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please see the attached file.

About Pitney Bowes
Pitney is the world's biggest maker of postal meters and mailing equipment and provider of mailing and delivery software and services to companies, is ranked 394th in the 2006 Fortune 500, with $5.5 billion in revenue and $526.6 million in profits.
(Wikipedia)

It has got following divisions:

? Global Mail stream Solutions,
? Global Business Services,
? Capital Services.

Mission of Pitney Bowes

"The Pitney Bowes brand promise - Engineering the flow of communication? - describes what we do for our customers every day."
(Source: Corporate website)

The Strategic objectives of Pitney Bowes can be compared with different measurement areas for Balance Scorecard as follows:

a. Revenue, Profit margins, growth in operating cash flows can be tied with financial goals of measurement of Balance Scorecard.
b. Customer satisfaction, Market Share and Customer loyalty can be tied with the customer goals of measurement of the Balanced Scorecard.
c. Direct Distribution Performance (Supply chain Performance) and Cost of Manufacturing can be tied with internal business processes (Operations) goals of measurement of the Balance Scorecard.
d. Employee satisfaction, retention and development can be tied with Learning and Growth goals of measurement of the Balance Scorecard. Also business goals In IT-Industry can be visualized by applying internal customer relationship management as described by Frank L. Eichorn "IntCRM provides a quantitative and visual evaluation of the key criteria that affect an organizations propensity for managing internal customer relationships and delivering systems that meet business needs ( Pg 2, who Owns the Data (2004)) Defining for Quadrant as it relates to performance measure

In order to build right culture, firms should focus on several key attributes to ensure the success of the Firms:
? Developing leadership skills
? Encouraging personal accountability
? Maintaining a higher standard of ethics and integrity
? Building a workforce with diverse backgrounds, skills and potential
? Commitment to Customers
? Unbeatable employee experience

Firm need to integrate the following inputs from different levels:

Finance Goals
Management will require information on inventory costs, on raw material supplies, monitoring of the productivity of the employees. Financial records such as journal, ledger will provide all the required information.
An accounting report will be helpful on the productivity of the Operations; it will contain cost of the employees and the output of them. There will be comparison with the previous year. This report can be made monthly. Moreover financial reports such as cash flow statement, ratio analysis, working capital situation, income statement, balance sheet will be required. . He will require basic information on the price of the raw material, wages and salaries paid to the staff and other expense to determine the cost of various activities with in the organisation. Thus financial statement will provide all the basic information to the cost department. A management accounting report will be on Cost Analysis for each product. It will be done monthly. Also he will be keen on knowing the growth in sales, profit, operating cash flows through above reports.

Customer Goals
One of the tools is the use of a Customer Relationship Management (CRM) database to track historical sales. Instead of manually recording and analyzing the sales and marketing data it is much more convenient through use of a new information system. The organization can record valuable historical data about sales orders, product information, and customer sales information, including prices paid, costs, margins, and discounts given to make important decisions. It will help in understanding the customer and fulfilling the objectives.
Using CRM Companies would be wise to consider the different sub-groups of customers they have and how they differ in terms of types of purchase, cost of purchases, servicing needs, communication methods, total purchase transaction time, post-purchase needs, complaint issues, and others. Even more important to identify may be the commonalities between these same customers, and the characteristics that seem to be present for most or all of them.
This type of analytical dissection of a company's existing customer base will allow for customer profiling. Profiling is key to eventually understanding everything from how to best service the customer to delineating the best methods for marketing, selling, and retaining these customers (and more just like them). The rule of the thumb is to never assume anything about your customers.
Measuring Quality and Customer Satisfaction
Most emerging approaches to the measurement of overall productivity and management results agree on the importance of customer capital, as expressed in sales, satisfaction and reputation. The higher the innovative and service component, the more the customer becomes part of the performance equation. Customer feedback helps continuously to improve product and performance, with the peripheral benefit of inspiring employees to increase efforts toward better results.
As for customer satisfaction, it is not only the satisfaction of the end user but also the stakeholders / partners and also the employee satisfaction (Miller, 2005). Some tools and techniques that can be used to measure customer satisfaction are:
? Primary Surveys - measuring customer satisfaction on factors like innovative solution, business attitude, pricing etc.
? Primary Surveys - to understand the relationship customers have developed with the firm
? Conducting personal interviews with stakeholders to partners (customers) to understand the relationship with the firm and the extent to which they are satisfied with the relationship
? Personal Interaction with Channel Partners to understand their satisfaction levels with the firm.
?Number of repeat orders from customers
? Understand satisfaction levels of employees (Internal customers) through Voice of Workforce Surveys measuring morale of the employees, commitment etc.
? Understanding satisfaction levels of employees by looking at the attrition percentage on a monthly basis
Moreover She will require the information on the product design costs, personnel costs related to the design and the budget. The report will be on the cost benefit analyses of new products. It will contain information on the sales from new product, market share, advertisement, brand development, promotion and other marketing costs incurred and the comparison. A Management accounting report called Sales analysis report can be prepared. It will contain key customer information, sales to each customer, customer outstanding. Segment report: Customer wise and Region wise and the comparison. This report can be made monthly.

