Flex Fitness is a 10,000-square-foot health and fitness studio located just outside of Amsterdam. It was established in 2012. Adam Vonn, the owner of the studio, has prior experience in the fitness industry. He is well-versed in the operational aspects of a gym and is personally involved with the fitness classes and activities being conducted in the studio. The area has a young demographic structure, consisting mostly of married working couples and families with young kids. The classes and activities offered at the studio include personal training and group fitness classes. Additionally, there is a nutrition counselling facility and a juice bar. Flex also offers complimentary childcare to its members. The studio uses the latest fitness equipment to increase the efficiency of its personal trainers. It employs only qualified fitness instructors.

To lure in more customers, Flex offers discounts on couple’s memberships and offers customized corporate packages. Since its opening, Flex has been growing at a steady rate and now has an impressive member base of approximately 1,000 members. In the last few years, the annual increase in membership fees has been more than the annual inflation rate. Currently, the annual membership fee per member is £600. Fitness and health awareness has become a global phenomenon, which has created a huge business opportunity for fitness clubs. People are willing to pay a premium for access to quality equipment and trainers. Though there are several fitness chains, both big and small, there is still an undersupply in the fitness market. Encouraged by the success of his first fitness studio, Adam opened a new fitness studio just outside Utrecht. The new studio had the same layout and fee structure as the first one. This area already has a couple of small fitness clubs that have been in business for a few years. The performance of the Utrechtclub has been less than satisfactory. The number of members is increasing at a disappointing pace. Flex is contemplating the introduction of the balanced scorecard approach to identify the key processes and performance parameters that need to be improved.

Required

1. Identify a balanced scorecard item that can help Flex measure its performance from a customer’s perspective.

2. Identify the balanced scorecard items that can help Flex measure its performance from the perspective of the organization’s learning and growth.

3. Assess what factor would result in only a few customer leads converting to actual memberships.

4. What measures does the balanced scorecard approach consider?

5. Determine what factor could be used as a performance measure for Flex’s personal trainers.

6. Determine how the balanced scorecard approach affects the use of performance measures for the companies in the same industry.

7. Identify which performance measure for the nutritional counselling service and juice bar could be used.

8. Identify a balanced scorecard item that can help Flex measure its performance from the perspective of its internal business processes.