14.09 Measure Maps

TMD Goal Inc. produces and sells hockey equipment, often custom made for online orders. The company has the following performance metrics on its balanced scorecard: days from ordered to delivered, number of shipping errors, customer retention rate, and market share. A measure map illustrates that the days from ordered to delivered and the number of shipping errors are both expected to directly affect the customer retention rate, which affects market share. Additional internal analysis finds that: - Every shipping error over 2 shipping errors per month reduces the customer retention rate by 1.5%. - On average, each day above 2 days from ordered to delivered yields a reduction in the customer retention rate of 1%. - Each day before two days from order to delivery yields an increase in the customer retention rate of 1%, on average. - TMD Goal Inc.'s current customer retention rate is 80%. - The company estimates that for every 1% increase or decrease in the customer retention rate, market share changes 0.5 in the same direction. - TMD Goal Inc.'s current market share is 21.4%. Ignoring any other factors, if the company has 4 shipping errors this month and an average of 2.5 days from ordered to delivered, determine. a. The new customer retention rate. Round your answer to one decimal place. x% b. The new market share that TMD Goal Inc. expects to have. Round your answer to two decimal places. % Feedback rheck My Work The measure map also shows which metrics are leading indicators and which measures are lagging indicators of performance. Doing so, a strategy map shows how each strategic objective contributes to the overall mission or strategy of the company