British airways company balanced scorecard essay sample. Here is the balanced scorecard view of the southwest airlines strategy. How southwest airlines developed its balanced scorecard analysis southwest airlines set operating efficiency as its strategic theme. The balanced scorecard is intended to consider everything important to a companys longterm health. Airlines balanced scorecard metrics pack the pack includes 5 airlines metrics. Step 4 your actual performance for each metric is recorded in this column. Balanced scorecard strategic management airlines scribd. 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 performance of various organizations. Southwest airlines company luv balance sheet yahoo. Free download of hr scorecard template2 pdf document available in pdf format. Step 3 for each performance metric, the highest and lowest performance levels in the benchmark are recorded.
Similarly, customers of southwest airlines have different. One increasingly popular framework to combine these qualities is the balanced scorecard. Balanced scorecard in higher education applied case study. But theres a danger of losing the forest in the trees. Upward airlines reading a balanced scorecard strategy map. Strategic human resource management tools strategic human resource management tools, managers use several tools to translate the companys strategic goals. Southwest airlines swa, based in dallas, operates more than 4,100 flights daily to more than 100 destinations.
Harr emphasized in class on friday, november 14, 2014 that the balanced scorecard was created by the same folks that created activity based costing. David norton and i introduced the balanced scorecard in a 1992 harvard business. Library of congress cataloginginpublication data niven, paul r. Get the annual and quarterly balance sheet of southwest airlines company luv including details of assets, liabilities and shareholders equity. The company was incorporated in 1967 and is headquartered in dallas, texas. 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 bsc is one of the key techniques in strategy formulation and implementation. The balanced scorecard is one of the most successful, endurable management concepts in. For example, consider the linkages in the service management profit chain.
A strategy canvas is basically a line graph that plots functionsfactors against importance for a company or an organisation and then overlays competitors or industry benchmarks. One increasingly popular framework to combine these qualities is the balanced scorecard bsc, and specifically the more recent incarnation, the strategy map. Monitor airlines performance with these kpis in excel. This video provides an example of a balanced scorecard with strategy maps. In this way, information can be built to help formulate a competitive strategy. Essay by nilsla, university, bachelors, a, may 2006. Continue building on our unique position the only short haul, lowfare, highfrequency, pointtopoint carrier in america.
Related research documents it measurement survey results april 21, 2005, trends it and business alignment. A full balanced scorecard example including 6 templates. Low cost with differentiation financial objectives. 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. 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. Balanced scorecard for southwest airline financial. Since southwest airlines is a service company, customer satisfaction. Balanced scorecard and strategic analysis of southwest airlines 2241 words apr 25, 2006 9 pages executive summary southwest airlines co. 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. An it perspective october 15, 2004, best practices november 21, 2005 it strategy maps. Whether you are looking for a professional balanced scorecard software. 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.
This paper is aims to apply the balanced scorecard approach in educational institutions by replicate the. Southwest airlines was founded in 1960s, by herb kelleher and rolling king. If somebody was working just to be compensated, we probably didnt want them at southwest airlines. Measures that drive performance and a 1996 book, the balanced scorecard. Chairman of southwest airlines when he is speaking about employee compensation. The balanced scorecard is a performance management system that can be used in any. Innovation and learning, or employees, in place of learning and growth, for example. A balanced scorecard consists of an integrated set of performance measures that are derived from the companys strategy and that support the companys strategy throughout the organization a strategy is essentially a theory about how to achieve the organizations goals. Southwest service desk global database top quartile efficient and effective lower quartile middle quartiles effective but not efficient middle quartiles efficient but not effective initial southwest airlines service desk balanced scorecard step 1 six critical performance metrics have been selected for the scorecard. Southwest airlines field tech business practice case study.
Dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit. The map below is based on one of the earliest developed for southwest airlines swa in the usa. The four perspectives embodied in the balanced scorecard were linked together by a series of relatively simple questions and answers. Walmart, costco, and southwest airlines all offer consistently low prices. If we include citations to itthe recent expansion of democracy, what samuel huntington 1991 has called the third wave, started in the mid1970s, first in southern europe, then scholars of democracy and society including all. Benchmarking is one of the strategies that facilitated southwest airlines to design a successful model in the airlines industry, one that was further considered to. If you are not transferred, please click here to continue. A balanced scorecard shows a series of causeandeffect relationships that show how a companys focus on learning and.
Balanced scorecard definition, explanation, example. Keywords balanced scorecard, efqm excellence model. The nations largest carrier in terms of originating domestic passengers boarded, swa prides itself on quick turns at. I am very pleased to report another strong performance for 2018. Wall street journals the middle seat released its yearly scorecard for the 8 biggest us airlines. Real world how southwest airlines developed its balanced.
View all luv assets, cash, debt, liabilities, shareholder equity and investments. Southwest airlines aim to be the leader in the industry by being the primary choice for the consumers. Also read southwest airlines corporate culture essay sample. Southwest airlines developed a business strategy to compete. Use these free templates or examples to create the perfect professional document or project. 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. With that in mind, lets dive right in to an example of what a balanced scorecard looks like in practice. The company structure, culture, and human resources have been taken into consideration. British airways company balanced scorecard essay example. We suggest a similar balanced scorecard for air india.
Initial southwest airlines service desk balanced scorecard step 1 six critical performance metrics have been selected for the scorecard. How southwest airlines used metrics to reach a higher. A strategy canvas can be built in quickscore our balanced scorecard software tool. External and internal environment has a great impact on the competitiveness of the firm. Positioning southwest airlines through employee branding. Airlines balanced scorecard metrics pack strategy2act. Balanced scorecard for southwest airline financial objectives measures targets from bus 475 at university of phoenix. Southwest airlines has been a strong growth company over the last 35 years. This firm has been experiencing challenges in maintaining competitiveness with the market. Our 46th consecutive year of profitability is a record unmatched by any competitor in the u.
Balanced scorecard and strategic analysis of southwest. The balanced scorecard is the closest management tool to a crystal ball as you will find. Pdf performance improvement is high on the agenda of many. 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. By the end of this article, youll be a balanced scorecard expert. Southwest airlines is an airline carrier that operates within the american domestic market. As a prime example, we can measure the financial perspective area of a bsc with the following measures. For this example, were going to look at upward airlines, a hypothetical airline loosely based on southwest airlines strategy in. Benchmarking is one of the strategies that facilitated southwest airlines to design a successful model in the airlines industry, one that was further considered to be a benchmark for the entire world. Balanced scorecard in higher education applied case study on arab academy for science, technology and maritime transfer dr. The balanced scorecard focuses on factors that create longterm value traditional financial reports look backward reflect only the past.
Balanced scorecard and strategic analysis of southwest airlines essay sample. Each would have its own specific set of indicators. The scorecard tracks seven different measurements from dot complaints to onetime arrivals to come up with the rankings. How southwest airlines developed its balanced scorecard analysis. The balanced scorecard implementation at southwest airlines has gone through a series of iterations and they are currently in their 3rd generation. Sw is grateful to mahanakorn university, bangkok, thailand, and its. As of december 31, 2005, it operated 445 boeing737 aircrafts and provided service to 61 cities in 31 states. Download as pptx, pdf, txt or read online from scribd. Video watch the latest explainer videos, case study discussions, and whiteboard sessions, featuring ideas and practical advice for leaders. The top level target is to achieve its profitability, costs, and revenue goals.
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