Whether it is a Strategic Plan for the longer term or a Business Plan for the shorter term, this complimentary template is sure to provide you sound guidance in capturing your organisational intent.
The Relationship between balanced Scorecard and Cost Reduction: An Empirical ...AI Publications
This research discusses and analyzes the relationship between balanced scored card and cost reduction in public sectors in Kurdistanregion.The main of this study is to examine the relationship between balanced scorecard and cost reduction in Public sectors in Kurdistan. The quantitative method used in order to analyze the present study. A random sampling was carried out in different locations in the ministry of planning in Erbil. A total of 800 questionnaires were distributed in Kurdistan, however 630 questionnaires were received and being completed properly and the data were collected through in hard copies. The findings revealed that the first research hypothesis was supported which stated that there is a positive relationship between financial perspective and cost reduction in public sectors in Kurdistan. The second research hypothesis was rejected which stated that there is a positive relationship between customer perspective and cost reduction in public sectors in Kurdistan. The third research hypothesis was supported which stated that there is a positive relationship between internal business process perspective and cost reduction in public sectors in Kurdistan, and the fourth research hypothesis was rejected which stated that there is a positive relationship between innovation and learning perspective and cost reduction in public sectors in Kurdistan.
Whether it is a Strategic Plan for the longer term or a Business Plan for the shorter term, this complimentary template is sure to provide you sound guidance in capturing your organisational intent.
The Relationship between balanced Scorecard and Cost Reduction: An Empirical ...AI Publications
This research discusses and analyzes the relationship between balanced scored card and cost reduction in public sectors in Kurdistanregion.The main of this study is to examine the relationship between balanced scorecard and cost reduction in Public sectors in Kurdistan. The quantitative method used in order to analyze the present study. A random sampling was carried out in different locations in the ministry of planning in Erbil. A total of 800 questionnaires were distributed in Kurdistan, however 630 questionnaires were received and being completed properly and the data were collected through in hard copies. The findings revealed that the first research hypothesis was supported which stated that there is a positive relationship between financial perspective and cost reduction in public sectors in Kurdistan. The second research hypothesis was rejected which stated that there is a positive relationship between customer perspective and cost reduction in public sectors in Kurdistan. The third research hypothesis was supported which stated that there is a positive relationship between internal business process perspective and cost reduction in public sectors in Kurdistan, and the fourth research hypothesis was rejected which stated that there is a positive relationship between innovation and learning perspective and cost reduction in public sectors in Kurdistan.
The First 100 Days: A Planning Framework for the CEOMichael Cairns
New CEO's are frequently asked to provide a 100 day plan during an interview process. This is one example as to how I have approached this task. Read my blog post at Personanondata.com
Email if want a download copy: michael. cairns @ outlook.com
MGT 660 Strategic Management New
Just Click on Below Link To Download This Course:
https://www.coursetutor.us/product/mgt-660-strategic-management-new/
MGT 660 Strategic Management New
MGT 660 Full Course Discussions
MGT 660 Topic 1 DQ 1
Discuss how doing case analysis will help you develop skills needed to prepare recommendations for consideration in a Strategic Plan. What is a business model and how can it disrupt a company, industry and or both? Provide at least two examples.
MGT 660 Topic 1 DQ 2
These PowerPoint slides are intended to be taught in business class and explain the SWOT Analysis process to the students in the class about their own and about the companies with real examples.
August White Paper 1/2016: Find Your Center of Gravity - Four Cornerstones of...August Associates
Everybody has a plan until they get punched in the face, said the boxer Mike Tyson. How to stay on your feet in a rapidly changing business environment?
''The Strategic Performance Index is a leader hip assessment measuring organizational success across key areas of growth, viability and sustainability''
The First 100 Days: A Planning Framework for the CEOMichael Cairns
New CEO's are frequently asked to provide a 100 day plan during an interview process. This is one example as to how I have approached this task. Read my blog post at Personanondata.com
Email if want a download copy: michael. cairns @ outlook.com
MGT 660 Strategic Management New
Just Click on Below Link To Download This Course:
https://www.coursetutor.us/product/mgt-660-strategic-management-new/
MGT 660 Strategic Management New
MGT 660 Full Course Discussions
MGT 660 Topic 1 DQ 1
Discuss how doing case analysis will help you develop skills needed to prepare recommendations for consideration in a Strategic Plan. What is a business model and how can it disrupt a company, industry and or both? Provide at least two examples.
MGT 660 Topic 1 DQ 2
These PowerPoint slides are intended to be taught in business class and explain the SWOT Analysis process to the students in the class about their own and about the companies with real examples.
August White Paper 1/2016: Find Your Center of Gravity - Four Cornerstones of...August Associates
Everybody has a plan until they get punched in the face, said the boxer Mike Tyson. How to stay on your feet in a rapidly changing business environment?
''The Strategic Performance Index is a leader hip assessment measuring organizational success across key areas of growth, viability and sustainability''
At SnapDragon Associates, we have worked hard to become one of the most successful and most respected recruiting agencies in the Lumber and Building Materials industry. Our success is dedicated entirely to our hardworking team of awesome employees. This is who we are and we are excited to get to know who you are too!
During the Space Apps Challeng 2016, Supernova's Team has created a proof of concept of chain-mail presenting flat surfaces. This concept allows people and astronaut to wear standard electronic component. With both health monitoring or environment measurement, our proof of concept show the feasibility of wearable electronic clothes with four main advantages:
- CHEAP: Printed in 3D, each mail of the chain is suitable to carry a small electronic standard component such as a sensor or a led.
- ADJUSTABLE: An innovative inflatable system allows auto-adjusting of the clothes with the user and keep the sensors in contact with the skin.
- REPAIRABLE: An innovative design allow the change of each mail of the chain-mail regardless of its position.
In a near future we can imagine such a system being used by makers to design easy-to-make wearable electronic. We can also imagine commercial use for medical application (medical devices and health monitoring) and to build suit for harsh environement (Space, Radiation, Chemical...).
Know the basics of Balance Scorecard and its evolution. Also understand perspectives involved into BSC.
PS. The source of the document is as mentioned inside the document.
(Read the Theory in Action Balance Scorecard on page 124).Write .docxhoney725342
(Read the Theory in Action Balance Scorecard on page 124).
Write a 7 page paper in APA format.
The research paper should include the following sections. You will also need to create a sample Balance Scorecard to support your research and recommendations.
Cover page
Introduction – (Thesis statement and Purpose of paper)
Background – Background and History on the concept
Discussion – Discuss current issues, innovation, and future use. Support the topic with
any necessary sources. Be sure to include in-text citations.
