Bmo Case Report
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BMO Case Report
Diagnose Strategic Issues and Key Problems
The strategic issue that BMO has is that it has to figure out an effective way to maximize the success of the corporation effectively. This data has been gathered by the head executives at BMO. They have come to this conclusion by analyzing their departments and seeing what needs to be done in order to make their business more profitable and successful. If BMO does not fix this issue there are many long term ramifications. If the employees of the company are not working to their full potential then the company as a whole is not maximizing their profits. This could lead to a loss of money and power by the company, which could eventually lead to a loss of employee jobs. If this issue is not addressed and altered than both employees and the firm would be significantly affected.
Define Strategic Issues and Key Problems
The organization got to this point because it does not have an effective way to motivate employees and make them each understand that their work is a direct correlation to the success of the corporation. If there is not an accurate measurement of performance level for employees to base themselves off of than they have no way of knowing if they are working to their full potential. They have just begun to implement the Balanced Scorecard approach. “The value of this is that each individual can see more clearly how his or her performance ties into the overall performance of the firm.” [1]
Generate Strategic Alternatives
One strategic alternative I would suggest is instead of using a Balanced Scorecard they could use a Productivity Measure. This is a direct measure of what employees accomplish and the results they produce that benefit the organization. This helps employees to reach their goals because they are consistently aware of what they have previously accomplished to use as a judgment for what they should accomplish in the future. The second strategic alternative I would recommend is for BMO to use the Management by Objectives method. “MBO is a philosophy of management first proposed by Peter Drucker in 1954 that has employees establish objectives (such as production costs, sales per product, quality standards, and profits) through consultation with their superiors and then uses these objectives as a basis for evaluation.” [2] The third alternative I would recommend is for BMO to continue with using the Balanced Scorecard method but only to add some other steps to this method in order to make