Tap

Class 14: TWA PartsV.G. Narayanan,.  Transworl  Transworld d Auto Parts Parts had to implement implement its its new strategy awlessly awlessly to sur!i!e sur!i!e the auto industry uphea!al. The new C"# as$ed her leadership team to %ra&t strategy maps and 'alan%ed s%ore%ards to help ea%h di!ision implement its strategies.  The preparation preparation (uestions (uestions &or the %ase are: are: 1. )es%ri'e the 'usiness strategy o& ea%h di!ision * and what a%tions are needed a. +uury i. -nno!ati!e, (uality parts 1. Get good people * engineers, designers, . /e!erse engineering 0. -n!est in so&tware  CA)2CA3 4. Prototyping . Partner with %ustomers 5. 6pgrade pro%esses 7. 6pgrade ma%hinery '. "%onomy - .89 produ%t, +ow %ost2pri%e, Asia 1.  -T pro%esses pro%esses 2. Coordination with %ustomers 3. /edesign produ%ts to redu%e %osts 4. /edu%e raw material %osts  Train employees employees in pro%esses pro%esses 5.  Train 6. Go! reg 7. Capa%ity utili;ation 8. Communi%ate !alue prop 9. , a su'sidiary o& an Ameri%an %ompany &or produ%ing i!ersi?@e, is a manu&a%turer @ auto e(uipment originating mo'ile =#"3> who $nows great ?nan%ial di%ulties %aused 'y a slowdown in automoti!e industry. + TAPBs C"#, "llen right, em'ar$s %hanges radi%als in the %ompany espe%ially in terms o& restru%turing and rede?nition o& the strategy will 'e %ru%ial &or the sur!i!al o& TAP. A&ter se!eral dis%ussions it was de%ided that  TAP, whi%h produ%es two types o& produ%t lines, ele%troni% and interior, will now &o%us more on two o& these di!isions are the e%onomi%s di!ision and luury di!ision. -n addition, TAP &o%uses now on the Asian mar$et in parti%ular &or the di!ision and the e%onomy "uropean mar$et &or luury di!ision. These two di!isions must re!iew their respe%ti!e strategies, their !alue proposition in relation to their %ustomers and their positioning in the automoti!e industry. y answering the ?!e (uestions &ollowing we will try to 'etter understand the wor$ in its two di!isionDs moyen analysis strategi% map and 'alan%ed s%ore%ard to esta'lish re%ommendations in per&orman%e management #rgani;ational TAP. 1. -denti&y and des%ri'e 'usiness strategies o& the di!isions Ee%onomyE and EluuryE o& TAP. Fou must des%ri'e how ea%h di!ision adds !alue A" %ustomers and diHerentiates &rom its %ompetitors. What is the moti!ation o& TAP to implement a plan and a strategy alan%ed %ore%ardI 8ow dash'oard @(uili'r@serait 'ene?%ial &or so%i@t@et its di!isionsI  The literature on organi;ational per&orman%e measures o&ten touted the 'ene?ts o& C and T". 3%3ann and #rlando =1JJK> esta'lished a list o& reasons leading %reating a new system per&orman%e measures. Applied to the %ase o& TAP, it appears that these %ir%umstan%es are the adoption o& new strategies &or the di!isions EluuryE and Ee%onomyE the adoption o& a new stru%ture =redu%tion o& 4 di!isions  di!isions> and ?nally that the %ompany is &a%ing a strong slowdown o& years the automoti!e industry. TAP moti!ation &or the implementation o& a strategi% plan and a T" is eplained 'y the words o& "llen right =C"# o& TAP>. The latter says these tools would help to des%ri'e the o'Le%ti!es to 'e a%hie!ed &or the %ompany to reali;e its strategy. A !isual map showing the strategy and lin$s %ause and eHe%t would 'e o& great help %lari&y the goals o& the %ompany. T" , 3eanwhile, is interesting the &a%t that it is E'alan%edE. -ndeed, this term indi%ates that the  T" in%ludes 'oth ?nan%ial measures 'ut also non?nan%ial measures whi%h

would pre!ent the %ompany &rom &o%using too mu%h on shortterm !ision or long term.  The use o& indi%ators and per&orman%e dri!ers &or "llen right is also a 'ene?%ial sour%e &or the %ompany and its di!isions, &or understanding that per&orman%e indi%ators %an not 'e impro!ed a&ter the strategy has 'een implemented &or some time, the presidents o& the two di!isions %an &o%us )e!elopment o& Per&orman%e )ri!ers that they ha!e immediate eHe%ts. -n &a%t, itBs rea%hing the Eindu%er targetsE that leaders %an a%hie!e the Eindi%ati!e targetsE. #n the other hand, the use o& T" also $nown in term 'ene?ts transparen%y o& strategy in all le!els o& the enterprise whi%h ena'les people at the 'ottom o& the hierar%hy understand what the strategy o& the %ompany and there&ore to wor$ at their le!el to it =and Appli%ation implementation o& the alan%ed %ore%ard p. M>.