Conclusion – Summary of main points
References – Formatted using APA
Theory in Action: The Balanced Scorecard
Robert Kaplan and David Norton point out that a firm’s methods of measuring performance will strongly influence whether and how the firm pursues its strategic objectives. They argue that effective performance measurement must be more than simple reliance on financial indicators; it must be a coherent and integral part of the management process. They proposed a method, the “balanced scorecard,” that they argue can motivate breakthrough improvements in product, process, customer, and market development. a The balanced scorecard (see Figure 6.6) emphasizes four perspectives the firm should take in formulating goals that target critical success factors and in defining measures:
1. Financial perspective. Goals might include such things as “meet shareholder’s expectations” or “double our corporate value in seven years.” Measures might include return on capital, net cash flow, and earnings growth.
2. Customer perspective. Goals might be to “improve customer loyalty,” “offer best-in-class customer service,” or “increase customer satisfaction.” Measures might include market share, percentage of repeat purchases, customer satisfaction surveys, and so on.
3. Internal perspective. Goals might include such things as “reduce internal safety incidents,” “build best-in-class franchise teams,” or “improve page 125inventory management.” Measures might include the number of safety incidents per month, franchise quality ratings, stockout rates, and inventory costs.
4. Innovation and learning perspective. Goals might include such things as “accelerate and improve new product development” or “improve employee skills.” Measures might include the percentage of sales from products developed within the past five years, average length of the new product development cycle, or employee training targets.
Kaplan and Norton acknowledge that the balanced scorecard model often has to be adapted to fit different markets and businesses, but many firms (including IBM, Philips Electronics, Apple, and Advanced Micro Electronics) in many different industries (including electronics, petrochemicals, and health care) are finding the balanced scorecard useful. b. In fact, a 2002 survey by Bain & Company found that approximately 50 percent of Fortune 1,000 companies in the United States and 40 percent in Europe use some version of the balanced scorecard.
a. R ...
The Role of Balanced Scorecard for Measuring Competitive Advantage of Contain...inventionjournals
The Balanced Scorecard (BSC) is a valuable management system which is used for different companies to elucidate and translate their strategies into execution; nevertheless the BSC has not been planned for container terminals and ports users' satisfaction in a great extent. This article addresses the issue of deploying BSC as an accepted management tool for measuring competitive advantage of ports users with a focus on container terminals. Use of balanced scorecard helps port and terminal managers to understand better strategic vision as well as their own contribution to implementation of strategic goals. The BSC can be used by the companies which are responsible for handling container terminals operation in order to achieve value, controlling core competencies, satisfying the terminal's users or customers and offering bonus to the terminal's shareholders
Branding PlanWho are weWhat is our focus How wil.docxjackiewalcutt
Branding Plan
Who are we?
What is our focus?
How will we accomplish this?
i
When do we plan to meet our goals?
Bayou STEM Educational Group is a firm dedicated to providing quality
STEM experiences and resources for various educational entities.
Our motto is to "bridge academic gaps through STEM.
We aim to:
create a clear mission and vision.
increase digital presence.
promote company's Educational and STEM Specialists.
increase interactions with STEM organizations.
Within
one day
Within
one week
Within
one year
Create a clear
mission and vision
Increase digital
presence
Promote company's Educational
and STEM Specialists
Increase interactions with
STEM organizations.
Research mission and
vision statements of
similar companies.
Create accounts on the
top 5 social media outlets.
Create a social media
schedule.
Plan focus for posts and
create post content.
Create a website
Publish blogs catered to
specialists.
Record podcasts led by
specialists.
Promote specialists on
digital platforms.
.
Share posts from other
organizations.
Publish articles in STEM
journals/magazines.
Meet with organizations in
various settings.
What are our goals?
Within one
month
Dr. Tyler Zerwekh
Capella University
BY:
Amar Galco.
Scorecard Presentation
Content’s
Introduction to Kine Medical center.
Mission and Vision.
Balanced Scorecard.
The Four Elements of the Balanced Scorecard
Financial Perspective
Internal Perspective
Learning and Growth
Customer Perspective
Recommendations
References
Introduction
Kine’s Medical Center has struggled over the years to improve on the quality of care that it provides. In the current project, we aim to develop a balanced scorecard, that will enable the company pursue its ambition. Moreover, the system has a direct association with vision, mission and strategy of the company which is beneficial for the organization.
Mission and vision.
The kind of service that patient's receive does not only determine the level of patient outcome, but also the quality of care delivered by providers. We always try our best.
Each patient is treated with kindness and compassion through fairness, honesty and integrity.
All workers are treated with respect, dignity, and equality.
An organization can be considered successful if it can adequately address the needs of its customers, Kine is always applying more efforts for better enhancement of the healthcare organization.
Balanced Scorecard.
A balanced scorecard is a performance metric used in strategic management to identify and improve various internal functions of a business and their resulting external outcomes.
Balanced scorecard has four major elements for
assessing organizational performance.
These facets include-
Financial.
Internal perspective,
Learning and Growth,
and Customer perspective. (Kaplan & Norton, 1998).
The above men.
S COMPANIES AROUND THE WORLD transform themselves for c.docxgertrudebellgrove
S COMPANIES AROUND THE WORLD transform themselves
for competition that is based on information, their abil-
ity to exploit intangible assets has become far more
decisive than their ability to invest in and manage
physical assets. Several years ago, in recognition of this change,
we introduced a concept we called the balanced scorecard. The
balanced scorecard supplemented traditional fi nancial measures
with criteria that measured performance from three additional
perspectives – those of customers, internal business processes,
and learning and growth. (See the exhibit “Translating Vision
and Strategy: Four Perspectives.”) It therefore enabled compa-
nies to track fi nancial results while simultaneously monitoring
progress in building the capabilities and acquiring the intangible
assets they would need for future growth. The scorecard wasn’t
Editor’s Note: In 1992, Robert S. Kaplan and
David P. Norton’s concept of the balanced
scorecard revolutionized conventional
thinking about performance metrics. By
going beyond traditional measures of
fi nancial performance, the concept has
given a generation of managers a better
understanding of how their companies are
really doing.
These nonfi nancial metrics are so valu-
able mainly because they predict future
fi nancial performance rather than simply
report what’s already happened. This
article, fi rst published in 1996, describes
how the balanced scorecard can help
senior managers systematically link current
actions with tomorrow’s goals, focusing
on that place where, in the words of the
authors, “the rubber meets the sky.”
Using the Balanced Scorecard
as a Strategic Management System
by Robert S. Kaplan and David P. Norton
A
MANAGING FOR THE LONG TERM | BEST OF HBR | January–February 1996
150 Harvard Business Review | July–August 2007 | hbr.org
R
o
b
e
rt
M
e
g
an
ck
1284 Kaplan.indd 1501284 Kaplan.indd 150 6/7/07 10:51:38 AM6/7/07 10:51:38 AM
MANAGING FOR THE LONG TERM | BEST OF HBR | Using the Balanced Scorecard as a Strategic Management System
152 Harvard Business Review | July–August 2007 | hbr.org
a replacement for fi nancial measures;
it was their complement.
