Query regarding AECS assignment

[Richa Singh (Ms)]

Ma'am,

for the 2nd question (Strategy Map), do we have to do the number work also for each of the decisions , as in , what is the exact monetary/financial impact in INR terms of the decision when we link the decision to financials or do we have to write qualitatively how does the financial get affected .

Also, the reading on Strategy Map said that " Non Profit and government organisations place their customer at the top, and not financial impact" ( page 521, Financial Impact, 3rd line). AECS seems to be one such organisations. This makes me think that we should be linking all the decisions to "Customer"impact  rather than " financial" impact ( as would be done for a normal corporate existing for profit maximization and having its goal defined in terms of the X% profit,revenue etc). We are asked to link all decisions to financials. Could you please throw some light on this. 

Thanks,

Richa 

[Richa Singh (Ms)]

Yes, this helps! 

Thanks a lot :)

Cheers,

Richa 

On Sun, Mar 10, 2013 at 12:49 AM, Chitra Singla <chi...@iimahd.ernet.in> wrote:

Dear Richa,

The minimum I want is qualitative explanation of linkages for each initiative. Even you are able to quantify it, then its a bonus for me and you will be rewarded in return.

If you look at productivity then it is a financial perspective. See, it is a non profit organization. But that does not mean that it does not have financial goals/perspective. Financial perspective and revenue and cost as its components. So if profitability is not the aim, cost efficiency can be the aim. Infact what we discussed in the class is, high volume low cost strategy for the firm. For that productivity was very important. A firm can have multiple objectives. If the mission was customer/society oriented, then firm had both customer/society oriented as well as financial goals (productivity) because only then the business model is sustainable. AECS is able to generate surplus; its iitiaives of Aurolab etc was to reduce cost. So the objective of eradicating blindness led to other objectives which are cost efficiencies and high productivity along with value for customers. All these are to achieve a bigger mission.

So, some initiatives are to achieve financial (cost/productivity/revenue related) goals; some will be to increase value for customers etc. You need to look at all the linkages. And identify where the linkages are strong and where are they weak.

I hope I have thrown enough light on the matter :)

-Chitra

--
Chitra Singla
Assistant Professor, Business Policy
Wing 9-B, Indian Institute of Management Ahmedabad
Vastrapur, Ahmedabad, India 380015
+91-79-6632-4882 (O)
+91-79-6632-4871 (Secy: Ms. Uma Baskaran)