MANPOWER AUSTRALIA: USING STRATEGY MAPS AND THE BALANCED SCORECARD EFFECTIVELY.

Manpower Australia

Is one of the spoke of manpower global network of 4300 offices in 74 countries. Operating in Australia and New Zealand as human resource solution provider. Manpower operates under the brand name of:
Manpower. Right

management consultants. Manpower executives. Elan. Manpower city.

Organizational Chart
Managing Director

Recruitment and Staffing Solution [R&SS]

Major Client Services [MCS]

Corporate Services

MD Office and Executive Officers

Strategic Services

Sizes of market Sector in Employment Services Industry in Australia( 19992003)

1999
Executive search General permanent jobs General Temporary jobs Outplacement consultancy Specialist agencies A$ 579.5 2429.1 2273.2 497.5 2038.7

2003
A$ 1191.2 2883.9 4727.1 877.7 2858.9

Challenges Identified

Flat growth for 2 year against Manpower Global standard of year-on-year growth. Little successful new product development. Underperformance against Manpower global standard measure of gross profit/total salary cost. Competitor discounting. Culture did not support innovation and rapid commercialization.

3 Strategic Themes To Tackle Challenges

Focus on clients and candidates. Expansion of service offerings. Supply capabilities to grow communities and sector.

Strategies To Tackle Challenges

Grow market share in growth industries and sectors. Contribute to employment growth in communities. Meet industry benchmarks. Reposition brand as the authority on work Proactively manage risk.

What Is Balanced Scorecard?

Defined as A strategic planning and management system used to align business activities to the vision statement of an organization It is a performance measurement framework, developed by Dr. Robert Kalpan and David Norton. Under BSC, strategic non financial performance measures to financial metrics. It provides a clear prescription as to what companies should measure in order to 'balance' the financial perspective. Approach takes a holistic view of an organization. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results.

Brief About Balanced Scorecard

BSC has generally 4 perspectives:

Financial.
Internal

business processes. Learning and growth. Customer.

The implementation of BSC results in:

Monitored

progress. Motivated/educated employees. Greater customer satisfaction.

Reasons For Choosing Balanced Scorecard

Manpowers vision and strategy needed to be translated into action. Requirement of key changes in measurement system. Need for measurement and management framework. BSC uses measurement to inform employees drivers of current and future success. Easy to channelize energy, knowledge and abilities for achievement of long term goals.

Perspective: Financial
THEME 1. Growth OBJECTIVES Provide return on capital Improve profitability MEASURES YTD return on sales Sales revenue Operating unit profit

YTD gross profit margin

Gross profit growth YoY. 2. Productivity Improve productivity Cost containment Debtors over 29 days DSO days SG&A growth YoY SG&A as % of gross profit YTD gross profit/total

Perspective: Customer
THEME 1. Candidate delivery OBJECTIVES Speed of response MEASURES Job fill rate contract Job fill rate permanent Job fill rate temporary Job vacancy days contract Job vacancy days permanent Job vacancy days temporary

Perspective: Internal Business Processes

THEME 1. Increase customer value 2. Achieve operational excellence 3. Safety OBJECTIVES Increase retail client base as a % of gross profit Lower the cost base of business Safety MEASURES Client retention-lapsed

Pay bill error rate Lost time inquiry frequency rate rolling average.

Perspective: Learning And Growth THEME OBJECTIVES MEASURES

1. Climate for action Retain key staff Staff retention

Problems & Challenges in Implementation of BSC

Low preference for usage by middle and senior level management Quality of information used in BSC was not appropriate. Old and slow processes Lack of standardization in branches and between teams Inefficient candidate handling processes

Further Challenges

Low prices in the market Need of developing brands Stiff Competition Growth of niche agencies High level of service expectation Speedy service

Road ahead

Change management Change in Bureaucratic structure Service to sales culture