Recently, we have seen some compa-
nies move beyond our early vision for
the scorecard to discover its value as the
cornerstone of a new strategic manage-
ment system. Used this way, the score-
card addresses a serious defi ciency in
traditional management systems: their
inability to link a company’s long-term
strategy with its short-term actions.
Most companies’ operational and
management control systems are built
around fi nancial measures and targets,
which bear little relation to the com-
pany’s progress in achieving long-term
strategic objectives. Thus the emphasis
most companies place on short-term fi -
nancial measures leaves a gap between
the development of a strategy and its
implementation.
Managers us ...
S COMPANIES AROUND THE WORLD transform themselves for c.docxpoulterbarbara
S COMPANIES AROUND THE WORLD transform themselves
for competition that is based on information, their abil-
ity to exploit intangible assets has become far more
decisive than their ability to invest in and manage
physical assets. Several years ago, in recognition of this change,
we introduced a concept we called the balanced scorecard. The
balanced scorecard supplemented traditional fi nancial measures
with criteria that measured performance from three additional
perspectives – those of customers, internal business processes,
and learning and growth. (See the exhibit “Translating Vision
and Strategy: Four Perspectives.”) It therefore enabled compa-
nies to track fi nancial results while simultaneously monitoring
progress in building the capabilities and acquiring the intangible
assets they would need for future growth. The scorecard wasn’t
Editor’s Note: In 1992, Robert S. Kaplan and
David P. Norton’s concept of the balanced
scorecard revolutionized conventional
thinking about performance metrics. By
going beyond traditional measures of
fi nancial performance, the concept has
given a generation of managers a better
understanding of how their companies are
really doing.
These nonfi nancial metrics are so valu-
able mainly because they predict future
fi nancial performance rather than simply
report what’s already happened. This
article, fi rst published in 1996, describes
how the balanced scorecard can help
senior managers systematically link current
actions with tomorrow’s goals, focusing
on that place where, in the words of the
authors, “the rubber meets the sky.”
Using the Balanced Scorecard
as a Strategic Management System
by Robert S. Kaplan and David P. Norton
A
MANAGING FOR THE LONG TERM | BEST OF HBR | January–February 1996
150 Harvard Business Review | July–August 2007 | hbr.org
R
o
b
e
rt
M
e
g
an
ck
1284 Kaplan.indd 1501284 Kaplan.indd 150 6/7/07 10:51:38 AM6/7/07 10:51:38 AM
MANAGING FOR THE LONG TERM | BEST OF HBR | Using the Balanced Scorecard as a Strategic Management System
152 Harvard Business Review | July–August 2007 | hbr.org
a replacement for fi nancial measures;
it was their complement.
Recently, we have seen some compa-
nies move beyond our early vision for
the scorecard to discover its value as the
cornerstone of a new strategic manage-
ment system. Used this way, the score-
card addresses a serious defi ciency in
traditional management systems: their
inability to link a company’s long-term
strategy with its short-term actions.
Most companies’ operational and
management control systems are built
around fi nancial measures and targets,
which bear little relation to the com-
pany’s progress in achieving long-term
strategic objectives. Thus the emphasis
most companies place on short-term fi -
nancial measures leaves a gap between
the development of a strategy and its
implementation.
Managers us.
S COMPANIES AROUND THE WORLD transform themselves for c.docxaryan532920
S COMPANIES AROUND THE WORLD transform themselves
for competition that is based on information, their abil-
ity to exploit intangible assets has become far more
decisive than their ability to invest in and manage
physical assets. Several years ago, in recognition of this change,
we introduced a concept we called the balanced scorecard. The
balanced scorecard supplemented traditional fi nancial measures
with criteria that measured performance from three additional
perspectives – those of customers, internal business processes,
and learning and growth. (See the exhibit “Translating Vision
and Strategy: Four Perspectives.”) It therefore enabled compa-
nies to track fi nancial results while simultaneously monitoring
progress in building the capabilities and acquiring the intangible
assets they would need for future growth. The scorecard wasn’t
Editor’s Note: In 1992, Robert S. Kaplan and
David P. Norton’s concept of the balanced
scorecard revolutionized conventional
thinking about performance metrics. By
going beyond traditional measures of
fi nancial performance, the concept has
given a generation of managers a better
understanding of how their companies are
really doing.
These nonfi nancial metrics are so valu-
able mainly because they predict future
fi nancial performance rather than simply
report what’s already happened. This
article, fi rst published in 1996, describes
how the balanced scorecard can help
senior managers systematically link current
actions with tomorrow’s goals, focusing
on that place where, in the words of the
authors, “the rubber meets the sky.”
Using the Balanced Scorecard
as a Strategic Management System
by Robert S. Kaplan and David P. Norton
A
MANAGING FOR THE LONG TERM | BEST OF HBR | January–February 1996
150 Harvard Business Review | July–August 2007 | hbr.org
R
o
b
e
rt
M
e
g
an
ck
1284 Kaplan.indd 1501284 Kaplan.indd 150 6/7/07 10:51:38 AM6/7/07 10:51:38 AM
MANAGING FOR THE LONG TERM | BEST OF HBR | Using the Balanced Scorecard as a Strategic Management System
152 Harvard Business Review | July–August 2007 | hbr.org
a replacement for fi nancial measures;
it was their complement.
Recently, we have seen some compa-
nies move beyond our early vision for
the scorecard to discover its value as the
cornerstone of a new strategic manage-
ment system. Used this way, the score-
card addresses a serious defi ciency in
traditional management systems: their
inability to link a company’s long-term
strategy with its short-term actions.
Most companies’ operational and
management control systems are built
around fi nancial measures and targets,
which bear little relation to the com-
pany’s progress in achieving long-term
strategic objectives. Thus the emphasis
most companies place on short-term fi -
nancial measures leaves a gap between
the development of a strategy and its
implementation.
Managers us ...
