Question 4 Strategic performance measurement and Balanced Score Card wwwwwww (23 marks) Janith Smith and Joe Adam, both highly skilled at woodworking, started a small furniture business in Nelson New Zealand in 2019. Because of the high quality and distinctive style of their furniture, the list of customers grew quickly. At present, the company has grown to become a nationally recognized manufacturer with annual sales of 200 million. Recently, the cost of wood they require has risen sharply and it has become difficult to maintain their profitable growth. A consultant has been called in to help them assess their strategy going forward. The assessment began with the consideration of the firm's mission and strategy. Owning a privately held business, Janith and Joe felt that their mission should reflect their personal value as well as the need to provide a successful business. Their personal value that they know shared among their employees: "To be the highest- rated brand in crafted furniture." The strategy they followed: To differentiate the firm based on innovation, style, quality, and customer service (with an emphasis on short time lead time, the time from receipt of an order to delivery of the customer's order)." They choose as the firm's tagline, "To delight with our product, and impress with our speed." The next step was to develop a Balanced Score Card (BSC). The financial goals were revenue growth, cost reduction, and increased return on investment (which would be achieved by the revenue growth and cost reduction). Similarly, goals were set for other perspectives of the BSC. It was decided to build a strategy map to ensure that the goals of all perspectives were consistent with the firm's mission and strategy,. Finally, target measures (both Lead and Lag) were suggested to determine how to achieve these goals. The suggested measures were as follows. Return on investment Percentage increase in sales, by product line Cost per unit, by product line Survey customer satisfaction Lead-time, the time between when the order is received and delivered Number of profitable new products or product feature Number of defects detected Inventory level, process speed Percentage of employees trained on the firm's strategy map Number of business risks discovered and analyzed Training hours in skill development Customer profitability by distribution channel and customer group