6. What other actions did VWB take to support strategy implementation? The other action that VWB can take to support strategy implementation is by introducing the dashboard. Dashboard can be use to set the initiatives, task, metrics, and objectives for each group within it. The management can use it to measure and monitor the relevant information and activities timely by using the performance metric, and then fix potential problems when it come out. The keys to an effective dashboard initiative include proper definition of target audiences and design of metrics, simplicity and manageability, and sustained leadership through a dashboard "champion". Each strategic initiative will have champion and coordinator that monitor the project team in the accomplishment of main milestones. The champion will lead the project team in making the decision on how to accomplish the main milestones. Besides that, dashboard also can minimize redundancies, and set clear vision of the company. The information that is set out on the dashboard is cross functional which every department can know their job in detail. Dashboard also refines and communicates the strategy to the supplier and dealer. Company launches a program to the supplier and dealer in order to increase their production and service efficiency respectively. The program that had been launched is supplier day, supply award, and dealer academy. Schmall will monitor the display list for the status of top 400 programs (2007) which had been assigned to 400 executives committee to the dealer in order to help them to increase their service efficiency. Company also upgrades the quality of vehicles ship to each dealer. The executive also had been assign to understand any problems being experience by the dealer, coach the dealer and help the dealer install better management systems. Regarding this matter, the management needs to report to the executive’s company about the result from the program. Schmall will monitor the program via big four display list on the wall near his office. Company also uses hand and soft data to track the performance result. Besides that, to make the employee more understand about the strategy, the company was launched multiple communication programs including specific event, discussions, training at regular meetings and internal competitions among workforce. From the contest, the winner was come out with a mascot name Giga which could symbolize and communicate the new strategy. Furthermore, the company also provides board game which require workforce to answer the question that related to the strategy by advanced their tokens. Besides, there is an interactive role play game based on customized Learning Map, visual representation of VWB’s history, current competitive environment, and strategy that was introduced to the employee. They will play the game in a group team. In addition, the company was put big electronic display that post the information about the strategy map, near the production line and also put the information of strategy map in the company’s paper, electronic paper and intranet portal. Moreover, the company also runs workshops to teach the employee about the strategy map. Other than that, compensation is also important to increase the employees’ motivation in achieving the goal. Regarding that matter, the company gives the compensation to their workers who perform very well in their job. There are two types of compensation which are financial and non-financial. For the financial rewards, the non-executive and the executive will get bonus according to their job accomplishment and the bonus plan. On the other hand, for non-financial reward, the company will reward individuals and groups who have significant contributions to improving the company BSC metrics. The company also announced the winner for the best project for each category in the annual meeting of 1500 participants to motivate the employee.
7. How can Schmall and his team use the scorecard to deal with the challenges faced by the company in January 2009? What should Schmall do in January 2009? The global financial crisis started at the end of 2008. Regarding this matter, VWB is seeing a depression and reduced growth rate in the Brazilian economy. Schmall and his team should focus to the parts of the BSC (balance scorecard) in order to handle the uncertainty for the future period. They should work more closely with organization dealers and develop with them new techniques and service to attract new customers. For example, the dealer can give free maintenance for purchase of new cars and extra discount if the customers purchase car more than one. Besides that, Schmall and his team should be more focus on achieving the maximum production capacities by closely monitoring dealer’s weekly sales, also increase the process efficiency by minimizing the work hour per car. Furthermore, investing on innovative techniques to reduce the car cost and sustain its reliability can be good time to invest during recession. In addition, the company should produce effective strategy. Activity-based costing (ABC) can be used as an effective strategy budget. There are three linkages between the ABC and BSC, which are operational linkage, customer profitability linkage, and budgeting linkage. In the operational linkage, the activity-based costing can identify the driver for indirect cost and support cost. When the management used the activity base costing, they can trace expenses accurately to the processes of product development, marketing and sales, manufacturing, distribution, and service delivery. This cost driver will able to allocate the cost, quality, and time accurately. The second linkage occurs when the ABC model used to measure the profitability of individual customer. It is included customer satisfaction and customer loyalness. In relation with the budgeting, ABC model is used for activity-based budgeting to combining information on the forecasted volume and mix products and produce efficiencies to produce a bottom-up budget. In the bottom-up budget, the non-executive also involve in producing the budget. Lastly, Schmall must conducting meeting frequently with the all manager for each divisional to increase the performance and discuss about the new strategy and the progression. When they seat together, the decision will be more accurate.