Case Study Of Rasil: Driving Strategy With The Balance Scorecard

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Register to read the introduction… Before 2007, if a tension existed between volume and quality, the culture tilted towards maintaining production volumes. We wanted to instill a new culture for employees to solve problems as they arose, eliminate defects, and reduce health and safety incidents even if these actions cost money and decreased short-run production output.


Carsteen Isensee, 50, became VWB’s CFO in 2007. He had worked in planning and finance throughout his VW career, including joint venture projects in China and as plant controller in
Slovakia and South Africa. Isensee commented on VWB’s situation when he arrived:
It was a period of cost cutting and workforce reduction, low corporate morale and the constant threat of having its unprofitable operations shut down by the German head office. We had to reeducate the VWB management team to spend money wisely so that we could afford to enlarge markets, improve processes and innovate on new products.


Schmall included Senn and Isensee within an 11 person Executive Committee that would lead
VWB’s transformation (see Exhibit 3).

Using a Strategy Map and Balanced Scorecard for Cultural and Strategic
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The second Customer objective, “Improve Company Image,” signaled the importance of rebranding VWB as an innovative producer of high-quality vehicles. The Process objectives stressed developing a more service-oriented culture among dealers, reducing costs while improving the quality and delivery performance of suppliers, and, especially, improving the efficiency, cost, and flexibility of the workforce and production system. The foundational Potential and Growth Challenge objectives emphasized achieving a high-performance culture, developing an attractive and innovative mix of products and a long-term commitment to sustainability. Collectively, the executive team expected that achieving the objectives in the four challenge areas would enable the company to regain its #1 market position in Brazil.
Schmall commented on the reasons for developing the strategy map:


The map describes the strategy in a consistent and clear manner. The cause and

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