Southwest in recent years in 2019, southwest airlines was the largest carrier in the united states 1 1 based on the u. Oct 02, 2014 southwest airlines was founded in 1960s, by herb kelleher and rolling king. Samsung samsung is the technologybased organization that will be the subject for my balanced scorecard. Translating strategy into action, that has been translated into 24 languages. This post contains references to products from one or more of our advertisers. Balanced scorecard report strategy or stakeholders.
Southwest airlines field tech business practice case study. Hold more effective team meetings with prezi video. Strategic principles allow organizations to make decentralized decisions while maintaining cohesive strategic action. A critical analysis of balanced scorecard as a performance measurement tool. Balanced scorecard and strategic analysis of southwest airlines. Overall, the southwest airlines balanced scorecard shows that welltrained crews mean faster turnaround and more ontime flights, which lead to. Southwest airlines serves 103 domestic destinations and 9 international destinations in 7 countries, as of april 2021. Luckily, there are lots of free and paid tools that can compress a pdf file in just a few easy steps. The balanced scorecard integrates an appropriate mix of short and longterm financial and nonfinancial performance measures used across the organization, based on the organizations strategy. Conceptual foundations of the balanced scorecard 3. A strategy canvas can be built into spider impact our balanced scorecard software tool. I write this at a critical time for our country and our world, as we are gripped by the novel coronavirus covid19 pandemic.
Page 4 4 southwest in recent years in 2019, southwest airlines was the largest carrier in the united states1 1 based on the u. David norton and i introduced the balanced scorecard in a 1992 harvard business. A mixture of financial and nonfinancial measures kaplan and norton, 1992,1993, 1996a, b. Each category contains specific objectives, targets, metrics, and related initiatives. How southwest airlines used metrics to reach a higher plane. Southwest airlines bonnie endicott director talent management southwest airlines. But theres a danger of losing the forest in the trees. Southwest service desk global database top quartile efficient and effective lower quartile middle quartiles effective but not efficient middle quartiles efficient but not effective initial southwest airlines service desk balanced scorecard step 1 six critical performance metrics have been selected for the scorecard. Founded in 1938 in seoul, south korea, samsung electronics co. Balanced scorecard has been implemented in several airlines, the most documented one being the balanced scorecard implementation at southwest airlines. Updated 062619 southwest airlines makes it really easy to book your travel and check in online. A pdf file is a portable document format file, developed by adobe systems. The balanced scorecard isnt a simple project that can be delegated to a person or team and completed in a couple of weeks or months.
Hotels, ricoh, southwest airlines, sprint, ups and wendys have been examined in detailed case studies kaplan and norton, 2001b. Feb 22, 2012 balanced score card free download as powerpoint presentation. Its vision is to continue being the only shorthaul, lowfare, highfrequency, pointtopoint carrier in america. Balanced scorecard, public sector, jonkoping county council background. In the scope of this strategy, in shortrun, expanding into global markets has not been chosen as a financial objective. Southwest boasts the best ontime record, best baggage handling, and fewest customer complaints in the airline industry and won the industrys triple crown award for best airline five times in a row from 199296. Pdf file or convert a pdf file to docx, jpg, or other file format. How southwest airlines developed its balanced scorecard analysis. E 2001, balanced scorecard for projects, project management journal, vol. The company was incorporated in 1967 and is headquartered in dallas, texas. Kaplan and norton developed the balanced scorecard in 1992. Balanced scorecard and strategic analysis of southwest airlines essay by nilsla, university, bachelors, a, may 2006 download word file, 9 pages download word file, 9 pages 4.
In an industry that consumers love to hate, southwest is the company travelers love to love. A strategy is essentially a theory about how to achieve the organizations goals. Southwest airlines use of the employee branding process to gain an organizational bpositionq in the minds of customers. Southwest airlines balanced scorecard southwest airlines balanced scorecard introduction southwest boasts the best ontime record, best baggage handling, and fewest customer complaints in the airline industry and won the industrys triple crown award for best airline five times in a row from 199296. As of december 31, 2005, it operated 445 boeing737 aircrafts and provided service to 61 cities in 31 states. Balanced scorecard definition, explanation, example. Pdf a critical analysis of balanced scorecard as a. Southwest s overall strategy centers around the theme of operating efficiency. Balanced scorecard strategic management airlines scribd. Nrdcs 2017 aviation biofuels scorecard nrdc key findings a small group of companies are leading the aviation industry toward. Balanced scorecard in higher education applied case study on. Scribd is the worlds largest social reading and publishing site. How southwest airlines used metrics to reach a higher. It depicts how southwest airlines swa creates value.
