Write a minimum of a1,400-word strategic objectives summary. Include your balanced scorecard (table) and its impact on all stakeholders, and the communication plan.
Identify key trends, assumptions, and risks in the context of your final business model.
Develop the strategic objectives for your new division of the existing business in a balanced scorecard format in the context of key trends, assumptions, and risks. The strategic objectives are measures of attaining your vision and mission. As you develop them, consider the vision, mission, and values for your business and the outcomes of your SWOT analysis and supply chain analysis.
Consider the following four quadrants of the balanced scorecard when developing your strategic objectives:
- Shareholder Value or Financial Perspective, which includes strategic objectives in areas such as:
- Market share
- Revenues and costs
- Competitive position
- Customer Value Perspective, which includes strategic objectives in areas such as:
- Customer retention or turnover
- Customer satisfaction
- Customer value
- Process or Internal Operations Perspective, which includes strategic objectives in areas such as:
- Measure of process performance
- Productivity or productivity improvement
- Operations metrics
- Impact of change on the organization
- Learning and Growth (Employee) Perspective, which includes strategic objectives in areas such as:
- Employee satisfaction
- Employee turnover or retention
- Level of organizational capability
- Nature of organizational culture or climate
- Technological innovation
Evaluate potential alternatives to the issues and/or opportunities identified in the SWOT Analysis paper and table you completed in Week 3.
Create at least three strategic objectives for each of the four balanced scorecard areas. Base your solutions on a ranking of alternative solutions that includes the following:
- Identify potential risks and mitigation plans
- Analyze a stakeholder and include mitigation and contingency strategies.
- Incorporate ethical implications
Develop a metric and target for each strategic objective using a balanced scorecard format.
- Example: a strategic objective in the shareholder or financial perspective is to increase market share. A metric to actually measure this strategic objective of market share increase is, "The percentage of increase in market share." The target is the specific number to be achieved in a particular time period. The target for the metric of "Increase market share" could be "Increase market share by 2% for each of the next 3 years" of an increase of 2% per year for 3 years.)
Outline a brief communication plan discussing how you will communicate the company's strategic objectives that includes the following:
- Define the purpose.
- Define the audience.
- Identify the channel(s) of communication and why you selected that channel.
Format paper consistent with APA guidelines.
week one, week two, swott table and example on how paper should look attached.
Running head: ORGANIZATIONAL TECHNOLOGY INTEGRATION EVALUATION OF Nov. 1, 2010 1 Organizational Technology Integration Evaluation of Sysco Food Service of Denver
Different technologies used within an organization must be in alignment with the
organization?s vision and mission. In other words, the technologies used to accomplish the
objectives of an organization must serve to support the critical success factors (CSF) and
performance areas used when achieving the mission of the organization. An example of a
strategic tool used to accomplish alignment and an increase in performance is a technological
scorecard. The purpose for this paper is to create a technological scorecard that is used by Sysco
Food Services of Denver (SFD) to evaluate the different types of technologies used throughout
the organization. The paper will conclude with recommendations based on other organizations
best practices when integrating different types of technology.
Problem and Purpose Statements
Whenever an organization creates a strategic plan, management must clearly define a
problem and supporting purpose statement (Shane, 2009). For instance, management must have c
defined objectives when integrating a new technology with an organization. In the case of SFD,
management must evaluate how technology affects the other departments because all of the
departments within SFD are interdependent. An example of this interdependency is found
between the inbound warehouse and merchandising departments.
The senior management of SFD is unsure on how to strategically implement ?Project
212? by the end of the calendar year 2011, not to mention, there is resistance to this change.
Specifically, there are a number of senior level managers comfortable and afraid of the wholesale
change that is about to happen. Purpose Statement:
The purpose for the evaluation of technology integration within SFD is to evaluate the
different technologies along with the usefulness of these technologies in ?Project 212.?.
?Project 212? and Sysco Food Services of Denver
The Sysco Corporation is the largest distributor of food service products in the world
with 169 subsidiaries throughout North America and sales surpassing 37 billion dollars in fiscal
year 2010 (Sysco Corporation, n.d.). The Sysco Corporation is in the process of transforming
how they do business by reorganizing the autonomous structure of the corporation and its
subsidiaries. The entire corporation is undertaking an initiative called ?Project 212.? SFD is the
eighth largest subsidiary and the third largest contributor to pre-tax earnings within the Sysco
Corporation (Sysco Corporation, n.d.).
The purpose for this initiative is to consolidate and centralize many functions duplicated
in each of its subsidiaries, thereby, driving cost out of the supply chain, becoming more
competitive, and gaining market share by offering products at more competitive prices.
