Module 4 - Background
The Learning and Growth Perspective
Remember the earlier instructions about how to find article linked to Proquest (see Module 1 Background Readings)
Required Readings
Gumbus, A. & Johnson, S.D. (2003, July). The balanced scorecard at Futura Industries. Strategic Finance.85(1). 36-42. Retrieved May 17, 2010, from http://proquest.umi.com/pqdweb?sid=1&vinst=PROD&fmt=6&startpage=-1&clientid=29440&vname=PQD&RQT=309&did=370139621&scaling=FULL&vtype=PQD&rqt=309&TS=1226799369&clientId=29440
Kaplan, R.S. & Norton, D.P. (2004). Measuring the strategic readiness of intangible assets. Retrieved May 17, 2010, from http://www.cma-slp.com/onlinelibrary/OL_English/Strategy%20Implementation/Management%20Accounting/MeasuringTheStrategicReadinessofIntangibleAssets.pdf
Niven, P. (N.D.) Learning and Growth perspective.EPM Review. Retrieved May 17, 2010, from http://www.epmreview.com/Resources/Articles/Learning-and-Growth-Perspective.html
Optional Readings
Gray, D. (2004) Getting the Measure of Intangible Assets. Insight 2004. Chartered Institute of Management Accountants. Retrieved May 17, 2010, from http://www.cimaglobal.com/cps/rde/xchg/SID-0A82C289-98FE483F/live/root.xsl/6383_6630.htm
Sharma, P. (N.D.) BSC - learning and growth. Retrieved May 17, 2010, from http://www.scribd.com/doc/5032774/Balanced-Scorecardlearning-and-growth
Optional Supplemental Materials
Click here for optional supplemental enrichment materials.
BUS499 - BSBA Integrative Project
Module 4 - Case
The Learning and Growth Perspective
The learning/growth perspective of the balanced scorecard presents some particularly interesting challenges. Here is a useful brief summary of the approach:
Niven, P. (N.D.) Learning and Growth perspective.EPM Review. Retrieved May 17, 2010, from http://www.epmreview.com/Resources/Articles/Learning-and-Growth-Perspective.html
Part of the problem is that this perspective seems the most remote from the final payoffs in the financial area - “touchy-feely†rather than good old hard-nosed management. Kaplan and Norton, the originators of the balanced scorecard, have addressed this issue of how to measure the contribution of such intangible assets as human capital, information capital and organizational readiness, pointing out how human capital is most useful when it is concentrated in key jobs involving internal processes that are critical to the achievement of the organization's strategy. The article is fairly long and you don’t need to read it in detail, but it has some ideas that may help you understand this case better:
Kaplan, R.S. & Norton, D.P. (2004). Measuring the strategic readiness of intangible assets. Retrieved May 17, 2010, from http://www.cma-slp.com/onlinelibrary/OL_English/Strategy%20Implementation/Management%20Accounting/MeasuringTheStrategicReadinessofIntangibleAssets.pdf
Our example in this case is Futura Industries in Clearfield UT. They have implemented the balanced scorecard in an interesting way, apparently giving priority to the learning/growth perspective and expecting it to drive the others. Here- how this process has been described:
“Most companies use the balanced scorecard (BSC) to focus on the financial aspects or the operational metrics required by ISO quality certification. But that is not all one unique company uses the BSC for. At Futura Industries, President Susan Johnson built the enterprise's success over the past 3 years on the BSC's foundational level - the learning, innovation, and growth dimension. This dimension provides the building blocks that generate success in the remaining 3 quadrants: customer service, financial, and internal operations. And the results have followed: a 50% increase in revenue without adding personnel from 1996 to 1999. This organization is all about putting people first. So much so that the company of 300 ranks in the top 10 Family Friendly Employers in Utah for the third year in a row. A look at how they have implemented the 4 quadrants of the BSC using the learning innovation, and growth dimension as their foundation is presented.â€Â
The article from which this summary is taken can be found here:
Gumbus, A. & Johnson, S.D. (2003, July). The balanced scorecard at Futura Industries. Strategic Finance.85(1). 36-42. Retrieved May 17, 2010, from http://proquest.umi.com/pqdweb?sid=1&vinst=PROD&fmt=6&startpage=-1&clientid=29440&vname=PQD&RQT=309&did=370139621&scaling=FULL&vtype=PQD&rqt=309&TS=1226799369&clientId=29440
As your case assignment for this module, you are to carefully review this article, and then (in 3-4 pages) prepare your analysis of how Futura Industries implemented the balanced scorecard and its apparent effects.
Assignment Expectations:
Your analysis should be structured along the lines you’ve been using this far in these cases:
Introduction: Why did Susan Johnson, Futura's President, emphasize the learning and growth perspective over the other balanced scorecard perspectives?
Analysis: What specifically does Futura measure, and what types of measurements do they use to evaluate the company's learning and growth?
Conclusion: Do you think these measures capture the full dimensions of the learning and growth perspective as explained in the background materials from this module as well as previous ones? Support your answer with examples and citations.
Evaluation: What is your evaluation of Futura's approach? Does it make good business sense or do you think it could cause problems for the company? Agree or disagree with the issue, then defend your position. Use the readings done so far to decide whether the implementation was done well or poorly.
When your assignment is ready, send it in to CourseNet
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BUS499 - BSBA Integrative Project
Module 4 - SLP
The Learning and Growth Perspective
For Module 4, consider your organization's mission and strategy from the perspective of its learning and growth (from your work on the case, your previous course work, and your background reading, you should be reasonably clear what such activities are). In this section of the assignment you’ll begin to identify objectives and measures relevant to that perspective. Refer back to this presentation on objectives if you need to.
Assignment Expectations:
Once you’re reasonably clear on what- involved, think about your organization and its learning and growth processes, and then:
• Identify at least three objectives for improving the organization's learning and growth, and show how they relate to the mission, vision and strategy of the organization.
• For each objective, develop at least one meaningful performance measure (metric).
• For each objective, identify at least one expected level of performance (target).
• For each objective, identify at least one new action or program that needs to be developed to ensure successful implementation of the organization's strategy (initiative).
• Comment briefly on the relationships of the learning and growth objectives that you've identified here to the financial objectives that you identified in the Module 1 SLP assignment, the customer service objectives you identified in Module 2, and/or the internal business process objectives you identified in Module 3. How do they help to fulfill those objectives? If they don't (and they don't have to), what makes them more important than objectives that would relate to customer service, business processes, or financial operations?
• Finally, do you wish to make any changes to your Module 1, 2, or 3 objective write-ups in light of your Module 4 experience?
Here- a table that you may wish to copy and fill in (the boxes are expandable - take all the space you need to be complete in your descriptions. No more than 2-3 pages should be necessary.)
Objective Measure Target Action
Relationships to other objectives
Revisions (if any) to Module 1, 2, and/or 3 Objectives
Objective/Module Measure Target Action
USA 
India