In Project One: Applying Strategic and Operational Thinking, you prepared Key Performance Indicators (KPIs) for the marketing and sales departments of your product line.
Now, the CEO has provided you with a revised set of KPIs. You need to apply these KPIs toward the analysis of a proposed marketing and sales initiative to increase loyalty card memberships in neighborhoods with predominantly low-income populations, whether the populations are in rural, suburban, or city locations.
The CEO wants this analysis so that she can chart the sustainability and growth of the initiative while assuring it meets standards for Corporate Social Responsibility.
The CEO has provided you with several documents, available in the Supporting Materials section of this project. She wants you to use the provided Triple Bottom Line Balanced Scorecard to assess the strategic plans compliance with the KPIs and summarize your findings in a memo.
Directions
Complete the following to provide the analysis required by the CEO:
Identify the financial records that indicate commitment to TBL.
Using the TBL scorecard, evaluate the alignment of the strategic plan with KPIs. Remember, there may be multiple outcomes of this exercise. Your focus should be to apply your understanding of the scenario and evaluate the plan accordingly.
Which ideas in the plan support the KPI criteria? Cite specific ideas that meet the criteria.
Describe how the TBL data relates to the KPIs.
Identify which additional TBL financial line items are needed to measure the cost for each criterion.
For example, should there be a line entry for hiring temporary workers?
a.Outline which financial and other records marketing and sales maintains where TBL can provide data.
KPI and Triple Bottom Line Balanced Scorecard (Ma
Bottom Line
Areas of Impact
(Key Performance Indicators)
To be a global contributor to the communities w
People
Example: Community contributions based on points
achieved
Identify one additional people-focused KPI, a related SMART objective, and its measurement criter
To promote and use a platform of reuse, recycling, and su
Planet
Example: Reduction in packaging costs from
recycled materials
Identify one additional planet-focused KPI, a related SMART objective, and its measurement criter
To reach a global audience with healthy and sustai
Profit
Example: Grow market share
Identify one additional profit-focused KPI, a related SMART objective, and its measurement criteri
ttom Line Balanced Scorecard (Marketing and Sales)
SMART Objective
Measurement Criterion
To be a global contributor to the communities we operate in.
$50,000 by EOY 2021
Charitable contributions from program
PI, a related SMART objective, and its measurement criterion in this row.
o promote and use a platform of reuse, recycling, and sustainable energy use.
3% Reduction by EOY 2021
Cost of packaging
I, a related SMART objective, and its measurement criterion in this row.
To reach a global audience with healthy and sustainable products.
1% increase by EOY 2021
, a related SMART objective, and its measurement criterion in this row.
Market share performance tracking
1
Applying Strategic and Operational Thinking
LaKisha R. Harris
Southern New Hampshire University
MBA 500: Building Business Leaders 24TW3
Instructor Stephen Molchan, MST, EA
March 16, 2024
2
Applying Strategic and Operational Thinking
TO: CEO
FROM: Marketing and Sales Department Manager
Date: March 17, 2024
Subject: Analyzing strategic points of KPIs for TBL
According to Jr., J. R., S., & Bachrach (2020), a number of indicators are closely related to
an organization’s profits and revenues. An organization’s net profit, or income, is the key
performance indicator of its financial performance. As the business migrates to the TBL of
people, profit, and the planet, we must ask ourselves a lot of questions. Some of these include:
Where do we want to go in 3-5 years? Where are we now in terms of achieving these goals?
What are the hurdles to overcome, and how should we approach them? How will we track our
progress and determine whether we’ve attained our goal? These are the questions we want to
address today. Therefore, the memo indicates the strategic Key Performance Indicators (KPIs)
for measuring the impact of transitioning to a Triple Bottom Line (TBL) focus on the sales and
marketing departments of our company. The KPIs align with the company’s commitment to
Corporate Social Responsibility (CSR) as outlined in your initiative letter and will be used to
track progress towards achieving our TBL goals.
Strategic question element of TBL: people, planet, and profit.