2. 1
Introduction
The balanced scorecard was created by Robert Kaplan and David Norton in the early
1990’s to assist managers with strategic non-financial performance based measurement tools.1
“The balanced scorecard is a strategic planning and management system that is used in business
and industry, government, and nonprofit organizations.”2 It purpose is to align business
activities with the vision and strategy of an organization, improve communication both internally
and externally, and monitor an organizations performance against its strategic goals.3
Originally named the Balanced Business Scorecard, in 1992 Kaplan and Norton
introduced the idea of combining financial and non-financial (customer, internal business, and
innovation and learning) perspectives in a single performance scorecard model.4 Later the word
“Business” was omitted from the model making it what it is now commonly known as, the
Balanced Scorecard.5 In 1996 their book, The Balanced Scorecard: Translating Strategy into
Action, they re-classified two of the four original perspectives from the 1992 article. The
Internal business perspective was re-labelled Internal business processes, with the addition of
the Innovation element, and the Innovation and learning perspective was re-labelled Learning
1 Balanced Scorecard Institute,a Stragety Management Group . 2014. Resources, About the Balanced Scorecard.
Accessed June 10, 2014.
https://balancedscorecard.org/bscresources/aboutthebalancedscorecard/tabid/55/default.aspx
2 Balanced Scorecard Institute,a Stragety Management Group . 2014. Resources, About the Balanced Scorecard.
Accessed June 10, 2014.
https://balancedscorecard.org/bscresources/aboutthebalancedscorecard/tabid/55/default.aspx
3 Balanced Scorecard Institute,a Stragety Management Group . 2014. Resources, About the Balanced Scorecard.
Accessed June 10, 2014.
https://balancedscorecard.org/bscresources/aboutthebalancedscorecard/tabid/55/default.aspx
4 Hoque, Zahirul.March 2014."20 years of studies on the balanced scorecard:Trends,accomplishments,gaps and
opportunities for future research." British Accounting Review. Vol. 46 Issue1,p33-59. 27p.
5 Hoque, Zahirul.March 2014."20 years of studies on the balanced scorecard:Trends,accomplishments,gaps and
opportunities for future research." British Accounting Review. Vol. 46 Issue1,p33-59. 27p.
3. 2
and growth, with the additional element of growth and removal of the innovation element.6
Their 1996 version of the balanced scorecard differed from the 1992 version by containing
outcome measures and the performance drivers of outcomes that were linked in a cause-and-
effect relationship, making the performance measurement system a feed-forward control system,
or a control method in which a correcting method is applied before information is disseminated
externally.7 This method outlined the causal relationships of:
1. Measures of organizational learning and growth
2. Measures of internal business processes
3. Measures of the customer perspective and,
4. Financial measures”.8
By 2001 Kaplan and Norton published another book, The Strategy-focused Organization:
How Balanced Scorecard Companies Thrive in the New Competitive Environment. This
publication introduced the concept of a strategy map for the purpose of translating a business’s
strategy into operational terms, creating strategic awareness, making strategy a continual
process: planning and budgeting, feedback and learning, and mobilizing change through
executive leadership.9
Three years later in 2004 the book, Strategy Maps: Converting Intangible Assets into
6 Hoque, Zahirul.March 2014."20 years of studies on the balanced scorecard:Trends,accomplishments,gaps and
opportunities for future research." British Accounting Review. Vol. 46 Issue1,p33-59. 27p.
7 Hoque, Zahirul.March 2014."20 years of studies on the balanced scorecard:Trends,accomplishments,gaps and
opportunities for future research." British Accounting Review. Vol. 46 Issue1,p33-59. 27p.
8
Hoque, Zahirul.March 2014."20 years of studies on the balanced scorecard:Trends,accomplishments,gaps and
opportunities for future research." British Accounting Review. Vol. 46 Issue1,p33-59. 27p.
9
Hoque, Zahirul.March 2014."20 years of studies on the balanced scorecard:Trends,accomplishments,gaps and
opportunities for future research." British Accounting Review. Vol. 46 Issue1,p33-59. 27p.
4. 3
Tangible Outcomes was published, and the creation of the visual map strategy was introduced in
this publication. With this diagram came a visual cause-and-effect explanation of what is
working, and what is not working in a business for everyone in an organization to understand,
and how to get the entire organization involved in a company strategy.10
Lastly, by 2006 one more book was published about the balanced scorecard called
Alignment: Using the Balanced Scorecard to Create Corporate Synergies.11 This book
completed their series of publications on the analysis and understanding of the balanced
scorecard. In this book the topics of alignment as a source of economic value, corporate strategy
and structure, aligning financial and customer strategies, aligning internal process and learning
and growth strategies: integrated strategic themes, cascading the process, aligning boards and
investors, aligning external partners, managing the alignment process and, total strategic
alignment were analyzed and put forth for reader interpretation and use.12
The balanced scorecard is a tool that many organizations rely upon to develop a strategy
creating objectives and goals to be understood by every member at all levels of the organization.
As an organization that was a pioneer in its industry, Vibram, a company that invented the rubber
sole for shoes, eventually became known as the company to create the “Five Finger” shoes,
gaining mass appeal and recognition for revolutionizing and changing the perception on how
shoes should be worn. Taking into account Vibram’s accomplishments, the balanced scorecard
10
Hoque, Zahirul.March 2014."20 years of studies on the balanced scorecard:Trends,a
ccomplishments,gaps and opportunities for future research." British Accounting Review. Vol. 46 Issue1,p33-59.
27p.
11 Hoque, Zahirul.March 2014."20 years of studies on the balanced scorecard:Trends,accomplishments ,gaps and
opportunities for future research." British Accounting Review. Vol. 46 Issue1,p33-59. 27p.
12 Hoque, Zahirul.March 2014."20 years of studies on the balanced scorecard:Trends,accomplishments,gaps and
opportunities for future research." British Accounting Review. Vol. 46 Issue1,p33-59. 27p.
5. 4
will be used as a tool to better understand the strategy behind Vibram’s creation of the “Five
Finger” shoes.
Advantages of the Balanced Scorecard
The balanced scorecard is a budgeting and performance tool for businesses to evaluate its
operational and financial performance measures and initiatives. It is just one of many ways
businesses monitor performance and manage budgets. The balanced scorecard along with a
strategic map is designed for managers to better communicate an organizations business strategy
and to make sure that every employee is on the same page as the company. It is meant to
balance long and short term objectives, financial and non-financial measures, and internal and
external factors that contribute to enhanced performance.13 This is done through measuring the
financial status and change of the organization, through measuring customer outcomes such as
market share, customer retention, customer acquisition, customer satisfaction, and customer
profitability, and through identifying important internal processes in the organization, and the
organization’s performance.14 Organizations utilize the balanced scorecard as a strategy to
improve upon the following:
Learning and growth -How to align intangible assets (people, systems, and culture) to
improve critical processes?
Internal processes -What processes are needed to excel at satisfying clients and
shareholders?
Customers- To reach the financial objectives, how to create value for customers?
