AirAsia Balanced Scorecard Analysis

Financial Perspective

Objective Performance Measures Targets Initiatives

Improve cost structure
Increase asset utilisation
Expand revenue opportunities
Enhance customer value
Plane Lease Cost 5% per year Reduce cash expenses.
Eliminate defects.
Improve yields.
Manage capacity from existing assets.
Make incremental investments to eliminate bottlenecks.
Market value 50% per year New sources of revenue streams (new products, market
Seat Revenue 45% per year and partners)
Improve profitability of existing customers.

Customer Perspective

Objective Performance Measures Targets Initiatives

Customer Retention and Number of repeat 75% annual Implement Customer Relationship Management (CRM)
Increasing Market Share: customers. target. system.
Attract and retain more Number of new Increase 10% Provide sustainable promotions to attract new customers.
customers customers annually. Enhance the branding image of AirAsia by leveraging on
regional media and foreign partnership.
Customer satisfaction and Flights are on time. (On- On-time Implementation of customer loyalty program and quality
customer profitability time performance) arrival management.
Lowest prices. rating: #1 Monitor the changes in consumer trends to increase the
Customer ancillary income.
ranking:
#1
Internal Business Process
Objective
Operations management
processes:
Day-to-day processes by which
companies produce their
existing products and services
and deliver them to customers.
Customer Management
processes:
This process expands and
deepens relationships with
targeted customers.
Innovation processes:
Developing new products,
processes and services to
enable the company to
penetrate new markets and
customer segments.
Regulatory and social
processes:
These processes help
organization continually earn
the right to operate in the
respective countries.
Performance Measures
On-ground time
On-time departure
Reduction in customer
complaints and grievances
Growth of ancillary
products and services
To ensure the safety
standards of all aircrafts are
maintained.
To reduce carbon emissions
by purchasing aircraft
similar to easyJet, that has
proven to minimise its
carbon emission drastically.
Targets Initiatives
30 minutes Cycle-time optimisation.
90% Achieve HR process excellence.
Maintain a reliable IT infrastructure.
Achieve financial process excellence.
Develop Innovative Marketing
Communication Program.
On-time arrival To provide rapid responses to dissatisfied
rating: #1 customers and ensure the operations are
Customer ranking: handled effectively.
#1 Build strategic employee competencies.
Develop effective decision support system.
Develop effective CRM.
Growth rate of ancillary Drive organizational performance.
products and service Propose and deliver transformational
should increase 20% applications.
annually. Develop Financial Information for
improved decision making.
Develop Marketing Business
Intelligence
Zero aircraft accidents. Ensure Compliance with regulatory
Creating clean requirements.
development mechanism Accelerate new product development ideas.
projects, with the Implement good environmental policies.
potential of selling
emission rights in the
market.
Learning and Growth

Objective Performance Targets Initiatives

Measures
Human Capital: Strategic job Year 1: 65% Ground crew training
The availability of skills, talent readiness Year 3: 85% Develop strategic and functional finance, marketing,
and know-how required to Year 5: 100% human resource and information technology competence.
support the strategy
Organisation Capital: Strategic brand 100% within the Communications Program
The ability of the organisation to awareness next 5 years. Employee stock ownership.
mobilise and sustain the process Percentage of 40% within the Building the learning culture.
of change required to execute this ground crew next 5 years. Continue to promote the customer focused culture.
strategy. stockholders Foster creative thinking and innovative solutions.
Information Capital: Availability of 100% within the Crew scheduling system rollout.
The availability of information information next 5 years. Expand capabilities with technology
systems, networks and system. Use technology to improve financial information delivery.
infrastructure required to support Enhance IT tools for marketing and IT functions.
the strategy.