The company’s sales and marketing department boasts of resilient and robust referral
rates despite the failure to institute an employee reward mechanism for several years. The
primary concern emerging from this is the question: Are we adequately compensating our
employees? The people part of the TBL is primarily concerned with customer retention.
3
Marketing may be costly, leading to a deepening financial outlook, which hinders the
organization from long-term strategizing and growth. The appropriate strategic question for this
factor is: What initiatives can the firm use to increase client retention and create recurring
income from existing customers?
Next, we needed to consider our organization’s carbon impact and explore ways to lessen
it. The ideal strategic question for this element is: How are our efforts to generate sustainable
packaging accessed and communicated to stakeholders?
Consumers prioritize ecologically or environmentally sound products, like decreased
packaging and natural ingredients. How are we reducing our “carbon” footprint and affecting
locally and globally? TBL aims to shift the focus away from increasing profits and cutting
expenditures. How can we boost profitability while also promoting “green” measures that benefit
consumers, vendors, shareholders, and the environment?
KPIs for Effective Development and Implementation of Strategic Questions
Key Performance Indicators (KPIs) monitor an organization’s performance over time and
help determine progress toward goals (Hernandez, 2021). In order to keep the salespeople on track
as far as the company’s long-term strategic goals are concerned, we must ensure that our sales and
marketing divisions reflect the variety of our client base. Additionally, we must pay them at
the market value rate. We will only collaborate with firms and individuals who use
environmentally conscious and reusable materials in their manufacturing as well as their
packaging. To cut energy costs and transportation waste, we plan to ship directly from suppliers
instead of using storage space. Reducing sales turnover saves money on training and churn.
Minimizing the consumption of energy not only benefits the organization’s energy cost but also
4
attracts repeat sales from clients who value social responsibility, which boosts revenues
significantly.
Measuring the KPIs
As previously stated, the company’s long-term TBL goal and vision is: “To establish itself and
become the global leader in business?to?consumer sales alongside engaging in clean production
and promoting products and initiatives that support sustainable exploitation of the natural
environment.” The organization will track progress aimed at attaining the above goal through the
following mechanisms:
We will diversify the company’s sales and marketing teams to better understand our
consumers and stakeholders.
Implementing the direct-to-customer sales strategy that effectively shortens the supply
cycle by cutting short transportation and packing costs and minimizing carbon greenhouse
gas emissions and non-reusable packing waste.
The company will be able to measure its success by donating 20% of its net profits to a
nonprofit organization that supports diversity and environmental issues aligned with our
vision.
When looking at the people element of the TBL, its important to note that paying well
the sales representatives, implementing other strategies aimed at retaining top talents at the
organization, and expanding the target market are key to ensuring the long-term
success of the company. Evaluating data related to employee turnover rate, the number of
new customers against repeat customers, and expansion rate data is crucial for measuring the
effectiveness of any strategy. The data representing these metrics will be based on the
commencement date of new projects. After the adjustments are implemented, we will be able
5
to quantify precisely how many clients we are losing due to customer churn, how often our
consumers are repeat purchasers, and even how frequently these new efforts have helped us
win new customers. This information will assist the sales and marketing divisions in
changing their aims and adapting activities.
As previously stated, the company will ensure its brand is associated with a significant
reduction of carbon footprint in all its activities, including production and supply chain.
Using the KPI outlined above, cutting carbon footprint by 15% within three years will help
the organization achieve its long-term goal of ensuring sustainability by minimizing the
number of non-sustainable items utilized to manufacture our products and implementing
direct-to-consumer sales. We would quantify this factor by reviewing our order history and
ensuring that we order fewer things that have a detrimental impact on the environment.
Paper, ink, and plastics that do not include a high percentage of recyclables are all things
where we expect to see a significant decline in consumption. Subsequently, the percentage of
recyclables utilized to achieve our target, as well as the usage of sustainable packaging,
would be excellent indicators of our goal of reducing the organization’s footprint. This metric
may be calculated by comparing the proportion of recyclable materials used in the present
operation to that in the past. Most worldwide and local markets would benefit from this sort
of endeavor because most sectors have a sizable demography of people who want
environmentally conscious items. So, this KPI will assist in meeting goals with regard to
individuals and the planet elements.