Internal Business Processes (Operations)
Supply Chain Performance: Timely delivery, Product delivered as per customer specifications from internal databases in the organization and customer feedback to operations. The company should also adopt Six Sigma to manage and identify process variations that may cause defects in its products. Six Sigma is a methodology by which business processes can be improved through understanding and managing customer requirements, to allow management to adjust business processes in order to meet these requirements. Six Sigma is a:
* A Quality Philosophy. It's a philosophy that talks about attainable short-term goals while striving for long term objective.
* A Tool. Six sigma is a statistical and problem solving tool.
* A Management Strategy or a Business Process. That allows companies to design, operate, control and monitor everyday processes.
* A Concept or an Idea. Which has to be first understood and then merged into the organization's culture need more to discuss

Operating costs and Quality Mangement: Cost of manufacturing as compared to other similar players in the industry. We will utilize benchmarking as QM tool to reduce the cost and improve the quality. Benchmarking is a process, which evaluate various aspects of their processes in relation to best practice, usually within their own sector. Benchmarking is simply about making comparisons with other organizations and then learning the lessons that those comparisons throw up".
Source: The European Benchmarking Code of Conduct

It will encompass the following:
? Regularly comparing aspects of performance (functions or processes) with best practitioners;
? Identifying gaps in performance;
? Seeking fresh approaches to bring about improvements in performance;
? Following through with implementing improvements; and
? Following up by monitoring progress and reviewing the benefits.
The 'Gap Analysis'

When examining the best practices of others and drawing comparisons, an organization will often perform what is called a "gap analysis." This is a way to identify the performance or operational differences between your process and that of your benchmarking partners, and to understand why the differences exist. One way to identify these gaps is through a technique called "activity modeling," a useful method for understanding how a business process really works by first describing how things are ("as-is" modeling), and then by how you want them to be ("to-be" modeling). Key Actions in Benchmarking for Best Practices

Measures to be taken by the division on the basis of benchmarking:
? A product mix that is responsive to rapidly changing market needs
? Introduction of new products based on latest R&D,
? Use of process innovation and quality improvement process to reduce cost of operations and consequently price of product

Learning and Development
Employee Satisfaction, retention and development:
A 360- degree feedback is becoming an important tool of due to its powerful impact on the organization. This method involves receiving feedback about personnel from subordinates, peers and supervisors. Thus it is one of the most comprehensive appraisal systems.

It will help the company in many ways. It is one of the ways of knowing about the employees in exhaustive manner which will help in improving the behaviour and performance of the employees by focusing on clear communication and sharing the goals with them. For example the Managing Individual Effectiveness (MIE) system at Bell core is used for self-development. "It gets feedback from peers, managers, subordinates, and the ratees themselves. According to a Bell core representative, the results are better working relations; better communications; more information on management performance and style; increased effectiveness and productivity of individuals and the organization as a whole; knowledge of training needs; a better grasp of organizational priorities; and greater employee input in designing self-development plans." (Tool pack)
Thus it can be win-win situation for both the organization and the employees leading to the improvement in performance of them.

Moreover it helps in development of effective teams as the members become more accountable to each other by transparent communication with each other. The information is not only useful for career development but for the personal development also. It also helps in reducing any kind of discrimination as it is broad based in nature. It leads to improvement in customer delight by taking appropriate action to raise the performance with the help of feedback.

One should also know the prerequisites of implementing this system sot that it can achieve the desired purpose. First it is to be taken as means rather than the end. Thus it should be considered as one of the tools of Performance management system and should be related to the objectives of the organization. Moreover it should be preceded by change management strategies to make the system acceptable to the employees. It may also lead to extra paper work and efforts of the human resource department. Morever culture based issues may arise with implementing these measures for the employees. This will require intense interaction among team members and this will bring forth cultural issues. These issues can be managed by creating awareness among all that the ths system is necessary for achieving desired results and surviving and growing in competitive market situation. This may be made part of training too. There can bias of rating also. Thus Behaviorally Anchored Rating Scale should be developed so that exact evaluation can be made. These will also prevent from Raters from falling in trap and becoming bias as discussed above. Here the organization prepares examples of behavior in form of expectation from role and behavior is observed against them( e.g. when faced with staff shortages , the Incharge examines the work and relocates staff to handle critical functions)

Thus a 360 Degree Performance System should gradually evolved involving subordinates, peers and customers(internal and external) should be involved so that it can reflect more comprehensive, objective Performance appraisal. The potential of person developed during period of appraisal so that more comprehensive Performance appraisal can be made.
Training is also important for employee retention and development. Training will be an important aid to managers for developing themselves as well as their subordinates. It is not a substitute for development on the job, which comes from doing, experiencing, observing, giving and receiving feedback and coaching. Research has shown that 80% of a person's development takes place on the job. However, training can contribute the vital 20% that makes the difference. Training can bring about an improvement in a person's:
Knowledge
Skills
Attitude
thereby raising his potential to perform better on the job.Thus how many training hrs are there for the employee can also be one of the metrics.

