STRATEGY MAP AND BALANCED SCORECARD

MAYO CLINIC AND FLIPKART

Submitted by

GROUP 4

Ashwini G. BhatDeblinaDutta

CydwelMascarenhasRavi Kiran

RizwanHabibRoma PriyankaSubinMammen

Mayo Clinic Strategy Map and Balanced ScorecardMayo Clinic is a not-for-profit medical practice and medical research group based in Rochester,

Minnesota, specializing in treating difficult cases (tertiary care). Patients are referred to Mayo Clinic from

across the U.S. and the world, and it is known for innovative and effective treatments. Mayo Clinic is

known for being at the top of most accredited quality standard listings; for example, it has been near the

top of the U.S. News & World Report List of "Best Hospitals for more than 20 years". The practice is

distinguished by integrated care, and a strong research presence is evidenced by the fact that over 40% of

its resources are devoted towards research (rather than just medical practice).

• Primary Value : The needs of the patient come first

• Mission : Mayo Clinic will provide the best care to every patient every day through

integrated clinical practice, education, and research

• Vision : Mayo Clinic will be the premier patient-centered academic medical organization

Satisfy

Balanced Scorecard and Strategy Map

The balanced scorecard is a strategic planning and management system that is used extensively

in business and industry, government, and nonprofit organizations worldwide to align business

activities to the vision and strategy of the organization, improve internal and external

communications, and monitor organization performance against strategic goals. It was originated

by Drs. Robert Kaplan and David Norton as a performance measurement framework that added

strategic non-financial performance measures to traditional financial metrics to give managers

and executives a more 'balanced' view of organizational performance.

A strategy map is a diagram that is used to document the primary strategic goals being pursued

by an organization or management team. It is an element of the documentation associated with

the Balanced Scorecard, and in particular is characteristic of the second generation of Balanced

Scorecard designs that first appeared during the mid 1990s.

IMPROVE STAFF SATISFACTION,RETENTION AND RECOGNITION

STRENGTHEN EDUCATION AND TRAINING

HAVE THE RIGHT PEOPLE IN THE RIGHT PLACES AT THE

RIGHT TIME

DEVELOPING TEAMS AND A CULTURE OF

TEAM WORKIMPROVING DIVERSITY

ACHIEVE THE HIGHEST LEVEL OF PATIENT

SERVICE AND SATISFACTION

MAINTAIN A REPUTATION OF

HIGHEST QUALITY OF SERVICE

BUILDING AND MAINTAINING A HIGHLY COMITTED WORK

FORCE

IMPROVE RESOURCE UTILIZATION, REDUCE COSTS AND PROVIDE

HIGH QUALITY

NOT FOR PROFIT MODEL

DEVELOPING SOPs AND PROTOCOLS

MAINTAINING OPERATIONAL EXCELLENCE

MAINTAIN HIGHEST LEVEL OF QUALITY CARE AND

SAFETY

ACHIEVE SUFFICIENT FUNDING FOR

RESEARCH AND EDUCATION

LEVERAGING REAL TIME, WEB BASED

APPLICATIONS

The Strategy Map and Balanced Scorecard are based on the interrelation of four specific

perspectives of your business: financial, customer, internal process, and learning and growth.

The financial perspective describes the traditional strategic objectives in financial terms, such as

return on investment, revenues, profitability and cost. The customer perspective defines the value

proposition the organization intends to use to generate sales and loyalty from targeted customers.

The internal process perspective identifies the critical few processes that create and deliver the

customer value proposition. The learning and growth perspective identifies the human capital

and organizational climate needed to support the internal processes. The Balanced Scorecard is

developed through the Strategy Map.

Balanced Scorecard of Mayo Clinic

Perspective Measuring Potential Measures

Customer How do we know we are

meeting our customers’

needs?

Customer Satisfaction

Customer retention

Quality Reputation

Number of Tests

Complaints

Financial Are we performing

financially?

Revenue

Net Income

Expenses

Profit as % of sales

Revenue from new tests

Reimbursement Rate

Amount to be ploughed in

Internal

Business

Process

What must we excel at

internally?

How will we satisfy both

our customers and our

financial needs?

Test Turnaround Time

Number of events and number of errors

Number of Revised Reports

Space Utilization

New Tests Introduced

Waste Reduction

Regulatory Audit Results

Organization

Learning

and Growth

How do we support our

goals and improve as an

organization?

Employee Retention

Turnover

Employee Satisfaction

Education/training events

Continuous improvement projects

Research Projects

Peer reviewed articles

IT improvements

COMPARISON WITH FLIPKART

Flipkart is an e-commerce business, and the strategies to make the business model work changes

drastically, as the focus changes. Compared to the traditional model of bookstores, where people

physically go the store and search through the shelves, in an e-commerce model, the main

interface is the website. Thus, a user-friendly and secure web interface becomes important.

