WAL-MART’S BALANCED SCORECARD

Objectives Measure Target Initiatives

Finance Increase Gross income. Increase Increase

revenues of revenue of employee
employee. employee by efficiency
5% during next though training
2 years. and
technology.

Increase Gross profit Increase Increase

revenues of ROA Revenue by 8% revenues.
total assets. during the next Make a more
ROE year. though use of
assets.

Increase return ROI Increase return Reduce

on investment. on investment operating costs.
by 2% every Achieve
year for three economies of
years scale though
bulk purchases

Customer Increase Average Increase Provide a wider

customer size. customer size customer size variety of
by 5% every products to
year for next 5 customers.
time.

Increase Service rating. Increase The prices at

customer customer rating Wal-Mart
rating. by 10% in one should be the
years’ time. lowest in the
market.

Reduce waiting Average Reduce the Change the

time for waiting time. average layout of the
customers at waiting time by store so that
counters. 15% within one more checkout
year. counters are
opened.
 Reduce number Number of Reduce the Improve
of customer complaints. number of quality control
complaints. customer of products
complaints stocked.
received by 4% Improve
every year for customer
3 years service.

Internal Reduce gap in total Reduce Train the

processes administrative turnover two administrative employees so
expense of total periods expense of total that they
revenues. revenue by 2% become more
every year for efficient.
next 5 years.

Reduce lead Average time Reduce time Use automatic

tome from taken. taken by 5% in packing.
online orders to every year for Handle
delivery. next 3 years. technology for
speeding up.

Organisational Increase Average Increase Hire outside

capacity training hours training hours training hours trainers.
per employee. per employee. per employee Managers
by 5% each should increase
year for the their time spent
next three for training.
years.

Reduce Turnover rate. Reduce Increase

employee employee employee
turnover rate. turnover rate participation on
by 3% each decision
year for next 3 making.
years. Increase job
rotation.

Increase use of Empowerment Increase Give more

employee’s index. empowerment decision
view. index by 5% making
every year for authority to
at least 3 years. employees.