Finally, the organization will measure its total bottom line and donate an equivalent of
20% of its net profits to a charity supporting diversity and environmental issues that align
with its vision. This indicates that the organization’s profit margins will surpass estimates for
6
the fiscal year of these new projects. If clients are satisfied, they will spend more time with
our company and more frequently. This may be quantified through the deployment of
consumer loyalty and incentive programs. Both would generate the statistics for average
revenue per user and revenue rate data sets.
Functional Considerations Related to TBL
While evaluating the functional considerations pertaining to TBL, several internal and external
elements play an important role in the final outcome. Staffing issues, client reactions,
government regulations, and a variety of other factors all have an impact on an organization’s
TBL. Each area needs attention and collaboratively generated solutions to achieve TBL’s
successful strategic implementation. Some KPIs quantify a firm’s relationship with its customers
(Plowman, K. (2018); our KPIs will also assess how successful we are in converting into a whole
TBL organization. There is the likelihood that the organization will be unable to keep current
clientele or get new ones until the outfit can show a diverse current and future client base and an
inclusive organization that retains top talent and nurtures a diverse sales and marketing
workforce. We can expand our brand to a new global and diversified audience by providing
products and services that directly answer the demands of our increasing customer base, whether
through digital marketing or more ethnically diverse product offerings. As most firms in our
sector shift to goods with a higher environmental effect, we will differentiate ourselves by
marketing as the “green” alternative for health and beauty.
7
References:
Hernandez, A. (2021, November 8). CSR Initiative Letter. Retrieved March 17, 2024, from
https://learn.snhu.edu/content/enforced/878006-MBA-500-X1131-OLTRADGR.21TW1/Course%20Documents/MBA%20500%20Project%20One%20CSR
%20Initiative%20Letter.pdf?
_&d2lSessionVal=lO0UFMMvDkKoWfI6F3x2TxVB6&ou=878006
Plowman, K. (2018) Strategy and Tactics in Strategic Communication: Examining their
Intersection with Social Media Use. Retrieved March 17, 2024
https://doi.org/10.1080/1553118X.2018.1428979
Jr. J. R. S., & Bachrach D. G. (2020). Management. [VitalSource Bookshelf]. Retrieved March
17, 2024, from https://online.vitalsource.com/#/books/9781119497721/ Harper, G. D. J. .
Ms. (2019). Porters Five Forces. Salem Press Encyclopedia. Kivak, R. (2020). Key
performance indicator (KPI). Salem Press Encyclopedia.
This week we will cover a deeper understanding of balanced
scorecards and key performance indicators. Balanced
scorecards and key performance indicators (KPIs) are crucial when
assessing the financial performance of an organization because they
provide a comprehensive and balanced view of its operations and help
in aligning financial goals with overall strategic objectives. While
financial metrics like revenue, profit, and cost are essential, they only
offer a limited perspective. Balanced scorecards and KPIs, on the other
hand, incorporate various aspects, including customer satisfaction,
internal processes, and employee performance, allowing decisionmakers to evaluate how financial outcomes are influenced by these
interrelated factors. By monitoring these metrics, organizations can
identify areas of improvement, track progress towards strategic goals,
and make informed decisions to optimize financial performance and
ensure long-term success.
So what assignments are due this week?
6-1 Project Two Submission: Assessing Financial Performance due
Sunday
You only have one assignment due this week which is the above
project. The project involves completing a comprehensive analysis for
the CEO. To start, you need to:
identify the financial records that demonstrate the organization’s
commitment to Triple Bottom Line (TBL) sustainability principles
outline the specific financial and non-financial records managed by the
marketing and sales departments that can provide data relevant to TBL
Using the TBL scorecard, you’re required to assess the alignment of
the strategic plan with Key Performance Indicators (KPIs), focusing on
identifying which ideas within the plan support these KPI criteria and
explaining their alignment.