Another important aspect of e-commerce business is the supply chain logistics involved in

delivery of goods and services. Also, compared to traditional outlets, there is no investment in

terms of physical space. Thus, in order to compare Mayo Clinic and Flipkart business models, a

strategy map and Balanced Score card is drawn for Flipkart. Flipkart strategy map is prepared

for 2007, when the company began its operations and where it currently stands, along with what

it envisages for the future are drawn. Also, notable differences within its strategy map as the

company has grown are also observed.

FLIPKART

It was a humble beginning for two former software developers for Amazon.com who set out in

2007 to beat their one-time employer at its own game long before Amazon entered India.

Flipkart is now arguably the country’s largest and most exciting ecommerce company. It

employs 4,500 people and will grow to 5,000 people by March next year. The website offers

11.5 million book titles, apart from products across 11 other categories such as mobile phones,

computers, cameras, music and home appliances. It claims to ship more than 30,000 items per

day across categories. The company is not yet profitable, but reported revenues at Rs. 50 crore

for the last financial year ended March 2011. It projects an unbelievably spectacular jump to Rs.

600 crore in revenues by March next.Flipkart began with selling books, since books are easy to

procure, target market which reads books is in abundance, books provide more margin, are easy

to pack and deliver, do not get damaged in transit and most importantly books are not very

expensive, so the amount of money a customer has to spend to try out one's service for one time

is very minimal. Flipkart sold only books for the first two years. Flipkart started with the

consignment model (procurement based on demand) i.e. they had ties with 2 distributors in

Bangalore, whenever a customer ordered a book, they used to personally procure the book from

the dealer, pack the book in their office and then courier the same. In the initial months the

founder's personal cell numbers used to be the customer support numbers. So, in the start they

tried their best to provide good service, focus on the website - easy to browse and order and

hassle-free, and strove hard to resolve any customer issues. Since there were not any established

players in the market, this allowed them a lot of space to grow, and they did in fact grew very

rapidly.

Flipkart had a revenue of 4 crore in FY 2008 - 2009, 20 crore in FY 2009 - 2010, 75 crore in FY

2010 - 2011, and the revenue for FY 2011 - 2012 which ends on 31 Mar 2012 is expected to be

500 crore. This is indeed a massive growth. The company targets revenues of 5000 crore by

2015.

THE FACTORS THAT LEAD TO THE GRAND SUCCESS OF FLIPKART:

1) They always strove to provide great customer service. Flipkart customers are more happy than

with some of their competitors like Tradus.in, Indiaplaza.com; i have myself experienced this a

couple of times.

2) Their website is great, easy to use, easy to browse through the products, add products to

wishlist or to a cart, get product reviews and opinions, pre-order products, make payments using

different methods, in short hassle- free and convenient.

3) A very important point is that they introduced the option of cash on delivery and card on

delivery. This way people demonstrated more confidence in buying products online. Although

today Flipkart sells 20 products/min and has a massive customer base, still more than 60% of the

Flipkart's customers use Cash on Delivery and card on delivery methods. This is because of two

reasons, one is many people do not know how to make payments online. And secondly people do

not have immense trust in e-commerce in India. Flipkart also provides a 30 day replacement

guarantee on its products and EMI options to its customers for making payments.

4) Flipkart's reason of success is that it has a great customer retention rate, it has around 15 lac

individual customers and more than 70% customers are repeat customers i.e. they shop various

times each year. The company targets to have a customer base of 1 crore by 2015.

THE STRATEGY MAP OF FLIPKART IN 2007

THE STRATEGY MAP OF FLIPKART TODAY AND FUTURE

BALANCED SCORECARD OF FLIPKART

SCORECARD

PARAMETERSOBJECTIVES MEASUREMENT TARGETS INITIATIVES

Financial Profitability

Increased revenue

Sales Revenue 10% per year Optimize value chain

Sourcing partners

Customer Customer satisfaction

Repeat customers

Lifetime value of a customer

Shopping duration

New/total customers

% New vs returning customers

Average order per customer

Customer ranking

Ratio equal to one

98% satisfaction

6% per year First in

industry

Quality management

Customer loyalty programs

Internal Improve stock movement

Outbound logistics

Inventory turns per year

Delivery time

5 times per month

<7 days

Cycle time optimization program

Quality management

Learning Staff satisfaction

Improve training investment outcomes

Training participation %

Training Investment Factor

Training Assistance utilization

Employee Turnover

40% per year 10% per year 5% reduction

per year 10% per year

Stock ownership plan

Customer Care Training