13 Antonsen, Yngve. 2014. "The downside of the Balanced Scorecard:A casestudy from Norway." ScienceDirect,
August: 40-50
14 Antonsen, Yngve. 2014. "The downside of the Balanced Scorecard:A casestudy from Norway." ScienceDirect,
August: 40-50
6. 5
Financial- What are the shareholders’ expectations for financial performance?15
In order to better understand these measures several questions must be considered. “First, how
do customers see your company? Find out by measuring lead times, quality, performance and
service, and costs. Second, what must your company excel at? Determine the processes and
competencies that are most critical, and specify measures, such as cycle time, quality, employee
skills, and productivity, to track them. Third, can your company continue to improve and create
value? Monitor your ability to launch new products, create more value for customers, and
improve operating efficiencies. Fourth, how has your company done by its shareholders?
Measure cash flow, quarterly sales growth, operating income by division, and increased market
share by segment and return on equity.”16 As an organization, being able to answer these
questions will provide managers the tools to see if there was improvement in one area at the
expense of another.17 Doing so provides an additional option for companies to review their
performance and outcomes outside of the financial statements and operational budgets.
Disadvantages of the Balanced Scorecard
The primary focus of the balanced scorecard is to provide managers or executives with a
framework to translate a company’s strategic objectives into a coherent set of performance
measures.18 What the scorecard fails to address is the impact on a company’s employees with
15
KenOgata, Gary Spaakman.2013. "A BalancedScorecardfor Maple Leaf Consulting." Accounting
Perspectives 328.
16Robert S. Kaplan,David P.Norton. 2005."The Balanced Scorecard:Measures That Drive Performance." Harvard
Business Review. July. Accessed June 26, 2014. http://hbr.org/2005/07/the-balanced-scorecard-
measures-that-drive-performance/ar/1.
17 Robert S. Kaplan,David P.Norton. 2005."The Balanced Scorecard:Measures That Drive Performance." Harvard
Business Review. July. Accessed June 26, 2014. http://hbr.org/2005/07/the-balanced-scorecard-
measures-that-drive-performance/ar/1.
18Robert S. Kaplan,David P.Norton. 1993."Putting the Balanced Scorecard to Work." Harvard Business Review,
September: n/a.
7. 6
the implementation of this measurement tool and performance evaluator. This strategy is a top-
down process created for upper level managers, but fails to consider the influence it has on
employee’s performance.19 The article The downside of the Balanced Scorecard:
A case study from Norway in the Science Direct journal suggests that an employer that fosters
and environment of new ways of thinking and empowerment tend to be more stimulating and
interesting for employees. This is what is defined in the article as critically reflective behavior.
“Critically reflective behavior as a set of connected activities carried out individually or in
interaction with others, aimed at optimizing individual or collective practices, or critically
analyzing or trying to change organizational or individual values.” 20 “Critically reflective work
behavior involves examining the connection between actions and their consequences. Interaction
and reflection between managers and employees are especially vital because such
communication may increase the quality of performance at work.”21 This is the downside to the
balanced scorecard. As a performance based measurement tool, the balanced scorecard limits a
critically reflective work environment by influencing an employee’s behavior.
The research and information from this case study was conducted by interviews,
observations, and focus groups. Used in at least 60% of major organizations in the United States
and Europe, the research about the balanced scorecard discusses how the management system
may decrease employee’s levels of individual and interactive reflection and their commitment to
19
Antonsen,Yngve.2014. "The downside of the BalancedScorecard:A case studyfromNorway."
ScienceDirect, August:40-50.
20
Antonsen,Yngve.2014. "The downside of the BalancedScorecard:A case studyfromNorway."
ScienceDirect, August:40-50.
21
Antonsen,Yngve.2014. "The downside of the BalancedScorecard:A case studyfromNorway."
ScienceDirect, August:40-50.
8. 7
their organization if used as a tool of formal control.22 This assumption is the result of the use of
the balanced scorecard as a tool to encourage employees to cooperate by means of pay and bonus
incentives.23 These incentives are performance based, and research on performance management
systems has demonstrated that complete focus on financial success prevents organizational
growth. If organizations implement performance based incentive systems, employees will not, in
practice, be motivated to provide critical reflections to senior management or to change their
own practices until new instructions with new indicators and target figures are provided. 24
Since the balanced scorecard measures cause and effect simultaneously as a strategy for
development and growth, it provides businesses to view a snapshot representation of its current
market status and provides the potential to map out its future goals and status. “Because a
strategy is the hypothetical representation of cause and effect regarding the capability of an
organization to correspond to market changes to achieve a goal, such a strategic causal
relationship can form a set of causes and effects. If cause-and-effect relationships are not
adequately reflected on a balanced scorecard, the scorecard will not translate to a company’s
vision and strategy.”25
22 Antonsen, Yngve. 2014. "The downside of the Balanced Scorecard:A casestudy from Norway." ScienceDirect,
August: 40-50.
23 Antonsen, Yngve. 2014. "The downside of the Balanced Scorecard:A casestudy from Norway." ScienceDirect,
August: 40-50.
24 Antonsen, Yngve. 2014. "The downside of the Balanced Scorecard:A casestudy from Norway." ScienceDirect,
August: 40-50.
25 SangjaeLee, Sung Bum Park,Gyoo Gun Lim. 2013."Using balanced scorecardsfor the evaluation of ‘‘Software-
as-a-service’’."Science Direct: Information & Management, 553-561.
9. 8
Vibram
Vibram, a company that has been around for over 75 years has established itself as the
world leader in high performance rubber soles, targeted to the outdoor, work, recreation, fashion,
repair and orthopedic markets.26 Known for quality, performance, safety, innovation and design
since revolutionizing the sport of mountain climbing in the ‘30s with the creation of the first
rubber sole, Vibram has positioned itself as the market standard.27
Vibram was created when Vitale Bramani, an Academic of the Italian Alpine Club,
returned from a tragic alpine climb.28 He had the idea to create rubber hiking boot soles. These
rubber soles would be produced using the same technique for the production of tires resulting in
the world’s first Carramato designed rubber sole.29 This design revolutionized the footwear
apparel industry forever.
Not only has Vibram changed the footwear industry, but it has also expanded it brand
rapidly within the last decade. In 2005 Vibram went from making rubber soles on other brand
named shoes like Prada, Tods, Ferragamo, Magli, Rockport, Sergio Rossi, Allen&Edmonds,
Fornari, Hugo Boss, Armani, Dolce & Gabbana, Harrys of London, and the United States
Military, to introducing its own successful shoe line into the market, Five Fingers. Prior to the
introduction of the “FiveFingers”, in 2003 Vibram launched a rubber sole flip flop for women,
26 vibram.com. 2012. Vibram: History. Accessed 06 07, 2014.
http://www.vibram.com/index.php/us/VIBRAM/About-Us/The-History.