The specific measurable performance measures are described below:
Financial Goals
Revenue
Profit Margins
Operating cash flows
Customer Goals
Customer Satisfaction
Customer Relationship
Repeat Purchase
Market Share
Internal Business Processes
Supply Chain Performance
Operating Costs
Quality Management

Learning and Development
Employee Satisfaction
Employee Retention
Employee Development

Implementation Plan
Activity Duration Start Date End Date Owner
Identify Key Metrics
Financial Goals Finance
Customer Goals Marketing
Internal Processes Operations
Learning & Development Human Resource
Identify data sources for key metrics All Functions
Identify team to develop reports (dashboards) All Functions
Develop draft dashboards for key metrics for all dimensions All & Reports Team
Revise reports (dashboards) based on requirements of management Senior Management
Develop dashboards for all key metrics on a regular basis (monthly/quarterly/yearly) Reports Team

Identifying Deviations
Target Score (1) Actual Score (2) Deviation (2) - (1)
Customer Perspective
Customer Satisfaction 4.75 / 5.0 4 / 5.0 -.75
Customer Relationship 4.5/5.0 4.5/5.0 0
Market Share 60% 55% -5%
Financial Perspective
Revenue USD 6 Bn USD 5.74 Bn
(yahoo.com) - .260 Bn
Profit Margin 15% .92%
(yahoo.com) -14.08%
Market Capitalization 12 Bn 10.21Bn
(yahoo.com) -1.79 Bn
Internal Business Processes
Supply Chain Performance 4.9/5.0 4.95/5.0 .05
Operating Costs 70% 78.5%
(yahoo.com) -8.5%
Quality management 4.75 4.25 -.5
Learning and Development
Employee Satisfaction 4.5/5.0 4.0/5.0 -0.50
Employee Retention 4.0/5.0 4.25/5.0 0.25
Employee Development 4.25/5.0 4/5 -.25

Challenges of Balance Scorecard
Cost-Benefit analysis
Although the balanced scorecard appears to hold many advantages for businesses that use it there is a major problem with first implementing it. The cost of bringing in the balanced scorecard method is very expensive. Even a 3 day training course on the balanced scorecard from the Balanced Scorecard Institute can cost up to $1595 (balancedscorecard.org) It is very unlikely that there will be employees already within a business who are trained or have time to implement it. Perhaps this is why it is mainly large companies who use the balanced scorecard, (Horngren et al 1999). If the costs are to outweigh the benefits for a particular organization then it is unsuitable to proceed with implementing the balanced scorecard.
"Do not embark on a balanced scorecard initiative unless your organization has a high-ranking champion, has adequate funding, and is ready to meet the challenges of change" (Balancedscorecard.org). It is clear from the evidence that the Balanced Scorecard is just not suitable for all organisations.
All measures are not quantifiable
It could be argued that some of the things the balanced scorecard cannot be measured. Whilst commenting on the balanced scorecard Roest (1997) states "not all measures can be quantified". The Balanced Scorecard Institute are agreeing that many factors in business cannot be measured but they claim that metrics must be developed from a set of key criteria and business drivers and that these metrics can be measured. ***
CONCLUSION
As a performance measurement tool the balanced scorecard could be considered to be very successful. If it is implemented correctly and used within the correct organisation there can be many positives for a business. It has more benefits to larger organisations where profit can afford to slightly dip in the short term future and where the costs of implementing it will be less significant that if a small business where to implement it.

Again, for cost and management accounting the balanced scorecard can be an effective tool. A reason that means it is successful as a management accounting tool is because "if you can't measure it you can't manage it" (Microsoft.com). The balanced scorecard helps manage intangible assets that are usually difficult to measure but by measuring and managing all aspects of a company's performance it becomes possible for these tangible assets to be measured (Pearsoncmg.com). Overall the Balanced Scorecard appears that it can be a useful performance measurement tool and can be a valuable asset for cost and management accounting.

Other Refences:
? My past papers
? www.balancescorecard.biz
? Corporate Strategy by Ghamel
? Management Control System by Govindrajan
? References mentioned in the text
? Retrieved August 23, 2006
? http://www.teamtechnology.co.uk/balanced-scorecard-overview.html

? en.wikipedia.org/wiki/Six_Sigma
? www.sixsigmamk.com/
? www.sixsigmabenchmarking.com
? Wipro Appliying Thought (2006). Continuous Process Improvements. Wipro Technologies. Retrieve on January 20, 2006. From http://qualityconsulting.wipro.com/ continuousimprovement.php?gads=GoogleQI
? Business Process Management Training (2006). World Wide Webside. Retrieved on January 23, 2006. From www.bpminstitute.org/training/ analyzing-the-as-is-and-creating-the-to-be-process.html

? George, J. M. & Jones, G. R. (2005). Understanding and Managing Organizational Behavior. Upper Saddle River, NJ: Pearson Custom Publishing.
? http://findarticles.com/p/articles/mi_m3495/is_9_44/ai_56973709/pg_2

? http://www.toolpack.com/performance.html as retrieved on 14 Aug 2006 16:23:14 GMT.
? http://humanresources.about.com/od/360feedback/a/360feedback_2.htm as retrieved