The Balanced Scorecard (BSC) is a strategic performance management tool - a semi-standard structured report, supported by proven design methods and automation tools, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions. Kaplan and Norton cam up with this idea.
Evaluation not just based on Financial performance you might not be able to sustain performance .
Apart from Fin perspective there are other perspectives which can be seen as follows:
Profit = RASM - CASM ... Maximize the difference
Evaluation not just based on Financial performance you might not be able to sustain performance .
Apart from Fin perspective there are other perspectives which can be seen as follows:
- Customer
- Learning and Growth
- Internal Process -> Investing in our learning and growth. Positioning and Training etc
Can be applied at any level of the company !
Example of Zappos. Managing and maintaining preformance. How do we do it ? How do we apply ?
Strategy Maps - How are you going to achieve this ? What are the series of steps and actions to achieve the level of performance.
Airline Industry Models :
Hub and Spoke Model - American, Delta, United, Continental
Point to Point Model - Southwest
Airline Industry Pressure Points :
- Competition
- Fuel prices
- Federal regulation
- Security
Theme for the strategy Maps for Southwest : Low Cost Efficiency !
2 Matrix in Airline Industry
CASM
RASM
CASM is a commonly used measure of unit cost in the airline industry. CASM is expressed in cents to operate each seat mile offered, and is determined by dividing operating costs by ASMs. This number is frequently used to allow a cost comparison between different airlines or for the same airline across different time periods (say for one year vs the preceding year). A lower CASM means that it is easier for the airline to make a profit, as they have to charge less to break even.
No comments:
Post a Comment