Professional Documents
Culture Documents
Balance Scorecard Was Introduced in 2007
Balance Scorecard Was Introduced in 2007
1. Finance
2. Customer
3. Process
4. Employee Performance
Due to financial crisis, their sales were affected, new production was in the plant itself. The scorecard
started turning yellow and red.
Schmall was cautions on restoring finance flow – General rule that came from HQ “Drive as fast as you
can see”.
Brazil Landscape
Competition in Brazil
19% of GDP is from automotive sector and employees around 1.5 million ppl
1995, Brazilian govt made a mandate – Multinational companies either abandon Brazilian
market or producing 90-95% local content within 5 years.
By 2008, Brazil was 6th largest producer of passenger vehicle and 5 th largest consumer
market.
2008 – 3rd largest automotive company in the world – 10.3% market share
10- year vision – By 2018, they wanted to sell 6.6 mn vehicles per year – 21% ROI, top employer,
Customer satisfaction and quality
VWB’s strategy was to produce reliable and inexpensive cars – earned 61% market shared
1986 – Overcapacity and macroeconomic situation led to 20% decline and from then the market was
volatile.
He shifted the focus to “Build a high performance team that would drive VWB to become South
American’s automotive industry leader in quality, innovation, sales and profitability on a sustainable
basis”
Rebrand VWB – highly motivated employees to produce innovatively designed cars and light
vehicles.
By 2007, they wanted to instill new culture for employees – solve problems as they arose, eliminate
defects and reduce health and safety incidents though it comes with a cost and decreased short run
production output.
Isensee – CFO
BSC purpose ?
By 2008, all executives had their personal objectives linked to companies’ strategic priorities
Incentives, Fixed pay to shop floor ppl negotiated thru trade union, Awards
Dealer and supplier engagement program were set up – Awards, Supplier day.