Creating mission and vision statements are the initial steps of strategic management, “the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives” (Pearce & Robinson, 2009, p. 3). Establishing _what the business is_ and _where it wants to go_ leads to the development of strategic objectives that identify “what must be done to realize the vision and mission of a business” (University of Phoenix, 2009, para. 2).
Knowing what must be done is not enough; a set of specific actions and measures are needed. “A balanced scorecard is the tool that can identify what must be measured, what the specific measures are, and what specific targets are needed” (University of Phoenix, 2009, para. 2). The balanced scorecard is “a strategic approach and performance management system that enables organizations to translate a company’s vision and strategy into implementation, working from 4 perspectives: (a) financial perspective, (b) customer perspective, (c) business process perspective, and (d) learning and growth perspective” (Value Based Management, 2009, para. 1).
Strategic objectives and a balanced scorecard (appendix A) were developed by taking into consideration the company mission statement, vision statement, values, and the outcomes of the SWOTT (strengths, weaknesses, opportunities, threats, and trends) analysis for My First Teeth Keepsakes.
The strategic objectives for the financial perspective are:
Increase market share by five percent yearly for the next five years.
Increase profitability three percent yearly after break-even point.
Increase revenue two percent yearly for the next five years after year one and decrease costs one percent yearly for years two through five.
The strategic objectives for the customer perspective are:
Increase amount of customers two percent yearly for the next five years.
Establish partnership with one dental provider monthly for the next five years.
Offer one new product line every two years.
INTERNAL PROCESSES PERSPECTIVE
The strategic objectives for the internal processes perspective are:
Improve operational efficiency by one percent yearly for the next five years.
Increase marketing budget one percent yearly for the next five years.
Provide quality innovative products and service with 98% quality control.
LEARNING AND GROWTH PERSPECTIVE
The strategic objectives for the learning and growth perspective are:
Improve use of technology in production and service three percent yearly for the next five years.
Maintain employee satisfaction at 95%.
Increase workforce knowledge and skills with trainings yearly over the next five years.
DERIVATION OF OBJECTIVES
Each of the strategic objectives are interrelated and derived from a combination of the mission, vision, values, and SWOTT analysis opportunities as illustrated in Appendix B.
The strategic objectives for the financial perspective were derived from the vision statement; specifically _to become the leading provider of baby teeth savers_. To become the leading provider the business must increase market share and be profitable. To be profitable, the company must increase revenue while decreasing costs.
The strategic objectives for the customer perspective were derived from the vision and mission statements and the need to fulfill the financial perspective. The strategic objective of increasing customers fulfills the financial perspective. The company vision of becoming the leading provider can be possible by establishing partnerships with dental providers, which is the basis for the partnership strategic objective. The mission statement states, _to provide a variety of keepsakes_ is the basis for the strategic objective of offering a new product line every two years, which also fulfills the innovation opportunity identified in the SWOTT analysis.
The strategic objectives for the internal processes perspective were derived from the need to fulfill the financial and customer perspectives and company vision. Improving operational efficiency will decrease costs and increase profitability. Increasing the marketing budget will increase the possibility of increasing customers. Providing quality innovative products is derived from the vision statement’s reference to _using quality products_ and mission statement’s reference _containers molded from their child’s dental structure that will protect, preserve, and display_ and the innovation opportunity identified in the SWOTT analysis.
The strategic objectives for the learning and growth perspective were derived from the need to fulfill the internal processes and customer perspectives. Improving the use of technology in production and increasing workforce knowledge and skills will improve efficiency, quality innovative products, and the ability to offer new product lines. Improving technology in service will aid in increasing the amount of customers. Maintaining employee satisfaction results in improved efficiency and providing quality products.
The My First Teeth Keepsakes’ values, C_ustomers are priority one, What we do, we do for you,_ and _It’s a lifelong memento for someone; take a moment in your life to make it right_ are inherent in the creation of the strategic objectives. The business was created to address an unfulfilled customer need of protecting, preserving and displaying baby teeth with memorable innovative quality products that parents will cherish.
The SWOTT analysis opportunities of innovation are incorporated in the creation and development of the keepsakes and strategy
Developing strategic objectives requires critical thinking and consideration of several factors. Using the mission statement, value statement, values, and SWOTT analysis to develop strategic objectives and a balanced scorecard will enable a company to translate the objectives into realistic measurable actions that can be implemented and monitored.
Pearce, J. A. II, & Robinson, R. B. (2009). _Strategic management: Formulation, implementation, and control (_11th ed.). New York: McGraw-Hill.
University of Phoenix. (2009). Week four weekly overview. Retrieved from University of Phoenix, Week Four. BUS/475–Integrated Business Topics Course Website.
Value Based Management. (2009). _Balanced scorecard method_. Retrieved from http://www.valuebasedmanagement.net/methods_balancedscorecard.html