The balanced scorecard is an effective tool for measurement and evaluation of a firm's actions and strategies. However, where does the BSC stand with measuring Customer Experience Management. We discuss this with a case study of Southwest Airlines. A presentation for Services Marketing postgraduate course at The University of Queensland.
7. 3. CUSTOMER
3. CUSTOMER
3. CUSTOMER
Objectives Measures Targets Initiatives
“To achieve
our vision,
our vision,
how should we
appear to
customers
customers
2. INTERNAL BUSINESS PROCESS
2. INTERNAL BUSINESS PROCESS
2. INTERNAL BUSINESS PROCESS
2. INTERNAL BUSINESS PROCESS
2. INTERNAL BUSINESS PROCESS
“To satisfy our
Objectives Measures Targets Initiatives
“To satisfy our
shareholders
and customers,
and customers,
what business
what business
processes must
we excel at?
we excel at?
BSC MODEL
Source: Kaplan & Norton, 1992
4. ORGANISATION LEARNING
4. ORGANISATION LEARNING
4. ORGANISATION LEARNING
4. ORGANISATION LEARNING
4. ORGANISATION LEARNING
“To achieve Objectives Measures Targets Initiatives
our vision,
how will we
how will we
sustain our
ability to
ability to
change and
change and
improve?
1. FINANCIAL
1. FINANCIAL
1. FINANCIAL
Objectives Measures Targets Initiatives
“To succeed
financially,
financially,
how should we
appear to our
shareholders?
shareholders?
1. FINANCIAL
1. FINANCIAL
1. FINANCIAL
Objectives Measures Targets Initiatives
“To succeed
financially,
financially,
how should we
appear to our
shareholders?
shareholders?
8. Most organisations will say
the purpose of BSC is to link
evaluation to strategy.
(Schneiderman, 2003)
9. From performance evaluation to
strategic management
EVOLUTION
1st Generation
(Kaplan & Norton,
1992)
Four box approach
2nd Generation
(Kaplan & Norton,
1996)
Four box approach Strategic linkages
3rd Generation
(Late 1990s)
Four box approach Strategic linkages
“Destination
statement”
4th Generation?
NOT SURE WHAT WILL BE “NEW”-
A LINK TO CUSTOMER EXPERIENCE MANAGEMENT?
11. Process managing a
customer’s experience
with a product or a
company
Truly customer focused management
concept (not a “marketing” concept)
Is also related to employees
WHAT IS CEM?
12. Source: Schmitt, 2003
FIVE STEPS OFCEM
FRAMEWORK
1.Analyze
experiential world of
the customer
2. Build
experiential
platform
3. Design the
brand
experience
4. Structure
customer
interface
5. Engage in
continuous
innovation
22. Based in Texas, USA, since 1967
Full-service
No seat assignments, no meals, no
movies
Fulfill its promises
Customer Service guarantee:
Low-cost, no-frills
Brand value: people & love
Brand differentiators : Flight
attendants
29. “While more recent Balanced
Scorecard designs are substantial
improvements on original ideas,
there is room for improvement.”
- Lawrie and Cobbold (2004)
30. Strategy
map
Objectives Measures Targets Initiatives
Financial Same as their original BSC
Same as their original BSC
Same as their original BSC
Customer
Desirable
customer
experience
Desirable
customer
experience
1. Customer
satisfaction
2. Customer
retention
3.Three shares
Rank 1
Customer
engagement
Internal
Service
guarantee
General
service
Branded
service
1. Service
reaction time
2. Positive
feedback rate
Raise work
efficiency
100%
Attendant
engagement
Learning
Desirable
employee
experience
Employee
skills
Aligned with
strategy
1. Employee
satisfaction
2. Employee
retention
3. Self-
assessment
Rank 1
Training
Communicati
on
Incentive
Internal
competition
31. 1. What is a Balanced Scorecard good for?
2. What is Customer Experience Management
3. The Black Hole of BSC-CEM
4. Case study: Southwest Airlines
5. Formulation of a new model
IMPORTANT LESSONS
RECAP
LET’S DO A