27
vibram.com. 2012. Vibram: History. Accessed 06 07, 2014.
http://www.vibram.com/index.php/us/VIBRAM/About-Us/The-History.
28 vibram.com. 2012. Vibram: History. Accessed 06 07, 2014.
http://www.vibram.com/index.php/us/VIBRAM/About-Us/The-History.
29vibram.com. 2012. Vibram: History. Accessed 06 07, 2014.
http://www.vibram.com/index.php/us/VIBRAM/About-Us/The-History.
10. 9
which did not gain as much attention as the “FiveFingers” shoes. Vibram “FiveFingers” shoes
are minimalist shoes that were originally marketed as a natural alternative for different outdoors
activities such as sailing, kayaking, canoeing, and as a camp or after-hike shoe.30 The purpose of
the design was to have a shoe that mimics the movements of the foot that was lightweight,
durable, and innovative.31 This concept of shoe making is what distinguished Vibram Five
Finger shoes from other in market minimalist shoes.
“The biggest difference is the five toes which make the foot move like in nature and you
have much more body-smartness. You can move and feel better, and have more power. With the
five-fingers every toe can spread out and work independently from the others, grasp the ground,
feel the ground.”32
After the expansive growth of Vibram’s “FiveFinger” shoes, the company decided to
open the first Vibram flagship store in Milan, Italy and it’s second in Boston, Massachusetts in
2012 located on Newbury Street. Prior to the opening of these stores, Vibram was an online only
business to consumer, or business to business company.
Unfortunately, for Vibram the stated health benefits of the “Five Finger” shoes did not
come without consequence. In 2012 Vibram USA was sued in a class action consumer fraud
lawsuit filed under the U.S. District Court in Massachusetts, for its claims that the “Five finger”
shoes improve the health of runners. The lawsuit was a result of complaints by runners who had
30 Martin,Michael,interview by The LivingBarefoot Show. 2009. The Living Barefoot Show episode #3: Interview to
Michael Martin, National Sales Manager for Vibram FiveFingers" (July 30).
31
Martin, Michael,interviewbyThe LivingBarefootShow.2009. The Living BarefootShow episode#3:
Interviewto MichaelMartin,NationalSales ManagerforVibramFiveFingers" (July30).
32
Fliri,Robert,interviewbyJader ToljaNelleke Don.2006. The Story of the Five Fingers,A ‘revealing’
interview withRobert Fliri in Milan,2006
11. 10
experienced increase injury instead of gained health benefits from using the shoes. The shoes
were advertised as a way for consumers to improve posture, prevent injury, and promote spine
alignment. In this case the plaintiff sought damages for violations of the Consumer Legal
Remedies Act, unfair competition, and breach of express warranty. 33 By May of 2014 Vibram
USA reached a settlement agreement and was ordered to pay a total of $3.75 million to people
who bought the shoes and said it would stop making health claims in its advertisements.34
The problem was that Vibram was able to charge nearly $100 a pair for the shoes on the basis of
unsubstantiated claims that they strengthen muscles and prevent injury.35 Vibram shoes that were
purchased as far back as March of 2009 could be eligible for a refund of as much as $94 for
every pair they purchased, according to the court filing. More than two dozen models of
Vibram shoes would qualify. Even though Vibram USA decided to settle the lawsuit to avoid
“costs of prolonged litigation”, Vibram USA Chief Executive Mike Giofriddo continues to deny
the allegations in the suit.36
Vibram and the Balanced Scorecard
Vibram’s mission statement is “Looking to the future while respecting the past”.37 On its
web site, Vibram elaborates on its mission statement by stating its purpose is: “To develop the
brand through continuous innovation, originality, and quality of the products, while remaining
33 (Blooomberg Businessweek: Textiles, Apparel and Luxury Goods 2012)
34 Germano, Sara.2014. "The Wall Street Journal." Corporate News: Vibram to Drop Health Claims, May 8: B.6.
35 Germano, Sara.2014. "The Wall Street Journal." Corporate News: Vibram to Drop Health Claims, May 8: B.6.
36 Germano, Sara.2014. "The Wall Street Journal." Corporate News: Vibram to Drop Health Claims, May 8: B.6.
37 vibram.com. 2008. Vibram, About Us, Vission and Mission. Accessed June 19, 2014.
http://www.vibram.com/index.php/us/VIBRAM/About-Us/Vision-Mission.
12. 11
faithful to the tradition of the brand.”38 Its mission statement is the perfect summary of Vibram’s
business goals and objectives. Vibram’s strategy is to develop the brand by innovating and
creating, but making sure that in the process of development and marketing, it does not lose sight
of the principles the company was founded on. Once a company or organization clearly outlines
is business strategy and establishes objectives relating to performance, it is able to define
measurements and initiatives in:
Finance
Customer Relations
Internal Controls
Learning and growth
For Vibram creating a balanced scorecard based off of this proposed strategy will enable the
vision statement to be met and attained. Vibram’s vision is to, “To maintain and strengthen our
leadership in the active lifestyle market with reliable, high quality, high performance products.”39
Finance
In order to measure Vibram’s financial performance Vibram must ask what its
shareholders expectations for financial performance?40 In 2010 sales of the “Five Finger” shoes
doubled to $100 million, however as a result of the lawsuit settlement in May of 2014,
information has surfaced that the sales of the minimalist “Five Finger” shoes have fallen
tremendously. “The sales peak and the shoes were popular around the turn of the decade amid
38
vibram.com. 2008. Vibram, About Us, Vission and Mission. Accessed June 19, 2014.
http://www.vibram.com/index.php/us/VIBRAM/About-Us/Vision-Mission.
39 vibram.com. 2008. Vibram, About Us, Vission and Mission. Accessed June 19, 2014.
http://www.vibram.com/index.php/us/VIBRAM/About-Us/Vision-Mission.
40 Ken Ogata,Gary Spaakman.2013. "A Balanced Scorecard for MapleLeaf Consulting." Accounting Perspectives
328.
13. 12
claims that running barefoot was better for the body.”41 “Minimalist shoes were the only
segment in the $7 billion running-shoe industry to post a decline in 2013, with sales falling by
one-third, according to data tracker SportsOneSource.” 42
Internal Processes
The next part of the balanced scorecard that requires consideration is measuring the
strength of Vibram’s intangible assets to improve critical processes. To better understand
Vibram’s internal processes, consideration of the supply chain method in getting one of their
“Five Finger” shoes to the end user or customer is important. Also, ensuring that there is brand
consistency will help with brand perception of Vibram amongst its employees. Having a strong
image and foundation in which the organization stands upon will help with defining the cultural
environment at Vibram.
