Running head: REPORT ON STRATEGIC IMPLEMENTATION 1

Report on Strategic Implementation

Name

Institution
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Report on Strategic Implementation

Introduction

Delta/Signal Company is an automotive parts manufacturer that you have been guiding to

implement strategy while playing the Balanced Scorecard Simulation. After dismissing its

longtime Chief Executive Officer, the automotive company, Delta/Signal Corporation urgently

needs a coherent strategy, and initiatives with clear objectives and metrics which correspond to

the procedure. The company did not choose the other three strategies that are low initial cost,

innovation and customer integration because it sought a cost leadership strategy which

recommends competitiveness. Since the firm needed to come up with a strategy, the objectives

were chosen in the four categories that are: financial, customers, process, learn and growth

perspective. Delta/Signal Corporation chose the low lifetime cost strategy to stimulate demand

and also gain market. Unlike, strategic mapping requires a strong leadership support to be

successful. The report provides how a strategy map and a balanced scored were used to

implement the low lifetime cost strategy at Delta/Signal Company.

Strategic Mapping

Strategic maps are significant in the information age when invisible aspects such as

employee skills, consumer relationship, and the innovating capacity are competitive advantages

(Kaplan & Norton, 2015a). Strategic plans are the visual framework for the organization’s

objectives within the four major perspectives that are financial, consumer, processes, and

learning and growth. The maps show the cause-and-effect link created by the Balanced

Scorecard for desired results for the company (Kaplan & Norton, 2015b). The strategic maps

represent how the knowledge, skills, and systems that employees will need to innovate and
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establish the right capacities and efficiencies (Kaplan & Norton, 2015a). Unfortunately, strategic

mapping is an overwhelming framework which requires a strong leadership support.

The financial perspective majors on revenue growth and productivity improvement.

Delta/Signal Company was able to achieve revenue growth from new products, markets,

customers. It chose to increase the value to existing customers by strengthening the relationship

between consumers and the firm through increasing sales. On the other hand, productivity was

improved by increasing asset turnover and improving operating income margin. The consumer

approach describes the customer relationships. Through the customer perspective of the strategic

implementation, Delta/Signal Corporation attracted and retained customers by improving

customer satisfaction, setting competitive prices for customers and making their status as leading

low-cost.

Delta/Signal also implemented its strategy through the Internal Process Perspective.

Through this approach, the firm had to align the corporation’s spending with the balanced

scorecard objectives. Therefore the company had to develop products with low costs, improve

assembly line efficiency and leverage supplier technology. The corporation also reduced

administrative costs, investment in working capital and overhead costs. The learning and growth

perspective involved improving low-cost sourcing employee skills and improving understanding

of product costs.

Balanced Scorecard

Delta/Signal Corporation’s manager used a balanced scorecard. Therefore, they did not

have to depend on temporary financial measures as primary indicators of the firm’s performance

(Kaplan & Norton, 2015a). Balanced Scorecard assists the managers to reach future strategic
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aims through the short-term activities. The balanced scorecard supports the management build a

consensus around the firm’s plan and vision. It helps people to rely on the words in plan and

vision statements; those arguments must be described as a combined set of aims and metrics that

describe the long-term drivers of success (Kaplan & Norton, 2015a). Through the balanced

scorecards, the Delta/Signal Company accessed ways of communicating the entire plan to enable

all members of the firm to comprehend it, through ensuring that all individual and departmental

objectives are proportional to it (Kaplan & Norton, 2015b).

Referring from the low lifetime cost strategy, the cause-and-effect relationships played

out as expected. Although, some of the initiatives produce a change in the metrics immediately,

others may need may need time to show positive outcomes. Specifically, the initiatives which are

working well to achieve the objective include the customer initiatives, process initiatives and the

learning and growth initiatives. Customer initiatives are successful in departments such as the

corporate training, sales and marketing, strategy and development, the customer service

department and research and development. Process and learning growth initiatives are working

specifically for departments such finance and budgeting, manufacturing, IT and systems, human

resources, research and development, and the manufacturing department. The balanced scorecard

shows that the asset turnover, operating income margin and sales need to improve.

Strategic maps mainly assist in improving the understanding of the procedure and

upgrading the balanced scorecard. On the other hand, balanced scorecards communicate what the

firm is trying to accomplish and also monitors the progress towards reaching strategic targets.

Delta/Signal Corporation required a low lifetime cost strategy to improve cost leadership plan.

The strategy implementation process involved strategy mapping and balanced scorecards. The

firm approached the implementation through the four main perspectives which are the financial,
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customers, process, learn and growth perspective. The balanced scorecard aided in the company

in integrating their economic strategy with their business. It also gave the management the

opportunity for strategic learning and capacity to reach their objectives.

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References

Kaplan, R. S., & Norton, D. P. (2015a). Havard Business Review OnPoint Article. Having

Trouble with Your Strategy? Then Map It

Kaplan, R. S., & Norton, D. P. (2015b). Havard Business Review . Using the Balanced

Scorecards as a Strategic Management System.