According to Bill Delaney, the president and chairperson of the board for the Sysco Corporation,
technology and employee buy-in will be critical to the success of ?Project 212? (Sysco
The senior level of management of Sysco has to have a well defined vision so the
executive team began with starting with the end in mind to create the vision for ?Project 212?
(Chris S. DeWitt, personal communication, July 23, 2010). For instance, this executive
leadership team was made up of the senior officers and Sysco Board of Directors, who
understood the importance to the longevity of the Sysco Corporation to become more efficient
and competitive. The goal was set to reduce the corporation?s operating expense to a trending rate of 8.9% by the end of fiscal year 2013 (Sysco Corporation, n.d.). The same management
team understood the importance of communicating this to the entire organization while working
hard to keep all of the employees updated on this transition in an attempt to minimize negativity
and job insecurity during the transition.
The Model for Alignment in Technology
A socio technological system (STS) is a combination of people and technology (Berg
Olsen, Pedersen, & Hendricks, 2009). In otherwords, components of a STS can include software,
hardware, employees, customers, procedures, and physical surroundings. Some examples of
what makes up a STS in the food distribution industry are the warehouse, trucks, information
technology, employees, and customers.
According to Parker (2008), "call it a mission, goal, objective, or task, employees must
know why it exists and what him or her should be doing at the end of a meeting, by the end of a
quarter, at year's end, or perhaps five years from now" (p. 20). In otherwords, it is important for a
team to have a clearly defined purpose and understanding of what they are doing, not to mention,
trust in what they are doing. An example of communicating the progress in achieving the vision
of SFD is found in monthly presentations and an intranet site to all employees within Sysco. This
has helped to keep the employees informed and reduce the amount of negativity found in this
A vision of an organization includes what an organization wants to accomplish in a long
term period (Byham, 2010). For instance, the management of an organization needs to possess an
understanding of where the company will be in the short, medium, and long terms. Management
must ensure that the short and medium term goals are in alignment with the vision of the organization. An example of an objective within a vision is to reduce the corporation?s operating
expense to a trending rate of 8.9% by the end of fiscal year 2013 (Sysco Corporation, n.d.).
A mission consists of the core competencies that provide value, and the critical success
factors (CSF) are the tools used to accomplish the mission of an organization (Byham, 2010).
The mission for the Sysco Corporation and SFD have been to deliver the customer quality
product at the agreed upon price and delivery time. Some examples of CSF are the tractors,
trailers, laptops, sales representatives, and the other employees needed to accomplish the mission
of SFD (Appendix 2). According to Shane (2009) a core competency provides the ability to
create value from an organization?s activities. In otherwords, a core competency is used to
accomplish the mission of an organization. In the case of SFD the core competency was the
ability to provide the restaurateur with the ability to ?one stop shop.?
A performance area is the most important outcome of a CFS (Byham, 2010). In
otherwords, a performance area provides no direction and is very simple to understand, because
the goals made up for each performance area provides the direction. For instance, examples of
performance areas for a sales representative within SFD are those of sales, gross profit, and
collections. An example of a goal for a sales representative is to have a 15.2% increase of sales
by December 31, 2010. A key performance indicator (KPI) is a tool that monitors and provides
feedback on the attainment of goals, processes, and performance areas (Bansal, 2009).
According to DDI (2008), there must be alignment between the organization?s values and
mission statement. In otherwords, the values of the employees within an organization must be in
alignment with the values of the organization (Appendix 2). An example of a value that SFD and
the Sysco Corporation pride themselves on is that of integrity. SFD has resigned major amounts
of business because of the unwillingness to negotiate ?under the table.? The behaviors of employees are important concerning the successful achievement of an
organization?s goals and objectives (Byham, 2010). The successful use of behaviors is important
when concerning achieving goals, employee retention, and useful for training; the right behaviors
must be present to attain any goal (Appendix 2). Two examples of behaviors that have been
found useful in sales are those of adaptability along with planning and organizing.
Leadership is an important technology throughout all levels of an organization so to make
sure that there is alignment between the vision, mission, and goals of an organization (Shane,
2009). For instance, poor leadership during this transformation gives the opportunity for
employees to misinterpret actions taken by senior management. An example of this happened
when the Sysco Corporation bought a call center in April 2010 and employees in the credit and
accounting departments became depressed because the consolidation was going forward.