Book flight reservations, rental cars, and hotels on. It was the first airline with a frequent flyer program to give credit for the number of trips taken, not just the number of miles flown, and also pioneered senior discounts, fun fares, fun packs, a sameday air freight delivery. Balanced scorecard and strategic analysis of southwest airlines essay sample southwest airlines co. The company was incorporated in 1967 and is headquartered in dallas. Balanced scorecard for southwest airline financial objectives measures targets from bus 475 at university of phoenix. Pdf is a hugely popular format for documents simply because it is independent of the hardware or application used to create that file. Southwest airlines balanced scorecard framework strategic theme. The hypotheses underlying the balanced scorecard are indicated by the arrows in the diagram. The role of strategic planning and strategic management in the courts institute for court management icm fellows program 2015 2016 court project phase may 2016 peter c. If youve left an item onboard the plane, please notify a southwest airlines customer service agent before leaving the airport so he or she can try to retrieve your item.
We can see here immediately that southwest airlines has created a differentiated strategy where they have cut out. Southwest airlines swa, based in dallas, operates more than 4,100 flights daily to more than 100 destinations. Operating efficiency objectives profitability more customers fewer planes market value seat revenue plane lease cost 30% cagr 20% cagr 5% cagr measurement target initiative fewer planes customer internal flight is on time lowest prices more customers flight is on time lowest prices faa on time. This article explains what pdfs are, how to open one, all the different ways. For example, if we overlay southwest airlines on the graph above, it would look something like this.
This problem is compounded because the agreements reached. The nations largest carrier in terms of originating domestic passengers boarded, swa prides itself on quick turns at the gate from the time of arrival to time of departure. Balanced scorecard for southwest airline financial objectives. Managing directorinvestor relations, southwest airlines co. An awardwinning team of journalists, designers, and videographers who tell brand stories through fast companys distinctive lens what. Southwest airlines aim to be leader in pricing and leader in southwest. Southwest airlines balanced scorecard framework financial strategic theme. Step one is an assessment of the organizations foundations, its core beliefs, market opportunities, competition, financial position, short and longterm goals, and an understanding of what satisfies customers. This framework has given the management the opportunity to better understand how the organization is functioning. Benchmarking is one of the strategies that facilitated southwest airlines to design a successful model in the airlines industry, one that was further considered to be a benchmark for the entire world.
Harr emphasized in class on friday, november 14, 2014 that the balanced scorecard was created by the same folks that created activity based costing. Video watch the latest explainer videos, case study discussions, and whiteboard sessions, featuring ideas and practical advice for leaders. Stewart 2001, gives a holistic view about balanced. Answer of performance metrics and the balanced scorecard lo 1, 2 southwest airlines is known for high aircraft utilization an average of 5. This document explains the strategic principle framework, including examples, defining attributes, relevant crucial situations, and an approach to strategic principle development. An oversized pdf file can be hard to send through email and may not upload onto certain file managers. If you have left the airport, you will need to file a lost item report. Reading from the bottom of the balanced scorecard, the hypotheses are. In that volume and in each subsequent book devoted tothe balanced scorecard, kaplan and norton have discussed strategy maps. Below are the available bulk discount rates for each individual item when you purchase a certain amount register as a premium educator at hbsp. Low cost with differentiation financial objectives profitability fewer planes more customers measurement market share plane lease cost revenue per seat per mile customer satisfaction survey triple crown on ground time on time departure rank 1 target initiative fuel efficiency dependence on travel. In longrun this objective can be added to the designed balanced scorecard.
Rural health resource center performance improvement. Department of transportations most recent reporting of domestic originating passengers boarded. Find low fares to top destinations on the official southwest airlines website. Southwest airlines book flights, make reservations. The year 2015 was a gratifying, successful, and recordsetting year. This is the most common problem in implementing strategy. Step 3 for each performance metric, the highest and lowest performance levels in the benchmark are recorded. List of southwest airlines destinations the following is an overview of all southwest airlines flights and destinations.
We believe everyone should be able to make financial decisions with confidence. Initial southwest airlines service desk balanced scorecard step 1 six critical performance metrics have been selected for the scorecard. Similarly, customers of southwest airlines have different. Our extension also acknowledges the key role the organizations mission and values play in the employee branding process, and recognizes that employees must have knowledge of. Since southwest airlines is a service company, customer satisfaction. Much of our country is suffering, not only from the health crisis presented by the pandemic, but also the economic crisis that unfolded in march. The balanced scorecard includes customer, financial, internal, and learning categories.
