6. What other actions did VWB take to support strategy implementation?

The other action that VWB can take to support strategy implementation is by introducing the
dashboard. Dashboard can be use to set the initiatives, task, metrics, and objectives for each
group within it. The management can use it to measure and monitor the relevant information and
activities timely by using the performance metric, and then fix potential problems when it come
out. The keys to an effective dashboard initiative include proper definition of target audiences
and design of metrics, simplicity and manageability, and sustained leadership through a
dashboard "champion". Each strategic initiative will have champion and coordinator that monitor
the project team in the accomplishment of main milestones. The champion will lead the project
team in making the decision on how to accomplish the main milestones. Besides that, dashboard
also can minimize redundancies, and set clear vision of the company. The information that is set
out on the dashboard is cross functional which every department can know their job in detail.
Dashboard also refines and communicates the strategy to the supplier and dealer. Company
launches a program to the supplier and dealer in order to increase their production and service
efficiency respectively. The program that had been launched is supplier day, supply award, and
dealer academy. Schmall will monitor the display list for the status of top 400 programs (2007)
which had been assigned to 400 executives committee to the dealer in order to help them to
increase their service efficiency. Company also upgrades the quality of vehicles ship to each
dealer. The executive also had been assign to understand any problems being experience by the
dealer, coach the dealer and help the dealer install better management systems. Regarding this
matter, the management needs to report to the executives company about the result from the
program. Schmall will monitor the program via big four display list on the wall near his office.
Company also uses hand and soft data to track the performance result.
Besides that, to make the employee more understand about the strategy, the company was
launched multiple communication programs including specific event, discussions, training at
regular meetings and internal competitions among workforce. From the contest, the winner was
come out with a mascot name Giga which could symbolize and communicate the new strategy.
Furthermore, the company also provides board game which require workforce to answer the
question that related to the strategy by advanced their tokens. Besides, there is an interactive role
play game based on customized Learning Map, visual representation of VWBs history, current
competitive environment, and strategy that was introduced to the employee. They will play the
game in a group team. In addition, the company was put big electronic display that post the
information about the strategy map, near the production line and also put the information of
strategy map in the companys paper, electronic paper and intranet portal. Moreover, the
company also runs workshops to teach the employee about the strategy map.
Other than that, compensation is also important to increase the employees motivation in
achieving the goal. Regarding that matter, the company gives the compensation to their workers
who perform very well in their job. There are two types of compensation which are financial and
non-financial. For the financial rewards, the non-executive and the executive will get bonus
according to their job accomplishment and the bonus plan. On the other hand, for non-financial
reward, the company will reward individuals and groups who have significant contributions to
improving the company BSC metrics. The company also announced the winner for the best
project for each category in the annual meeting of 1500 participants to motivate the employee.

7. How can Schmall and his team use the scorecard to deal with the challenges faced by the
company in January 2009? What should Schmall do in January 2009?
The global financial crisis started at the end of 2008. Regarding this matter, VWB is seeing a
depression and reduced growth rate in the Brazilian economy. Schmall and his team should focus
to the parts of the BSC (balance scorecard) in order to handle the uncertainty for the future
period. They should work more closely with organization dealers and develop with them new
techniques and service to attract new customers. For example, the dealer can give free
maintenance for purchase of new cars and extra discount if the customers purchase car more than
one. Besides that, Schmall and his team should be more focus on achieving the maximum
production capacities by closely monitoring dealers weekly sales, also increase the process
efficiency by minimizing the work hour per car. Furthermore, investing on innovative techniques
to reduce the car cost and sustain its reliability can be good time to invest during recession.
In addition, the company should produce effective strategy. Activity-based costing (ABC) can be
used as an effective strategy budget. There are three linkages between the ABC and BSC, which
are operational linkage, customer profitability linkage, and budgeting linkage. In the operational
linkage, the activity-based costing can identify the driver for indirect cost and support cost.
When the management used the activity base costing, they can trace expenses accurately to the
processes of product development, marketing and sales, manufacturing, distribution, and service
delivery. This cost driver will able to allocate the cost, quality, and time accurately. The second
linkage occurs when the ABC model used to measure the profitability of individual customer. It
is included customer satisfaction and customer loyalness. In relation with the budgeting, ABC
model is used for activity-based budgeting to combining information on the forecasted volume
and mix products and produce efficiencies to produce a bottom-up budget. In the bottom-up
budget, the non-executive also involve in producing the budget.
Lastly, Schmall must conducting meeting frequently with the all manager for each divisional to
increase the performance and discuss about the new strategy and the progression. When they seat
together, the decision will be more accurate.