If somebody was working just to be compensated, we probably didnt want them at southwest airlines. The company structure, culture, and human resources have been taken into consideration. How southwest airlines developed its balanced scorecard analysis. With that in mind, lets dive right in to an example of what a balanced scorecard looks like in practice. Balanced scorecard and strategic analysis of southwest airlines. But theres a danger of losing the forest in the trees. A balanced scorecard shows a series of causeandeffect relationships that show how a companys focus on learning and. Positioning southwest airlines through employee branding. 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. This video provides an example of a balanced scorecard with strategy maps.
Monitor airlines performance with these kpis in excel. Keywords balanced scorecard, efqm excellence model. External and internal environment has a great impact on the competitiveness of the firm. Balanced scorecard for southwest airline financial objectives measures targets from bus 475 at university of phoenix. Step 4 your actual performance for each metric is recorded in this column. The balanced scorecard is intended to consider everything important to a companys longterm health. Use these free templates or examples to create the perfect professional document or project.
Balanced scorecard in higher education applied case study. The map below is based on one of the earliest developed for southwest airlines swa in the usa. Southwest airlines developed a business strategy to compete. As of december 31, 2005, it operated 445 boeing737 aircrafts and provided service to 61 cities in 31 states.
Low cost with differentiation financial objectives. The balanced scorecard is one of the most successful, endurable management concepts in. 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. This is the balanced scorecard view of strategy map. Strategic human resource management tools strategic human resource management tools, managers use several tools to translate the companys strategic goals. Get the annual and quarterly balance sheet of southwest airlines company luv including details of assets, liabilities and shareholders equity. 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 a strategy is essentially a theory about how to achieve the organizations goals.
Library of congress cataloginginpublication data niven, paul r. Innovation and learning, or employees, in place of learning and growth, for example. Southwest airlines aim to be the leader in the industry by being the primary choice for the consumers. The airline industry is mired with numerous challenges, from critical flight safety issues to seemingly small issues related to inflight service which also can snowball into a major hassle. Southwest airlines company luv balance sheet yahoo.
The nations largest carrier in terms of originating domestic passengers boarded, swa prides itself on quick turns at. Dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit. The top level target is to achieve its profitability, costs, and revenue goals. Whether you are looking for a professional balanced scorecard software.
The four perspectives embodied in the balanced scorecard were linked together by a series of relatively simple questions and answers. This paper is aims to apply the balanced scorecard approach in educational institutions by replicate the. In this way, information can be built to help formulate a competitive strategy. Southwest airlines balanced scorecard researchomatic. Essay by nilsla, university, bachelors, a, may 2006. Measures that drive performance and a 1996 book, the balanced scorecard. Southwest airlines has been a strong growth company over the last 35 years. Monitor airlines performance with these kpis in excel specific, measurable, actionable, reliable and timebound quantitative measures like key performance indicators can be used to evaluate the performance of various organizations. Video watch the latest explainer videos, case study discussions, and whiteboard sessions, featuring ideas and practical advice for leaders. Walmart, costco, and southwest airlines all offer consistently low prices. How southwest airlines used metrics to reach a higher.
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. An it perspective october 15, 2004, best practices november 21, 2005 it strategy maps. Then, working with different groups in your organisation you can engage them in the conversation about what part of the final measure they will deliver, and how. As a prime example, we can measure the financial perspective area of a bsc with the following measures.
Readers should not assume that the information contained on this site has been updated or otherwise contains current information. Southwest airlines was founded in 1960s, by herb kelleher and rolling king. Airlines balanced scorecard metrics pack the pack includes 5 airlines metrics. The balanced scorecard implementation at southwest airlines has gone through a series of iterations and they are currently in their 3rd generation. For example, consider the linkages in the service management profit chain. I am very pleased to report another strong performance for 2018. Balanced scorecard and strategic analysis of southwest airlines 2241 words apr 25, 2006 9 pages executive summary southwest airlines co. Continue building on our unique position the only short haul, lowfare, highfrequency, pointtopoint carrier in america.