One of the more powerful elements in the balanced scorecard framework, a balanced scorecard strategy map, clearly visualizes your strategy for everyone to see. Southwest airlines balanced scorecard researchomatic. Ch balanced scorecard bsc traditional performance measurements measurements are not in tune with strategic. Measures that drive performance and a 1996 book, the balanced scorecard. What it takes to run a great virtual allhands meeting. Comparison first of all, garuda indonesia used its balance scorecard not involving their targets. This writer says theres a lot to love about southwests loyalty program, from the ease of award flights to the coveted companion pass. Dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit. This study will thus analyse, interpret and evaluate the balanced score card concept and its effects on the two companies. Dec 18, 2018 southwest airlines remains steadfast in its focus to sustain our proven track record, unmatched in the airline industry, of preserving our profitability, as well as maintaining a balanced approach. Despite its quirks, im a big southwest airlines fan and in this post, i say why.
Balanced scorecard and strategic analysis of southwest airlines essay sample. Strategy determines which customer segments a company has decided to serve and satisfy, and the value. For example, consider the linkages in the service management profit chain. It is a complete revolution of the way your organization manages. View all luv assets, cash, debt, liabilities, shareholder equity and investments. Southwest airlines has been a strong growth company over the last 35 years. Balanced scorecard southwest airlines ppt to pdf srny. The comparison we have here between garuda indonesia and southwest airlines is that in the world of commercial flights, southwest airlines is known to have a special characteristic, namely cheap airfares. Paul niven and the balanced scorecard bsc practitioner first, then consultant, and writer led a bsc implementation with a canadian company in the mid90s have consulted with bearing point chicago and csc san diego formed the senalosa group in 2001 have written 3 books and many articles on the subject of balanced scorecard.
Balanced scorecard study samsung 91 words bartleby. By the end of this article, youll be a balanced scorecard expert. Delta however does not use the max and may capitalise from the groundings. Southwest airline is a usa based lowcost airline company and is also the worlds largest nofrills airline. Having a clear strategy, translated into strategy map gets you to start the people in your organisation may still be confused about what you want them to do and how they are supposed to make your strategy happen. Balanced scorecard and strategic analysis of southwest.
Continue building on our unique position the only short haul, lowfare, highfrequency, pointtopoint carrier in america. A strategy map is a onepage graphic that lays out your strategic objectives for you to. Positioning southwest airlines through employee branding. Communication is the vital factor for success with the balanced scorecard. Upward airlines what is a balanced scorecard strategy map. Balanced scorecard in higher education applied case study. Balanced scorecard collaborative is a new kind of professional services. Real world how southwest airlines developed its balanced. The program involves a simple batch file system where the user creates a data. A full balanced scorecard example including 6 templates. The balanced scorecard is intended to consider everything important to a companys longterm health. We will make every effort to locate your item and return it to you. Southwest airlines have different expectations of performance than the business and firstclass customers who fly british airways.
A balanced scorecard consists of an integrated set of performance measures that are derived from the companys strategy and that support the companys strategy throughout the organization. The planes are getting a colorful new paintjob, while the brand ditches helvetica for a custom typeface. After five years of intense work on five strategic initiatives, 2015 was the first full year to demonstrate results and the results were superb. Using its lowcost, passenger friendly, pointtopoint operational strategy, southwest has been able to sustain considerable growth year after year and remain profitable for 33 straight years. Operating efficiency financial fewer planes customer internal learning profitability more. As a prime example, we can measure the financial perspective area of a bsc with the following measures. In that book, kaplan and norton write, the strategy map has turned out to be as important an innovation as the original balanced scorecard itself. This means it can be viewed across multiple devices, regardless of the underlying operating system. We may receive compensation when you click on links to those products. Ivan cahue balanced scorecard april 22, 2017 the balanced scorecard i found is for southwest airlines. The balanced scorecard is a widelyaccepted organizational performance model that ties strategy to measurable results in four critical areas.
Pdf developing and using balanced scorecard performance. We partner with organizations to execute strategy, transfer knowledge, and build capabilities to deliver results fast. The paper uses the following structure for organizing the origin and subsequent development of the balanced scorecard. Learn about tips and options for checking in for your next flight via its website, a smartphone or by telephone on southwest airlines.
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