Question
Whitehouse Gardens Incorporated is a chain of home supply gardening product stores. Last year, Whitehouse adopted the balanced scorecard (BSC) for evaluation of store and
Whitehouse Gardens Incorporated is a chain of home supply gardening product stores. Last year, Whitehouse adopted the balanced scorecard (BSC) for evaluation of store and store manager performance. The BSC has helped Whitehouse to identify the critical success factors for sales and profitability. In particular, it has helped Whitehouse better understand its competitive environment and the drivers of success in that environment. On the advice of its chief financial officer, Whitehouses board has requested that the company president conduct a study to validate the BSC. The objective of the study is to make sure that the scorecard measures being used are, in fact, the key measures associated with success. The following data have been obtained for the most recent quarters results for each of the companys 30 stores, listed in order of when the store was opened (the most recent is store 30). There are five district managers, each of whom is responsible for six of the stores. In this study, a store managers success is measured by increase in sales of each store for the current quarter over the same quarter last year. The data below include the percentage change in sales and four of the measures included in the customer perspective of the companys BSC. The scorecard measures include:
- A survey of customers: this measure is taken from a survey form that is handed to customers on a random basis as they leave the store. The customers rate the stores performance on a scale of 0 to 100, where 100 is the highest score.
- Manager review: each district manager evaluates each store once a quarter, also using a scale from 0 to 100, where 100 is the highest score.
- Average wait time: the district managers have a staff that on a random basis measures the wait time in the checkout line for customers in each store. The figures shown here are the average wait times, in seconds, for the samples taken in the most recent quarter.
- Average number of store employees who have had one or more of the companys in-house training courses in the past quarter, as a proportion of total employees at the store.
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