Volkswagen de Brasil

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Q.

What are your key learning points from the case in the context of
business performance management using various tools of MPC?
A. Strategy Map and Balanced scorecard helped in implementation
of the strategy in several ways. In general they help translating the
strategy into objectives, monitor progress and display the
correlations between cause and effect.
The Strategy map for example helped in filtering out four
dimensions
1.
2.
3.
4.

Financial Challenges
Customer Challenges
Internal Process Challenges and
Potential and Growth Challenges.

It also helped in identifying how intangible assets like employees are


turned into assets that provide us financial tangible results.
All the dimensions mentioned above have their own metrics, which
can be used to identify ways that can actually help in conquering
obstacles. From the case we see that the vision to become #1
automotive manufacturer in America, which was a high level
objective was converted into unambiguous tasks, which could easily
be supervised.
Talking from Balance scorecards point of view, using it made
possible to define, measure and monitor outcomes in a manner that
told the organization whether the results were in line with the scope
and the objectives set by the organization.
All the challenges that the organization faced had their own
objectives and scope. The organizational challenges were drilled
down to all the levels up to the shop floor employees, which enabled
them to display the actual status of their work. Thus use of BSC
enabled the organization to increase transparency in the work at all
levels, which in turn enabled the organization to identify problems in
a quick manner and deliver the solutions to the issues as soon as
possible.
Use of BSC and Strategy map actually helped Volk wagon De Brazils
executive team to improve the relationship with all the stakeholders
within a good timeline even when the resources were scarce and
there high time pressure from the headquarters in Germany.
Another thing that should be kept in mind with respect to
implementation of both the strategies is that both have their
strengths and weaknesses. For Example implementing BSC is highly
time consuming as it has to be understood by all the employees for
it be successful. Training all the employees about how to use BSC
not only is time consuming but also requires a high financial
support, which may not be possible for all the organizations.

Thus it is necessary to look at the positives as well as negatives and


also look at feasibility for implementation otherwise it can lead to
disastrous results.

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