The factors that help Vibram excel at satisfying clients and shareholders are its
continuous efforts on research and development. “Each new Vibram product is designed using
only the latest designs and the best compounds for its specific use. New soles are always
produced with three objectives:
to guarantee the best performance,
the maximum level of comfort, and
the maximum level of quality over time.
These objectives are realized by the stringent tests that are executed in the laboratory and in the
field by the Vibram Tester Team.”43
41 Germano, Sara.2014. "The Wall Street Journal." Corporate News: Vibram to Drop Health Claims, May 8: B.6.
42
Germano, Sara.2014. "The Wall Street Journal." Corporate News: Vibram to Drop Health Claims, May 8: B.6.
43
—. 2008.Vibram: History. Accessed 06 07, 2014. http://www.vibram.com/index.php/us/VIBRAM/About-Us/The-
History.
14. 13
Customers
Customer relationships are crucial for the point of being able to reach the financial
objectives set in the balanced scorecard. It is important to create value for customers. Doing so,
assists with measuring market share, customer retention, customer acquisition, customer
satisfaction and customer profitability. 44
When Vibram’s “Five Finger” shoes were in high demand, the company encountered
problems with counterfeiting and replicas. The case study, “When Vibram couldn’t meet
demand for its hot new shoes, counterfeiters stepped in. How to fight back?” opens with a story
of a customer demanding a refund of the “Five Finger” shoes because the shoes were marred by
split seems and separating soles, but what the customer did not know is they were fakes.45 “The
counterfeits copied Vibram’s colors, styles, and logos along with Vibram boxes.”46 After some
investigating it was revealed that more than 100 websites were actively selling fake Vibram
“Five Finger” shoes47. The black market for these shoes was a result of Vibram supply not being
able to keep up with the customer demand. Customers saw value in the product and Vibram
faced the risk of losing customer satisfaction due to the increased rise of counterfeit products
causing damage to its reputation.
Vibram was fortunate to have such loyal customers, because after attempting to stop the
counterfeiting by alerting the United State Customs and Border Protection, notifying Facebook
44 Ken Ogata,Gary Spaakman.2013. "A Balanced Scorecard for MapleLeaf Consulting." Accounting Perspectives
328.
45 Alsever, Jennifer. Inc.. Mar2012."When Vibramcouldn'tmeet demand for its hot new shoes, counterfeiters
stepped in." Tactics. Trends. Best Practices. Strategy Vol. 34 Issue2, p87-89. 3p.
46 Alsever, Jennifer. Inc.. Mar2012."When Vibramcouldn'tmeet demand for its hot new shoes, counterfeiters
stepped in." Tactics. Trends. Best Practices. Strategy Vol. 34 Issue2, p87-89. 3p.
47 Alsever, Jennifer. Inc.. Mar2012."When Vibramcouldn'tmeet demand for its hot new shoes, counterfeiters
stepped in." Tactics. Trends. Best Practices. Strategy Vol. 34 Issue2, p87-89. 3p.
15. 14
and Google to stop showing advertisements of fake “Five Finger” shoes, and after expanding
from one to six factories and hiring 50 people to manage production and quality control in China,
websites were still popping up selling fake Vibram “Five Finger” shoes.
Vibram reached out to customers who had been scammed offering 50% discounts on real
“Five Fingers” shoes while launching an aggressive online campaign providing lists of
authorized “Five Finger” dealers including warning tips and information on how to spot the
fakes. 48 This was part of Vibram’s strategy to regain any lost customer loyalty, even though
providing the 50% discounts was not cost beneficial for the organization.49 The damage
management strategy was successful because by 2010 sales of the “Five Finger” shoes doubled
to $100 million, and Advertising Age named Vibram one of America’s hottest brands. 50
Vibram’s balanced scorecard customer relation strategy increased Vibram’s customer
loyalty, increase their market share and sales, and made Vibram’s customer its allies in the fight
against counterfeiter “Five Finger shoes”.
Learning and Growth
Learning and growth is another measurement tool in the balanced scorecard used by
many organizations. As the world’s largest maker of branded soles, Vibram designs,
manufactures, and tests soles for major shoe brands including Timberland, Prada, and the U.S.
military.
48 Alsever, Jennifer. Inc.. Mar2012."When Vibramcouldn'tmeet demand for its hot new shoes, counterfeiters
stepped in." Tactics. Trends. Best Practices. Strategy Vol. 34 Issue2, p87-89. 3p.
49Alsever, Jennifer. Inc.. Mar2012."When Vibramcouldn'tmeet demand for its hot new shoes, counterfeiters
stepped in." Tactics. Trends. Best Practices. Strategy Vol. 34 Issue2, p87-89. 3p.
50 Alsever, Jennifer. Inc.. Mar2012."When Vibramcouldn'tmeet demand for its hot new shoes, counterfeiters
stepped in." Tactics. Trends. Best Practices. Strategy Vol. 34 Issue2, p87-89. 3p.
16. 15
Vibram has expanded as a business with Italian roots, to a business that now operates in
the United States and China. “The Vibram compound in Huadu, in southern China's Guangdong
province, sits on 42,000 square meters of land and includes offices, hospitality facilities,
dormitories and a technological center. With an investment of about $20 million in the 2-year-
old Huadu campus, the purpose of the facility is to create prototype Vibram “Five Fingers”
shoes. The shoes themselves are manufactured elsewhere in China.”51
“To test products in production one test involves romping around in a pit of mud before
climbing one of the many surfaces on ramps and hydraulic lifts, in order to determine how well a
sole cleans itself.”52 Even though Vibram has seen success and failure from the creation of its
“Five Finger” shoes its primary source of income is manufacturing soles for other shoe
retailers.53
The creation of the Vibram “Five Fingers” shoes testing facility in Huadu, China is a
strategy implemented by Vibram to ensure quality. This strategy fits within the learning and
growth measurement tool in the balanced scorecard. Creating this testing facility in China is just
one more way that Vibram chose to expand upon its research and development to fulfill its
mission of developing the brand through continuous innovation, originality, and quality of the
products, while remaining faithful to the tradition of the brand.54
51 Veach, Emily.2011. "VibramGains Foothold in China; Italian solemaker builds $20 million center for testing,
design; Will barefoot-runningtakeoff?" The Wall Street Journal, February 28: n/a.
52 Veach, Emily.2011. "VibramGains Foothold in China; Italian solemaker builds $20 million center for testing,
design; Will barefoot-runningtakeoff?" The Wall Street Journal, February 28: n/a.
53 Veach, Emily.2011. "VibramGains Foothold in China; Italian solemaker builds $20 million center for testing,
design; Will barefoot-runningtakeoff?" The Wall Street Journal, February 28: n/a.
54vibram.com. 2008. Vibram, About Us, Vission and Mission. Accessed June 19, 2014.
http://www.vibram.com/index.php/us/VIBRAM/About-Us/Vision-Mission.
