for monitoring the execution and implementation of the strategies. The strategy map of Telstra has been shown below:
The Key performance indicators would include the increase in the overall net income of the company, the increase in the share prices of the company. It shall also include the growth of the comparison to the past years. It can also be deciphered from the overall movement of the share prices of the company, the movement in the value of the investments that are done by the company. All such information is present in the financial statements of the company and decisions can be taken based on that(Dumay & Baard, 2017). The key performance drivers on the other hand will include different aspect of the overall business that are directly related to the overall results and outcomes that the company generates. In case of the given company the key performance drivers can be defined as processes like introduction of a new product, starting a new marketing campaign, changes in the methods of valuation of assets, and making new investments that would help in improving the overall growth of the company that would be indicated through key performance indicators for the company(Kewell & Linsley, 2017).
Critical Analysis of the issues concerned with the implementation of the balance scorecard-
- The overall metrics are very poorly defined, they are not very relevant and clear. These metrics needs to be collected at ideal frequency for taking appropriate decisions.
- There may be lack in the efficient data collecting and reporting the same. The companies do not focus on other metrics that much but focuses more on financial metrics and thus the overall balance is not established for the company and this is one of the major disadvantage associated with the implementation of the balance scorecard.
- The companies need to make sure that there is proper training given to implement the balance scorecard. Many companies are not able to reap in the proper benefits that are associated with implementation of the balance scorecard(Sithole, et al., 2017).
- One of the major criticism that is involved in case of balance scorecard is that there is lot of focus on internal focus and to overcome this it is important that proper balance between the internal and external focus should be established.
- It is not appropriate for all the industries to implement the balance scorecard, as it is not suitable for all the companies.
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