The Technology Scorecard for SFD
Business process reengineering (BPR) occurs when the processes within an organization
are reengineered to reduce lost sales, deliver products on time, reduce inventory costs, increase
margins, and gain marketshare (Bansil, 2009). An example of BPR is found within the Sysco
Corporation and SFD in the process of transforming how they do business by reorganizing the
autonomous structure of the corporation and its subsidiaries by the implementation of ?Project
A technological scorecard needs to have general metrics reflecting the KPI that make up a
performance area (Hoque, Sambamurthy, & Zmud, 2006). In otherwords, an organization?s
performance needs some type of categorization. Examples of four general metrics important to
SFD are the external customer, human capital, financial, and operational performance (Appendix
1). Solution mapping occurs when solutions for improvement are from KPI, therefore,
creating value drivers, solution architecting, and conducting a gap analysis (Bansal, 2009). For
instance, by using solution mapping the internal and external customer can evaluate
opportunities to improve the KPI, not to mention, gap analysis results from using this technique.
An example solution mapping for SFD occurs when vendors provide incentives to purchase
truckloads of food so that SFD is efficient in controlling freight factors and other costs associated
with inbound freight. Another example is the opportunity SFD has when purchasing items locally
by using a ?just in time system (JIT).?
A technology scorecard needs to have the KPI, data elements, data source, and type of
calculation (Brown, 2009). This is important because of the importance of consistency and
defined measures. For instance, when measuring performance integrity is essential in the
calculation of the measurement and corresponding KPI. An example of this gap is found in
calculating employee retention and employee turnover.
Technology in business can shape the strategies used to attain goals so there is alignment
with an organization?s mission and vision (Hoque, Sambamurthy, & Zmud, 2006). The four
strategies are to automate, empower, control, and transform (Hoque, Sambamurthy, &
Zmud, 2006). For instance, in the operational portion of the technology scorecard there is a
strategy to ?automate? because of an emphasis on productivity, processes, and the cost of doing
business. Under the metric of customer there is a strategy to ?empower? by evaluating account
penetration, customer satisfaction, and service level. Furthermore, under the metric of financial
the KPI of operating pretax and net profit before tax are examples of the strategy to control. The
last strategy of ?transformation? is found by measurements concerning employee retention that is
found under the metric of human capital. Recommendations for the Implementation of ?Project 212?
The basic belief of BPR is to cut out the steps within a process that do not add value
(Bansal, 2009). In otherwords, to reduce the cost of goods sold or increase customer satisfaction
shared job functions need to become consolidated or replaced by automation. An example of this
is found with the implementation of ?Project 212,? use of enterprise resource planning (ERP)
software and consolidating different job functions within the entire corporation.
Enterprise Resource programs (ERP) is an integrated software programs designed to
handle a multitude of organizational functions that make up supply chain management like sales,
distribution, human resources, and accounting (Davenport, 2000). In otherwords, ERP systems
represent information systems infrastructure that helps organizations manage key resources like
products, vendors, customers, and finances. For instance, the ERP systems used in ?Project 212?
will streamline processes while integrating the different subsidiaries throughout Sysco?s network.
ERP systems integrate information across functional boundaries; they have significant
implications in terms of redesigning organizational structures, business processes, and employee
hierarchies (Harley, Wright, Hall, & Dery, 2006). For instance, because of the autonomous nature
of the Sysco Corporation many departments will become centralized, therefore, reducing the
redundancy of job functions that will flatten out the subsidiaries that make up Sysco. An example
of this is the use of one credit department for three to five operating companies.
The correlation between organizational and cultural change is the participants? beliefs,
interpretive schemata, paradigms, and behaviors (Elias, 2009). In otherwords, the perception of
the employees within the Sysco Corporation and SFD will influence how ?Project 212? is
received, not to mention, the effect this has on the culture of the organizations. An example of this perception is found by many employees? whom believe that there will be more jobs lost than
what the plan is for.
For change to be successful in the short, medium and long term change agents must
clarify employees? perceptions for a change initiative to be successful (Duck, 1993). For
instance, whenever there is organizational change management must ensure employee
understanding. The transformation team within Sysco has published a newsletter titled ?What?s
Cooking?? In this monthly newsletter have been progress reports, updates, and calendar of
For a change of any technology or corresponding structure management must ask for help
and encourage employee involvement while sharing the rationale for the change (Byham, 2010).
