Haco Industries Ltd. is a 37 year old international company involved with stationery products, shavers, personal care and household hygiene. Haco Industries serves over 180 million people across the entire Eastern Africa region. It was established in 1974 and later diversified its focus into personal and household care in the mid 1990s. Haco Industries is one leader in the FMCG (Fast Moving Consumer Goods) market in East Africa. It has partnered with PLI Alberto-Culver USA, E.T.Browne Co. USA, Société BIC France and Jeyes UK in manufacturing and distribution.
The balanced scoreboard at Haco is approached to make sure the company grows, prospers and survives. (It is a tool used in Strategic Planning and Management in order to make business activities in line with company vision and strategy, boost internal and external communication and check on performance versus strategic goals). It gives a balanced view of organizational performance to managers, as it incorporates traditional financial measures with non-material/financial ones. This is the case with managers at Haco Industries and thus, the balanced score board approach is used by Haco as an overall tool to track its growth and survival in the households market.
The balanced scorecard helps the company satisfy its mission by putting together the company’s strategy and tactical measures. The dimensions of learning, innovation and growth, while put to work, make sure that the other three components of its overall dimension also succeed, namely: – customer service, financial and internal operations.
The three objectives of improving the company’s financial position include the following:-
Improvement on customer cost information.
This analyses the standard price per item per customer so that Haco Industries can compare the profitability between customers. This is used in weekly review meetings to communicate the financial state of the entire company and also compare customers based on the profitability, which in turn drives behavior. This falls perfectly within the company’s mission and overall strategy in that the growth of the company has to be closely monitored to in order to arrive at and achieve extraordinary value.
Measures in internal perspectives
Haco follows three major goals when it comes to measuring and achieving its internal perspectives. These goals include the following:
Planning and delivering of flawless new products;
Introduction of new and re-innovated products into the market; and
Reduce costs continually.
These have been specifically designed in line with the mission. In order for the company to grow and be valuable and maintain its learning, innovation and growth, the company has to maintain a vibrant work force by giving regular feedback on performance.