Designing a balanced scorecard (BSC) for a mining supply company

Abstract

The purpose of this research was to formulate and develop broad guidelines for a Balanced Scorecard (BSC) for a mining supply company. This research has specific reference to Bond Equipment (Pty) Ltd. based in Klerksdorp, North West Province, South Africa. These guidelines must assist management to steer the company forward on a strategic way. The guidelines will also guide management to apply the BSC to lower levels in the company, each department and every employee will have its own BSC. This research also includes the improvement of the company`s vision and mission. The BSC must be aligned with both the vision and mission of the company to ensure the successful implementation of a BSC. The BSC is not just an effective measurement and management tool but it is also an effective tool to enhance communication between different departments within the business. Questionnaires were used to gather data from the sample group within the company. A total of 50 questionnaires were distributed to management, professionals and employees that worked for the company for more than 2 years. The head of departments of the company were informed of the research being conducted. Thirty-five questionnaires were received back. The data of the study was analysed and out of these results, broad guidelines were identified for the formulation of a BSC for the company. Three aspects from each quadrant were selected by the participants of the study. The data of the vision and mission of the company were also analysed and possible improvements were identified. The results of the study revealed that the vision and mission must be improved to match the new strategy of the company. Bond Equipment (Pty) Ltd has to diversify and focus not only on quality but also on customer service. The three broad guidelines selected from each quadrant by the participants will form an integral part in the final design of the BSC to all levels of the company. Proposed measurement tools were also recommended to the management of Bond. These measurement tools will assist management to manage the company in accordance with the vision and mission.