17. 16
Conclusion
The balanced scorecard was created by Robert Kaplan and David Norton in 1992 for the
purpose of aligning business activities with the vision and strategy of an organization, to improve
communication both internally and externally, and monitor an organizations performance against
its strategic goals. Organizations utilize the balanced scorecard as a strategy to improve upon
learning and growth, internal processes, customer relations, and financial objectives.55 The
advantage of and organization utilizing the balanced scorecard is the provided ability for
companies to review their performance and outcomes outside of the financial statements and
operational budgets. Companies that use the balanced scorecard should be mindful of its
potential pitfalls. By using an organizations strategic plan from the balanced scorecard and
integrating them directly into work related tasks, the balanced scorecard creates rules on how an
organization operates. Adding a more rigid approach in the control of work routines, limits the
employees options for participating in job related decisions. This potentially weakens the
relationship and commitment between and employee and an organization to which it is
employed.56
As a 75 year old company, Vibram has established itself as a global leader in high
performance rubber soles. It revolutionized the footwear apparel industry by creating rubber
soles for shoes. Vibram makes soles targeted to the outdoor, work, recreation, fashion, repair
and orthopedic markets.57 Vibram’s contract partners are well known shoe companies like
55
Ken Ogata, Gary Spaakman. 2013."A Balanced Scorecard for Maple Leaf Consulting." Accounting Perspectives
328.
56 Antonsen, Yngve. 2014. "The downside of the Balanced Scorecard:A casestudy from Norway." ScienceDirect,
August: 40-50.
57 vibram.com. 2012. Vibram: History. Accessed 06 07, 2014.
http://www.vibram.com/index.php/us/VIBRAM/About-Us/The-History.
18. 17
Prada, Tods, Armani, Dolce & Gabbana, and even the United States Military. Known for
quality, performance, safety, innovation and design since revolutionizing the sport of mountain
climbing in the ‘30s with the creation of the first rubber sole, Vibram has positioned itself as the
market standard.58
Vibram’s mission statement and vision statement are what is used to create their balanced
scorecard. Vibram’s mission, “Looking to the future while respecting the past” states it purpose
is: “To develop the brand through continuous innovation, originality, and quality of the products,
while remaining faithful to the tradition of the brand.”59 Vibram’s vision statement is “To
maintain and strengthen our leadership in the active lifestyle market with reliable, high quality,
high performance products.”60 Its mission and vision statement are the perfect summary of
Vibram’s business goals and objectives for the balanced scorecard.
Under the four measurements of the balanced scorecard Finance, Customer Relations,
Internal Controls, and Learning and Growth, Vibram has positioned itself in the market to
continuously meet its performance objectives, and to improve upon the brand despite any
obstacles.
58
vibram.com. 2012. Vibram: History. Accessed 06 07, 2014.
http://www.vibram.com/index.php/us/VIBRAM/About-Us/The-History.
59
vibram.com. 2008. Vibram, About Us, Vission and Mission. Accessed June 19, 2014.
http://www.vibram.com/index.php/us/VIBRAM/About-Us/Vision-Mission.
60 vibram.com. 2008. Vibram, About Us, Vission and Mission. Accessed June 19, 2014.
http://www.vibram.com/index.php/us/VIBRAM/About-Us/Vision-Mission.
19. 18
Vibram’s financial performance for the sales of the “Five Finger” shoes doubled to $100
million in 2010, but by 2014 as a result of the lawsuit, sales of the minimalist “Five Finger”
shoes fell tremendously by one-third, according to data tracker SportsOneSource.” 61
Vibram’s internal processes takes into consideration the supply chain method in getting
one of their “Five Finger” shoes to the end user or customer. Vibram excels at satisfying clients
and shareholders with continuous efforts on research and development and ensuring that each
new Vibram product is designed using only the latest designs and the best compounds for its
specific use. Every time a sole is produced there are always three objectives in mind; to
guarantee the best performance, the maximum level of comfort, and the maximum level of
quality over time. These objectives are realized by the stringent tests that are executed in the
laboratory and in the field by the Vibram Tester Team.”62
Having a good quality product is beneficial for strengthening customer relationships.
Customer relations and creating product value are crucial for an organization to reach the
financial objectives set in the balanced scorecard. When Vibram’s “Five Finger” shoes were in
high demand, the company encountered problems with counterfeiting and replicas. After some
investigating, it was revealed that more than 100 websites were actively selling fake Vibram
“Five Finger” shoes63. For customer satisfaction and damage management, Vibram reached out
to customers who had been scammed offering 50% discounts on real “Five Fingers” shoes while
launching an aggressive online campaign providing lists of authorized “Five Finger” dealers
including warning tips and information on how to spot the fakes.
61
Germano, Sara.2014. "The Wall Street Journal." Corporate News: Vibram to Drop Health Claims, May 8: B.6.
62
—. 2008.Vibram: History. Accessed 06 07, 2014. http://www.vibram.com/index.php/us/VIBRAM/About-Us/The-
History.
63 Alsever, Jennifer. Inc.. Mar2012."When Vibramcouldn'tmeet demand for its hot new shoes, counterfeiters
stepped in." Tactics. Trends. Best Practices. Strategy Vol. 34 Issue2, p87-89. 3p.
20. 19
Learning and growth is another measurement tool in the balanced scorecard used by
companies. Vibram has grown its business and expanded its operations into the United States
and China from Italy. Vibram created a compound in Huadu, in southern China's Guangdong
province, that sits on 42,000 square meters of land and includes offices, hospitality facilities,
dormitories and a technological center. The compound was created to test products in
production, and one test involves romping around in a pit of mud before climbing one of the
many surfaces on ramps and hydraulic lifts, in order to determine how well a sole cleans itself.”64
The balanced scorecard is a tool that many organizations rely upon to develop a strategy
creating objectives and goals. Vibram, a company that invented the rubber sole for shoes,
eventually became known as the company to create the “Five Finger” shoes, gaining mass appeal
and recognition for revolutionizing and changing the perception on how shoes should be worn.
Vibram successfully fulfilled its mission of developing the brand through continuous innovation,
originality, and quality of the products, while remaining faithful to the tradition of the brand, and
the balanced scorecard was just a tool to see it through.65
64 Veach, Emily.2011. "VibramGains Foothold in China; Italian solemaker builds $20 million center for testing,
design; Will barefoot-runningtakeoff?" The Wall Street Journal, February 28: n/a.
65vibram.com. 2008. Vibram, About Us, Vission and Mission. Accessed June 19, 2014.
http://www.vibram.com/index.php/us/VIBRAM/About-Us/Vision-Mission.