In your analysis memo, you should describe how the TBL data relates
to the KPIs, specify any additional TBL financial line items necessary to
measure the cost for each TBL criterion, and connect these
considerations back to the SWOT analyses conducted in Project One
by explaining how the functional aspects of individual departments
contribute to the organization’s overall financial performance. To
complete the project, you’ll need to submit a KPI and TBL Balanced
Scorecard with additional KPIs and SMART objectives for each TBL
element (people, planet, and profit), as well as an analysis memo,
formatted with double-spacing, 12-point Times New Roman font, and
one-inch margins, not exceeding six pages in length and including
references in APA format as per the Shapiro Library APA Style Guide.
Let me know if you have any questions, you’ve got this!!!
Steve
In Project One: Applying Strategic and Operational Thinking, you
prepared Key Performance Indicators (KPIs) for the marketing and sales
departments of your product line.
Now, the CEO has provided you with a revised set of KPIs. You need to
apply these KPIs toward the analysis of a proposed marketing and sales
initiative to increase loyalty card memberships in neighborhoods with
predominantly low-income populations, whether the populations are in
rural, suburban, or city locations.
The CEO wants this analysis so that she can chart the sustainability and
growth of the initiative while assuring it meets standards for Corporate
Social Responsibility.
The CEO has provided you with several documents, available in the
Supporting Materials section of this project. She wants you to use the
provided Triple Bottom Line Balanced Scorecard to assess the strategic
plans compliance with the KPIs and summarize your findings in a
memo.
Directions
Complete the following to provide the analysis required by the CEO:
1. Identify the financial records that indicate commitment to TBL.
a. Outline which financial and other records marketing and sales
maintains where TBL can provide data.
2. Using the TBL scorecard, evaluate the alignment of the strategic
plan with KPIs. Remember, there may be multiple outcomes of this
exercise. Your focus should be to apply your understanding of the
scenario and evaluate the plan accordingly.
a. Which ideas in the plan support the KPI criteria? Cite specific ideas
that meet the criteria.
b. Explain how they meet the criteria.
3. In your memo:
a. Describe how the TBL data relates to the KPIs.
b. Identify which additional TBL financial line items are needed to
measure the cost for each criterion.
For example, should there be a line entry for hiring temporary
workers?
c. Referring back to the SWOT analyses from Project One, explain how
functional considerations of individual departments contribute to
financial performance.
What to Submit
To complete this project, you must submit the following:
KPI and Triple Bottom Line Balanced Scorecard
Complete and submit the KPI and Triple Bottom Line Balanced
Scorecard. In the scorecard spreadsheet, identify one additional KPI, a
related SMART objective, and its measurement criterion. You need to
do this for all three elements of TBL: people, planet, and profit. You
have been provided with one example for each TBL element.
Analysis Memo
In a Word document, write a memo outlining your analysis. Ensure that
the memo is organized by TBL element with a header for each segment
of your analysis. The Word document should use double-spacing, 12point Times New Roman font, and one-inch margins. This memo
should be no more than 6 pages in length, and include references cited
in APA format. Consult the Shapiro Library APA Style Guide for more
information on citations.
In Project One: Applying Strategic and Operational Thinking, you
prepared Key Performance Indicators (KPIs) for the marketing and sales
departments of your product line.
Now, the CEO has provided you with a revised set of KPIs. You need to
apply these KPIs toward the analysis of a proposed marketing and sales
initiative to increase loyalty card memberships in neighborhoods with
predominantly low-income populations, whether the populations are in
rural, suburban, or city locations.
The CEO wants this analysis so that she can chart the sustainability and
growth of the initiative while assuring it meets standards for Corporate
Social Responsibility.
The CEO has provided you with several documents, available in the
Supporting Materials section of this project. She wants you to use the
provided Triple Bottom Line Balanced Scorecard to assess the strategic
plans compliance with the KPIs and summarize your findings in a
memo.