In otherwords, employee buy-in can happen with open, honest, and sincere communication. For
instance, in the case of SFD there needs to be a culture of trust before change can successfully
A socio technological system (STS) is a combination of people and technology (Berg
Olsen, Pedersen, & Hendricks, 2009). In otherwords, components of a STS can include software,
hardware, employees, customers, procedures, and physical surroundings. Alignment, open
communication, and strategic decision making are essential ingredients for any organization to
achieve the vision and mission that has been set forth. In addition to this the culture of an
organization must support change and encourage employee engagement and involvement in all
aspects of the business. The technology scorecard is a valuable tool when ensuring continuous
improvement. Appendix 1
Metric Data Elements Data Source Calculation 1. Account Penetration - Terr St YTD Account Penetration Account
Penetration YTD Account Penetration 2. Service Level YTD Potential Pieces
YTD Total Pieces Monthly - 13F
Monthly - 13F YTD Total Pieces / YTD Potential Pieces 3. Pieces per Error YTD Total Pieces
YTD Errors Monthly - 13F
Monthly - 13F YTD Total Pieces / YTD Errors 4. Customer Survey Customer Survey Score Customer survey Customer Survey Score for G&S customers 5. Sysco Brand Sales YTD Sales
YTD Sysco Brand Sales Monthly Brand
NSCABD-03 YTD Sysco Brand Sales / YTD Sales 6. Clean Invoices YTD Invoices
YTD Clean Invoices Monthly - 13F
Monthly - 13F YTD Clean Invoices / YTD Invoices Data Elements
YTD Payroll & Benefits
YTD Pieces Sold Data Source
Monthly - 24-29
Monthly - 13A Calculation 2. Climate Survey Climate Survey Score Climate survey Climate Survey Score 3. Projected M.A. Retention YTD Terminations
Average Headcount Monthly - 11C 1- (Annualized YTD Terminations / AvgHC 4. Projected Driver Retention YTD Terminations
Average Headcount Monthly - 11D 1- (Annualized YTD Terminations / AvgHC 5. Workers Compensation to Sales YTD Sales (Current Month)
YTD Work Comp Losses (Prior
Month) Safety Benchmark YTD Work Comp Loss (Prior Month) / YTD YTD Head Count
YTD Total Pices Monthly - 11P5
Monthly - 13F (YTD Total Pieces/100K)/YTD Total HC FINANCIAL
Metric Data Elements Data Source Calculation 1. Territory Street Sales Growth YTD Territory Street Sales Monthly - 13A YTD Terr St Sales - YTD Terr St Sales -1) / Y HUMAN CAPITAL
1. Payroll per Piece 6. Employess Per 100K Pieces YTD Payroll / YTD Pieces Reports YTD Territory Street Sales -1 Monthly - 13A 2. Projected Return on
Net Working Capital YTD OP PTX
Net Working Capital = Net Trade
AR + Inventory - Trade AP Monthly - 1
Monthly - 2
Monthly - 2 Annualized YTD OP PTX / Net WCap 3. Operating Expense to Sales YTD Sales
YTD OPEX Monthly - 1
Monthly - 1 YTD OPEX / YTD Sales YTD Sales
YTD OP PTX Monthly - 1
Monthly - 1 YTD OP PTX / YTD Sales YTD OP PTX
YTD OP PTX-1 Weekly
Weekly (YTD OP PTX - YTD OP PTX-1) / YTD PTX Pretax Return on Capital Qtrly MIB schedule Pretax Return on Capital Use PRV Quarter Data Elements
YTD Delivery Expense Data Source
Monthly - 1
Monthly - 1 Calculation 2. Warehouse Expense to Sales YTD Sales
YTD Warehouse Expense Monthly - 1
Monthly - 1 YTD Warehouse Expense / YTD Sales 3. Pieces per Trip YTD Pieces
YTD Trips Wkly Pg. 3
Wkly Pg. 3 YTD Total Pieces / YTD Trips 4. Inventory Shrink to Sales YTD Sales
YTD Inventory Shrink Monthly - 1
Monthly - 13B YTD Inventory Shrink / YTD Sales 5. Cost per Case YTD Cases Sold
YTD OPEX Monthly - 13A
Monthly - 1 YTD OPEX / YTD Cases Sold 6. CPMH ? Delivery YTD Cases ? Outbound
YTD Cases Total Hrs ? Delivery Monthly - 11P3
Monthly - 11P3 YTD Cases - Outbound /YTD Total Hrs - Delivery 7. CPMH ? Warehouse YTD Cases ? Outbound
YTD Cases Total Hrs ? Whse Monthly - 11P2
Monthly - 11P2 YTD Cases-Outbound /YTD Total Hrs - Whse 4. Operating Pretax Earnings to
Sales 5. Operating Pretax Earnings
Growth 6. Return on Capital
1. Delivery Expense to Sales YTD Delivery Expense / YTD Sales Appendix 2 Figure 1 Alignment Model (Sysco Corporation, n.d.) References
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