Client Situation
Our client is the National Sales Company in Bahrain, for a leading automobile. It is one of the leading automotive distributors in Bahrain with exclusive dealerships. The automotive business constitutes over 40% of the overall client activities. The senior management is concerned that in a rapidly changing external environment that provides significant opportunities, but also significant challenges, it needs to be a strategy-focused organization driven by performance benchmarks and more efficient management processes at a corporate level. This is where Cedar’s assistance & expertise come into play.
Cedar’s Approach
The client sought Cedar’s assistance to enhance and validate its strategy, develop a business performance measurement and strategy implementation system using the Balanced Scorecard, at the Corporate level, as well as cascading it down to its five departments: vehicle sales, service, spare parts, marketing and finance.
- Strategy Map Bubble Diagram) & Measures
- Critical objectives were identified for the Scorecard
- Objective owners were finalized
- Reporting accountabilities had been identified
- Measures were identified for each objective
- Sample initial measurement description templates had been filled for measures
- Projects
- Initial project list had been identified
- Projects were mapped against scorecard objectives
- Project description forms were to be filled out by identified project owners post-workshop
Outcome
The Scorecards & the further cascaded Scorecards developed, helped in achieving the following themes as requested by the client:
- Business growth: Increased overall profitability by driving parts and service revenues, improving vehicle sales by specifically focusing on the fleet segment and by narrowing the gap with a competitor across the model mix.
- Efficiency & Cost Management: Streamline existing business processes specifically those related to business planning and promote greater inter-departmental interaction for better efficiencies in addition to better working capital management
- Brand Building: Create a brand pull for the YKA Nissan Renault brand by advocating benefits of personalized services and quality products, through launch of specific customized campaigns
- Partner Management: Manage all partners including the principals by creating a win-win linkage in all business dealings and by implementing all plans of the Principal through accurate data analysis and reporting
- Personnel Alignment: Develop an HR focus to significantly improve organization competency and motivation including through the implementation of an effective performance management system.