Molded Dimensions was founded in 1956 as a custom molder of cast polyurethane, Pentathane®, and molded rubber goods. The business cut its teeth in the early days of our development and growth modeling our business management procedures based on the Balanced Scorecard Approach to Business Management. This approach was originated by Drs. Robert Kaplan and David Norton as a performance measurement framework that added non-financial performance measures to the traditional financial performance measures utilized by businesses.
The Balanced Scorecard Management System was a way to:
- Clarify and translate visions and strategy
- Communicate and link strategy and measures
- Plan, set targets, and align strategic initiatives
- Enhance strategic feedback and learning
This methodology was designed to be a closed loop system.
The basis of the program focuses on 4 key perspectives:
- Business Process
- Learning and Growth
Financial: requires the identification of a few relevant high-level financial measures.
Examples: cash flow, sales growth, operating income, return on equity, EBTIA.
Customer: requires the identification of measures that monitor customer satisfaction.
Examples: sales growth, on time delivery, ranking by important customers, awards, surveys.
Internal business processes: requires the identification of measures that monitor whether day-to-day activities are supporting the organization’s goals.
Examples: cycle time, unit cost, yield, new product introductions, quality, 1st pass yield.
Learning and growth: requires the identification of measures that monitor organization and employee development.
Examples: turnover, safety, annual training hours, quality, efficiencies.
While the financial results of an organization are critical to the long term health and viability of the business, they are strictly rear view mirror measures. It is the blocking and tackling in the trenches of the business that produces the financial wherewithal to grow and prosper as an organization.
The key strategies around employee growth and learning, efficient and reliable systems, and serving the customer to create a value proposition ring true in today’s business environment. These core principles support Molded Dimensions’ strategy to create a place where great people choose to work. The concept is really quite simple. When you take care of your stakeholders, the business will prosper and positive financial results will flow from the business.