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Measurement System

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The primary objectives of this case were to create a performance measurement system by balanced scorecard in order to understand how the company has performed and its impact on performance. The analysis considers internal and external factors of the scorecard to the company. Balanced scorecard

The KaBoom!’s mission is to change the situation of “kids rich, playground poor” around the country. To meet the mission, the company has to help the funding partners build their brands, develop their human resources and enhance their public relations efforts. As the performance of the company was not well enough, the company needs a better performance measurement system. In other words, the company needs an effective balanced scorecard to support. Relationship within Balanced scorecard (see Appendix 1)

The four perspectives in balanced scorecard are affected by each other. For any type of business, finance is always the foundation of the company. The successful finance is able to support the company’s internal operation as well as learning and growth. The objective of internal operation is to know which processes are important and to make the process more efficient. Therefore, meeting the objective may satisfy the companies’ customers and shareholders. In addition, from learning and growth perspective, the company may focus on training employees and extending the organization’s culture, which will cause the sustainability of the company. Also, how the business performances directly influences the degree of customers’ satisfaction. In contrasts, the satisfaction of customers will lead a better financial performance. Four Perspectives of Balanced Scorecard

* Financial perspective
We picked three measure methods to improve the financial performance. (See appendix 2) First, the company can use the Growth Balance Ratio to trace the growth of revenue and expenses. If the growth of revenue during one year exceeds the growth of expense, the target will be met. Second, the reason of picking Material Cost Ratio is to save more cost and serve more children by using less material. The third one is Rate of Return which can increase the rate of return to the funding partners. Adequately utilizing the charity from communities could provide more benefits to society. The last one is the ratio of shareholder awareness, indicated by the frequency of shareholders’ awareness (based on the times of advertisement on build, or activities) via Kaboom! / The average frequency of shareholders’ awareness via non-profit companies. The ratio>1 indicates that the reputation and awareness received by shareholders of Kaboom! is more than that received by shareholders of most of other non-profit companies. * Learning and growth perspective

For the learning and growth perspective, first, we are going to focus on the employment satisfaction through doing surveys. Since it is the best way to reduce the turnover rate and maintain the employees with high skills. Second, developing and extending the business’s culture can be achieved by the evaluation of joined communities and trained employees. Finally, the employment performance appraisal is the most normal way to maintain a high competence group by communicating with employees monthly to make sure they are able to perform their jobs on time. (See appendix 3) * Internal business process perspective

First, the Staff efficiency ratio shows how many human resources are used per builds. The lower the ratio means the higher the work efficiency. This ratio could increase the efficiency of human resources and the productivity of the company. Second, Maintenance cost ratio can reduce the maintenance costs, in order to improve the quality of builds and lengthen the lifetime. This ration can also be compared with previous years and the industry average rate. The third measurement is Cost efficiency ratio that shows how well the company utilized every $1 spend on build. This ratio will also be compared with the previous year’s ratio and other non-profit companies. (See appendix 3) * Customer perspective

Since one of target of the company is constructing more playgrounds and skate parks in low-income and urban areas in order to benefit the society, we pick the number of building in low-income communities divided by the overall buildings so that it can show the average capacity of builds provided to poor children. In addition, the Customer satisfaction rate which based on customer satisfaction questionnaire will improve the ability to abstract and maintain the customers. (See appendix 4) Recommendation

Based on the balanced scorecard analysis, we recommend that KaBoom! should reduce their resource cost and improve the efficiency on each operation process. As a non-profit company, KaBoom! should focus on how to use the limit resources to create more social benefits. In addition, KaBoom! needs to advance their organization culture in order to extend their social influences and then attract more communities to join in. Inquiries

If there are any questions or concerns regarding any aspect of the attached report, please contact us at 250-574-2872. We are looking forward to cooperating with you again. Kamloops, BC, Canada V2E 1M4

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