Balance Scorecard: Learning Growth Metric
Competition in the dynamic business environment requires companies to grow to succeed. The management has to be concerned with the mechanisms of growing a company by achieving strategic targets. Learning and growth metric assesses how employees and management are collaborating to grow the company and enable employees to grow within the company.
The company is similar and competes with Dell. Competition in the business environment requires the company to grow to have a larger market share continually. The strategic goals of the company are technology leadership, focusing on product, and manufacturing learning. The company’s learning growth measures are concerned with its capability to develop and introduce standard products in the market. The company anticipates introducing new standard products into the market, which will increase the volume of its future sales. The company aims to stabilize its manufacturing process for new products and existing products through the manufacturing growth measure. Percentage of sales is one of the company’s growth measures. The sales measure will be used to track problems in cases where new products’ sales are declining. The measure will enable management to explore existing problems in product design. Also, created by the introduction of new products in comparison to existing products will be examined to determine performance (Graybeal, Franklin, & Cooper, 2018).
Learning growth metric
Perspective Objectives Measures
Learning and growth Product focus, manufacturing learning, and technology leadership Percentage of new product sales
Assessment of competition due to the introduction of new products
Technological companies’ capability of learning, improving, and innovating directly translates into its value. Technology keeps changing over time, creating new demand, thus, calling for firms to manufacture products that will meet the emerging demands. Therefore, the company has to be attentive about its products and manufacturing learning to maintain its competitiveness in the market. The company can improve its value through the introduction of new products. The company has the strategic objective of promoting technology leadership means it has to innovate new technological products.
Most technological firms improve their existing process to meet emerging demands. A learning growth perspective is important in every technology-related company. It promotes the identification of a firm’s human resource skills, organizational culture, and information technology systems. In our case, learning growth perspective will be used to measure the company’s performance in terms of change in sales as a result of introducing new products in the market.
The percentage of sales of new products metric examines how well the new innovative product meet customers expectation. Huge sales mean that the products are in demand because they satisfy consumer needs. However, low percentage sales indicate that innovative products are not meeting consumer needs. When most businesses are at the startup phase, they evaluate their innovation performance in terms of how products fulfill consumer requirements and quality standards (Llorach & Ottosson, 2016). Most important measurement metrics are related to product development and consumer response. Startup businesses emphasize developing a product in collaboration with customers by looking at market knowledge and generated income.
In conclusion, the company is mature, but it has to produce innovative standard products to meet consumer needs. Therefore, it will focus on evaluating the performance of new products in the market to have insights into what they are required to improve. Sales metrics will be vital in assessing the performance of the company.
References
Llorach, C., & Ottosson, E. (2016). The Balanced Scorecard during the early stages of a tech firm: A multiple case study regarding performance management in Swedish tech startups.
Graybeal, P., Franklin, M., & Cooper, D. (2018, July 24). Principles of Accounting, Volume 2: Managerial Accounting – Open Textbook. Opentextbc.Ca; Pressbooks. https://opentextbc.ca/principlesofaccountingv2openstax/