Signature Assignment: Strategic Plan: Implementation Plan, Strategic Controls, and Contingency Plan Analysis

BALANCE SCORECARD AND COMMUNICATION PLAN 0

Strategic Plan Part III: Balance Scorecard and Communication Plan

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BUS/475

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Balance Scorecard and Communication Plan

Assumptions, Risk and Change Management Plan

General motors need to have a plan to manage risks and changes associated with the newly established division. Risk management focuses on identifying and controlling events or areas that may cause unwanted changes in the new division. The unwanted changes will not only affect the new division, but it will also affect the mother company. However, in the case of any changed, either motivated by the company or unwanted changes, the company need a plan to manage the changes. Change management is a vital part of a successful new division. Change management plan focuses on setting up strategies that will enable the company to manage the changes reducing the effects it may have to the company’s operations and the employees.

The assumed risks and changes that may face the new division at General Motors include various critical challenges. For instance, the Chinese market is posing various opportunities and risks to the automotive industry. The other risks are getting enough human resource, legal challenges in some countries and consumer behaviors. The company also needs a sustainable business model that will enable then gain competitive market advantage. According to Wells (2013) risk in a company may originate from high capital costs associated with production and lumpy investment in models and plants.

The change management risk includes three stages that result to a certain change management plan. The stages are considered in conjunction with the magnitude and nature of the change. The company needs to understand the details of the changes and the associated risks. This stage includes change identification, particulars of the change, and change approach. The second phase includes implementation of change. It comprises of strategies implementation and releasing the strategy. Change is then reviewed in the appraisal of changes strategy in the third stage. The output of the three stages includes scheduling of the activities, action plan, communication plan, training plan, resistance to change plan, employee changes readiness plan, release plan, and review strategy.

Like change management plan, risk management plan also includes the identification of the risk details. While the company can identify the overall risk they may face, they should identify the risk that may happen at each stage of the project life cycle in the new division. The plan provides an evaluation of the identified risk and provides the mitigation actions. The risk management plan include the nature of the risk and their consequences, the probability of the risk occurring, the impact of the risk, priority of the risk, and mitigation steps to reduce or eliminate the risk. The Risk and Change Management Plan for General Motors will be used in assisting in monitoring the hedging strategies, derivative positions, and hedging program.

Corporate Social Responsibility

General Motors considers its corporate and social responsibility with significant seriousness. The new division will also contribute to the company’s CSR mission individually adding to the long history of CSR of the company. The company has established a greenhouse gas reduction plan aimed at reducing the greenhouse gas emissions. The company has actively participated and collaborated on environmental and social issues ("Corporate Social Responsibility Profile for General Motors Company," 2017). The company has the power to influence the natural environment and the cultural expectation and norms. In efforts to conserve the environment, the company has started a project that will turn plastic water bottles into car parts. Non-biodegradable products such as plastic bottles pose significant threats to the environment, and the company is looking for ways to reduce their impacts ("General Motors Corporate Responsibility," 2017).

Balanced Score Card and its impact on stakeholders

The new division at General Motors will use the Balance Scorecard process in monitoring the progress being made in achieving the strategic objectives. Zizlavsky (2014) considers balanced scorecard as an innovative measure for a company to measure and manage their progress. Therefore the balanced scorecard is used to define and track the goals of the new division and the possibilities of achieving those goals. The balanced scorecard will include set targets for each strategic initiative for the next three years and methods to measure these targets.

Each employee in the new division will receive a copy of the balanced scorecard since each employee plays a critical role in achieving the goals of the new division. The gesture will engage the employees in the overall performance of the division. Engaging employees boost their productivity as well as job satisfaction. The decision to provide each employee with a copy of the balanced scorecard improves communication and keep them informed. Engaged and well-informed employees perform better and contribute to the overall performance of the company.

General Motors Electric Cars Balanced Scorecard

The table below is the balanced scorecard for the General Motors new division. The scorecard is for three years, and it is subjected to any changes that may be deemed necessary. A yearly strategic plan meeting will be held to discuss and realign the company’s objectives and goals.

Summary of Strategic Objectives

Each strategic plan has three strategic objectives covering over three years. It is important to understand why each objective qualifies as an objective, what is to be measured and the metric for each measurement. It is also important to understand how the company will know that they have achieved their goals my setting a target.

Shareholder Value or Financial Perspective: Being a new division, it is not expected that it will become profitable immediately. The profit target for year two is 6 million and 3 billion by the third year. Increasing line profit or net bottom income and the metric used net income is used to measure profit. The new division is expected to contribute to the parent company starting the second year with 1.2% and 6% per year respectively. The division gains 27% of market share by the third year.

Customer Value Perspective: This has three objectives, that is, maintaining 2.7% customer revenue, maintain 97% highly satisfied customers, and increase customers by 12% yearly. This will be measured by customer turnover, customer survey, and customer growth respectively. The metrics are lost customer ratio, survey responses, and net gain in customer respectively

Internal Operations Perspective include three objectives that improve the efficiency of its operation, improve the capability of the production, and improve the process sales to lower production costs. Measure and metric include waste product, update facilities, percent of the wasted product, and some old facilities in use and reduce sales staff and number of levels of sales staff respectively.

Learning and Growth (Employee) Perspective include maintain 93% of highly satisfied employees, reduction of employee turnover to 1.8%, and improve new products innovation to 14 by year three. The measures include staff survey, turnover ratio, and new products to market. The metrics include survey results, turnover ratio, and new products to market.

The Communication Plan

The communication plan offers a definition of the programs that will be used to communicate within the new division and wit the communities. Communication plan offers a systematic two-way communication and information sharing. The communication plan for the new division at General Motors will include nine steps such as:

• Objectives identification

• Target audiences selection

• Designing the key messages

• Selecting communication methods

• Planning for two-way communication

• Establishing time frame

• Drafting a budget

• Implementing the plan

• Monitor the results

References

Corporate Social Responsibility Profile for General Motors Company. (2017). Socialfunds.com. Retrieved 31 May 2017, from http://www.socialfunds.com/csr/profile.cgi/756.html

General Motors Corporate Responsibility Newsletter - April 2017. (2017). 3blmedia.com. Retrieved 31 May 2017, from http://3blmedia.com/News/General-Motors-Corporate-Responsibility-Newsletter-April-2017

Wells, P. (2013). Sustainable business models and the automotive industry: A commentary. IIMB Management Review, 25(4), 228-239. http://dx.doi.org/10.1016/j.iimb.2013.07.001

Zizlavsky, O. (2014). The Balanced Scorecard: Innovative Performance Measurement and Management Control System. Journal Of Technology Management & Innovation, 9(3), 210-222. http://dx.doi.org/10.4067/s0718-27242014000300016