Directions
Complete the following to provide the analysis required by the CEO:
1. Identify the financial records that indicate commitment to TBL.
a. Outline which financial and other records marketing and sales
maintains where TBL can provide data.
2. Using the TBL scorecard, evaluate the alignment of the strategic
plan with KPIs. Remember, there may be multiple outcomes of this
exercise. Your focus should be to apply your understanding of the
scenario and evaluate the plan accordingly.
a. Which ideas in the plan support the KPI criteria? Cite specific ideas
that meet the criteria.
b. Explain how they meet the criteria.
3. In your memo:
a. Describe how the TBL data relates to the KPIs.
b. Identify which additional TBL financial line items are needed to
measure the cost for each criterion.
For example, should there be a line entry for hiring temporary
workers?
c. Referring back to the SWOT analyses from Project One, explain how
functional considerations of individual departments contribute to
financial performance.
What to Submit
To complete this project, you must submit the following:
KPI and Triple Bottom Line Balanced Scorecard
Complete and submit the KPI and Triple Bottom Line Balanced
Scorecard. In the scorecard spreadsheet, identify one additional KPI, a
related SMART objective, and its measurement criterion. You need to
do this for all three elements of TBL: people, planet, and profit. You
have been provided with one example for each TBL element.
Analysis Memo
In a Word document, write a memo outlining your analysis. Ensure that
the memo is organized by TBL element with a header for each segment
of your analysis. The Word document should use double-spacing, 12point Times New Roman font, and one-inch margins. This memo
should be no more than 6 pages in length, and include references cited
in APA format. Consult the Shapiro Library APA Style Guide for more
information on citations.
######
Consolidated Balance Sheet
$ thousand
$ thousand
$ thousand
31-Dec-18
31-Dec-17
31-Dec-16
Assets
Current assets
Cash and cash equivalents
Inventories
Accounts and other receivables
Prepaid expenses
6,121
8,164
14,178
1397
4,272
4,301
10,482
472
3,317
3,962
9,219
488
29,860
19,527
16,986
17,062
7,962
8,000
3,427
11,088
7,152
8,000
1072
10,270
6,520
8,000
1016
36,451
27,312
25,806
66,311
46,839
42,792
Accounts and other payables
7,768
7,457
6,426
Short-term debt
3,691
2,613
7,378
Deferred revenue
898
1,445
1,088
Non-current assets
Property, buildings and equipment
Intangible assets
Goodwill (See notation below)
Long-term Financial assets
Total assets
Questions to consider
– Is the building LEED Certified (planet)?
– Is the equipment new and energy efficient (planet)?
– Is the plant minimizing waste (planet)?
– Is the property focused on preserving natural resources (planet)?
– Is the equipment effectively producing more and safer products (people, profit)?
Questions to consider
– Is the company using its financial assets to support communities (people)?
– Is the company increasing its financial assets by decreasing waste (planet, profit)?
– Is the company focused on investing in funds of TBL companies (planet, profit)?
– Is the companys stock portfolio diversified (people, planet, profit)?
Liabilities
Current liabilities
Other current liabilities
620
624
525
12,977
12,139
15,417
5,499
5,784
8,158
Question to consider
– Is the company managing liabilities to limit short -term interest
payments (profit)?
Non-current liabilities
Long-term debt
Other non-current liabilities
Total liabilities
339
346
1200
5,838
6,130
9,358
18,815
18,269
24,775
Equity
Shareholders equity
Common Stock
134
120
110
Additional Paid-in-Capital
3,574
2,227
2,107
Retained earnings
43,788
26,223
15,800
Total equity
47,496
28,570
18,017
Total liabilities and equity
66,311
46,839
42,792
Question to consider
– Is the company reinvesting its retained profit into TBL initiatives
Notation: Goodwill is defined as “an intangible asset that is created when one company acquires another company for a price greater than its net asset value.”
It has nothing to do with charitable or philanthropic efforts.
