The following strategic objectives have been derived from a strategy that seeks to improve asset utilization by more careful development and use of its human assets and internal processes:
a. Increase revenue from new products.
b. Increase implementation of employee suggestions.
c. Decrease operating expenses.
d. Decrease cycle time for the development of new products.
e. Decrease rework.
f. Increase employee morale.
g. Increase customer satisfaction.
h. Increase access of key employees to customer and product information.
i. Increase customer acquisition.
j. Increase return on investment (ROI).
k. Increase employee productivity.
l. Decrease the collection period for accounts receivable.
m. Increase employee skills.
The heart of the strategy is developing the company’s human resources. Management is convinced that empowering employees will lead to an increase in economic returns. Studies have shown that there is a positive relationship between employee morale and customer satisfaction. Furthermore, the more satisfied customers pay their bills more quickly. It was hypothesized that as employees became more involved and more productive, their morale would improve. Thus, the strategy incorporated key objectives that would lead to an increase in productivity and involvement.
Required:
1. Classify the objectives by perspective, and suggest a measure for each objective.
2. Prepare a strategy map that illustrates the likely causal relationships among the strategic objectives.