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Question 1 (Marks: 30) Read the following extract from a CIO magazine article and then answer the questions that follow: Philips Electronics has implemented a scorecard system to align company views, to focus employees on how they fit into the big picture, and to educate employees on what drives the business. Philips management uses the scorecard as a guide at quarterly business reviews worldwide to promote organisational learning and continuous improvement. Philips created its balanced scorecard with the belief that understanding what drives present performance is the basis to determine future results. Philips uses the scorecard as a basis for employees to understand management's strategic policies and vision for the future. Philips created four critical success factors [CSFs) to align indicators that measure markets, operations, and laboratories with business success (3). At the business unit level, six key indicators are also included under each CSF. These CSFs and key indicators are: Competence (knowledge, technology, leadership, and teamwork) - Indicators: Organisational development and IT support Processes (drivers for performance] - Indicator: Operational excellence Customers (value propositions) - Indicators: Customer delight and employee satisfaction Financial (value, growth, and productivity) - Indicator: Profitable revenue growth Philips uses these CSFs to link short-term actions with long-term strategy so that employees can link their actions to stated company goals. Philips has also seen that the scorecard promotes the sharing of best practices and creates a worldwide communication system where employees can share success practices, product fixes, project knowledge, interests, and pitfalls. This communication prevents employees from repeating fellow employees' mistakes, saving time and money. Philips has realised significant benefits due to implementing a worldwide scorecard system, Employees embrace and use the scorecard to improve results. Management uses the scorecard to communicate strategy and align employees with strategy. The scorecard is also used at all levels of the organisation. Philips has implemented a balanced scorecard and succeeded in focusing the company on a diverse set of business measures. Source: hatas:/sem.nest.edu/sem-articlew/article/philips electronics balanced scorecard The independent ingit ze of Tencation [My Lid 2031 20. 21: 22 7007 Note: In your answers, you will be awarded more marks for integrating the theory and points from the new article than if you discuss them separately. Q.1.1 List the steps in the balanced scorecard methodology Philips would have (10) followed. Q.1.2 Apply Porter's Value chain to Philips by describing their Support Activities. (10) Q.1.3 Recommend the use of HR systems for management and employee development (10) and performance at Philips