Futura Industries Company’s Learning and Growth

Introduction

The learning and growth perspective is part of the balanced scorecard that is used by companies to adhere to operational standards required by the ISO quality certification bodies. The learning and growth perspective covers the methods, tools, culture, and people required to facilitate a company’s internal processes and strategies (Niven, 2005). It focuses on the intangible assets of the company especially the internal skills and the employee capabilities. The employees are critical since they are the ones who facilitate the internal processes that add value to the company.

This approach focuses on three main areas of an organization that are the human capital, information capital, and the organization’s capital. Human capitals are the people who form up the organization and carry out the day-to-day operations within the company. The information capital is the systems and technology factor s that affect the organization. Lastly, the organization’s capital is composed of the climate within the organization and the status of the working environment. The perspective’s main objectives are to examine how people, technology, and the climate within the organizations merge to facilitate the strategies formulated by the company. The standard of measurement for their quality is customer satisfaction and the financial status of the company.

At Futura Industries, the company’s success has been achieved due to learning, innovation, and growth dimension (Andra & Susan, 2003). The company’s president, Susan Johnson emphasized the use of this approach due to various reasons. First, the company needed to build a workforce that was respectable and able to grow with the foundation that was set by the company. Furthermore, the workforce was supposed to earn the trust of the other stakeholders. The organization’s capital is composed of the climate within the organization and the status of the working environment. The perspective’s main objectives are to examine how people, technology, and the climate within the organizations merge to facilitate the strategies formulated by the company. The standard of measurement for their quality is customer satisfaction and the financial status of the company.

The president further required the workforce to abide by the company’s mission of “Extraordinary Value through Extrusions”. This means that every person within the company was required to put in enough effort to contribute to the company’s efforts towards success. The president of the corporation chose the HBC approach because of its abilities to align the strategies of the firm to Futura’s objectives related to growth and expansion. The president also chose this method since it could help provide the company with the required type of leadership that would enhance the company’s quest for ISO certification. She required leadership with a one-page tool to gather data that could be used to plan the future of the business (Andra & Susan, 2003). The leadership was also required to implement the company’s strategies and ensure the implementation of the company’s metrics.

Analysis of Futura

Futura’s first concern is the well being of the employees. The company accesses the happiness of the employees using various methods. The first method of measurement of the happiness and motivation of the employees is conducted during the employee’s month of birth (the month of birth of the specific employee to be questioned). The company through the human resource department accesses the employee’s well being by seeking information related to the working climate, communication channels, and achievements (Andra & Susan, 2003). These factors are measured on a scale of 1 to 4.

The company also conducts surveys on various issues within the company that affect the workplace. These surveys are conducted to ensure a conducive workplace environment. The company seeks answers from the employees on the changes they require for them to have the ideal environment. By having the required environment, the company will be considered a better employer. Most of the questions asked to relate to medical benefits required by the employees, flextime options, payments for volunteer activities, and membership to sports teams (Andra & Susan, 2003). Other factors considered include favors by the company such as access to loans and savings options.

To gauge the progress that the company has made in terms of leadership, the company conducts surveys to find out the weaknesses or unfavorable policies that should be rectified at the management level. This survey highlights issues that improve the management’s courtesy and respect for the employees, productivity, and efficiency (Andra & Susan, 2003). The questions are determined by a consultant who visits the customers before the exercise to find out matters that were most vital to their relationship with the company. The president then conducts the monthly meetings based on the questions.

Moreover, the company invented an Excel tool to measure the accuracy of costing information. The tool analyzes customers with their related operating expenses. The tool also analyzes gross margins generated from individual activities. This move is done to measure the progress of the company financially and to evaluate the performance of the company, especially about specific customers.

Conclusion

The above measures by the company highlight the full dimensions of the learning and growth perspective. As indicated earlier, the learning and growth perspective measures are supposed to help a company adhere to the required operational standards (Niven n.d). As seen in the case study, the company’s success is attributable to the BSC approach used. This is enough proof that the measures employed by the company are compliant and feasible. It is vital to conclude that the company has done well by concentrating most of the measures in the employee satisfaction area. Many scholars and renowned people such as Pope John Paul II emphasized the need to recognize the contribution of man if success is to be achieved. The Pope emphasized that while most people stressed the importance of land and capital as the decisive factors in production, it is the knowledge of man that is fundamental for the two to work (Niven 2005).

Evaluation

Futura’s approach to using the learning and growth approach is suitable for the company and it may not pose any problems in the long- run. This is because the approach focuses on the main areas of the business such as customer satisfaction, the working environment, employee motivation, and the mode of management. These are the most significant areas in any business therefore; analysis of these areas may help the company to formulate measures that will ensure that the company continues to gain. The implementation has also been done properly. The measures are aimed at the three main areas required by the approach i.e. the employees (human capital), the management (organizational capital), and the Excel tools in the finance department (information capital). Furthermore, to gauge the effectiveness of one department, the answers are sought from people who are outside the department but interact with the department. For instance, to improve the efficiency of the employees generally, the company asks the customers about the improvements needed.

References

Andra, G. & Susan, J. (2003). The balanced scorecard at Futura industries: Strategic Finance. ProQuest Central, 85(1), 36.

Niven, P. (n.d). Learning and Growth Persepctive. EPM Review. Web.

Niven, P. (2005). Balanced Scorecard Diagnostics: Maintaining Maximum Performance. New York, NY: Wiley.