Translating strategy into action, that has been translated into 24 languages. Balanced scorecard and strategic analysis of southwest airlines essay sample. The current strategy of southwest airlines management essay. Airlines balanced scorecard metrics pack strategy2act. British airways company balanced scorecard essay example. My experiences as a balanced scorecard practitioner with a large canadian company taught me that tremendous results are possible with the tool, but to attain. Southwest airline strategy implementation executive summary an analysis of southwest airlines strategic controls has been conducted in order to determine if these controls match, and or enhance, the companies design and strategy. Southwest airlines is an airline carrier that operates within the american domestic market. By the end of this article, youll be a balanced scorecard expert. A strategy canvas is basically a line graph that plots functionsfactors against importance for a company or an organisation and then overlays competitors or industry benchmarks.
Compensation and reward kpi best practices bsc designer. Initial southwest airlines service desk balanced scorecard step 1 six critical performance metrics have been selected for the scorecard. View all luv assets, cash, debt, liabilities, shareholder equity and investments. Real world how southwest airlines developed its balanced. 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. 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. Wall street journals the middle seat released its yearly scorecard for the 8 biggest us airlines. A strategy canvas can be built in quickscore our balanced scorecard software tool. Download as pptx, pdf, txt or read online from scribd. Similarly, customers of southwest airlines have different. A full balanced scorecard example including 6 templates. Southwest airlines swa, based in dallas, operates more than 4,100 flights daily to more than 100 destinations.
Balanced scorecard and strategic analysis of southwest. The scorecard tracks seven different measurements from dot complaints to onetime arrivals to come up with the rankings. Sw is grateful to mahanakorn university, bangkok, thailand, and its. Balanced scorecard for southwest airline financial. 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. The balanced scorecard is the closest management tool to a crystal ball as you will find. Upward airlines reading a balanced scorecard strategy map. The balanced scorecard is a performance management system that can be used in any. For this example, were going to look at upward airlines, a hypothetical airline loosely based on southwest airlines strategy in. Balanced scorecard strategic management airlines scribd. Free download of hr scorecard template2 pdf document available in pdf format. British airways company balanced scorecard essay sample.
How southwest airlines developed its balanced scorecard analysis southwest airlines set operating efficiency as its strategic theme. This firm has been experiencing challenges in maintaining competitiveness with the market. Pdf performance improvement is high on the agenda of many. Chairman of southwest airlines when he is speaking about employee compensation. The company was incorporated in 1967 and is headquartered in dallas, texas. The balanced scorecard focuses on factors that create longterm value traditional financial reports look backward reflect only the past. We suggest a similar balanced scorecard for air india. If we include citations to itthe recent expansion of democracy, what samuel huntington 1991 has called the third wave, started in the mid1970s, first in southern europe, then scholars of democracy and society including all. Step 3 for each performance metric, the highest and lowest performance levels in the benchmark are recorded.
Also read southwest airlines corporate culture essay sample. Each would have its own specific set of indicators. Balanced scorecard in higher education applied case study on arab academy for science, technology and maritime transfer dr. Here is the balanced scorecard view of the southwest airlines strategy. One increasingly popular framework to combine these qualities is the balanced scorecard.
Our 46th consecutive year of profitability is a record unmatched by any competitor in the u. David norton and i introduced the balanced scorecard in a 1992 harvard business. Harr emphasized in class on friday, november 14, 2014 that the balanced scorecard was created by the same folks that created activity based costing. One increasingly popular framework to combine these qualities is the balanced scorecard bsc, and specifically the more recent incarnation, the strategy map.
The bsc is one of the key techniques in strategy formulation and implementation. Related research documents it measurement survey results april 21, 2005, trends it and business alignment. Since southwest airlines is a service company, customer satisfaction. Southwest airlines field tech business practice case study.
1031 267 1342 1427 1099 658 787 1054 1152 248 389 1550 571 402 183 104 868 1548 1390 510 1234 911 435 778 1257 266 1384 1382 768 300 983 951 796 776 1064 1526 1445 148 505 1041 1078 452 345 838 230 368