Building a Strategic Balance scorecard

Case Study: Saatchi & Saatchi Worldwide

KEY POINTS

• Saatchi & Saatchi one of the worlds leading creative organisation
• A full service integrated communication agency 
• services range from communication and marketing strategy, advertising scripts and production for all media channels, to consumer research and forecasting.
• Saatchi & Saatchi represents numerous household names throughout the world including Toyota/Lexus, Procter & Gamble, General Mills/Pillsbury, Visa International.
• The story began in 1970, when two brothers, Charles and Maurice
  Saatchi, founded the eponymous agency in London, UK.
• along with many other organizations, its phenomenal growth
  of the 70s and 80s was brought up short by recession in the early 1990s.
• By 1995 the agency was on the brink of bankruptcy
  
• Then company went on to apply Balanced Score Card.

Approach to the problem

• With the vision and financial/growth goals in place, the next step was
  To make the strategy happen
• The senior team refocused and re-prioritized their investment plans for the business units
• Financial health check was done to determine which agencies were making us money, which weren’t, which had potential and which didn’t
• Three agency categories were developed, lead, drive, and prosper, and each category had different strategic charges.

KEY SUGESSTIONS

• when we are formulating a stratergy, it should be according to the problem on hand.
• The forecast should be accurate and one should have a fair idea about the market changes and flactuations.
• The structure of the organisation should be a combinations of both centralised and decentralised form
• Top management should focus mainly on the market fluctuations, rather than working on day to day transactions
• Freeing up of resources to make the scorecard happen.