Page 39 - DCAP307_PLANNING_AND_MANAGING_IT_INFRASTRUCTURE

Unit 2: Strategic Planning

make better operational decisions. It will also encourage and direct managers to undertake Notes
tactical activities that are consistent with the goals of the strategic plan and the expectations of
the stakeholders of the business.

Example: Financial goals appropriate for consideration on the balanced scorecard:

3% Increase in sales for the current year
13% Increase in sales for next three years

Inventory reduction to $7M in the current year
Inventory reduction to $18 million in the next three years
Maintain current profit margins 27%
Increase inventory turns from 1.9 to 2.6 incurrent year
Increase inventory turns to 4.3 times within three years
The next lists are examples of non-financial goals related to metrics not directly reported on
traditional financial statements. However, these metrics are related to process and execution
issues that can substantially impact and influence the financial metrics.

Example: Non-financial goals might include the following:

Non-financial goals
Improve customer satisfaction levels to 9.8 from 9.5 (10 point scale)
Improve on-time delivery to 99.7% from 98.5%
Reduce obsolete inventory from 3% of sales to 1% of sales

Reduce the number of stock keeping units by 10%
Reduce employee turnover by 25%
Promise to Employees
To create a positive working environment where each associate can grow professionally and
financially through continuous education, job stability, and competent management (measure
through employee surveys).
During the process of developing a strategic plan and strategic statements for the business and
for the functions we defined what is important to do and to measure. From this work we can
develop the balanced scorecard elements important for the business and appropriate for driving
behaviour and results.
If the scorecard measurements selected for the business are grounded in the long term strategic
plan and focused on the near term annual business plan then the opportunity exists for
breakthrough results. Improvements can be anticipated in both the traditional financial measures
and in the process and performance measures around the issues of product, process, employee,
customer, supplier and market development.

!

Caution The selected metrics must be a balanced mix of both financial and non-financial
measures, and must be few but important to the sustainability of the business.

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