Highlights
Content Requirements
Assuming the CEO is satisfied with your reports are now required to formulate a Sustainability Balanced Scorecard (SBSC) to explicitly translate Veolia’ strategy into a set of financial and non-financial performance measures, covering a range of perspectives. You are asked to present and discuss a suitable SBSC, using a business report format. In completing your business report, please address the following questions:
1. Consider the mission, vision and five-year objectives of the case company in relation to sustainability. Identify three available approaches to the development of a sustainability strategy map and sustainable Balanced Scorecard. Choose and apply one of the three approaches for Veolia and explain your choice with reference to the case company’s specific situation.
2. Briefly outline what a “strategy map” is and then develop a sustainability strategy map for Veolia. Please put a specific focus on its sustainability objectives and motivate your objectives’ formulation concerning Veolia. The strategy map should be constructed in line with your sustainability consideration in Q1.
3. Based on your chosen approach (Q1) and the sustainability strategy map (Q2), please provide a Sustainable Balanced Scorecard to= Veolia. Please show your classification of the strategic objectives (Q2) into the perspectives of your SBSC and justify your classification with specific reference to the case company’s sustainability objectives.
4. For each sustainability objective in SBSC (Q3), identify one or more suitable/reasonable lead and lag indicators through which you would advise to measure the fulfilment of the objective. Justify your choice of indicators. That is, how do you know that the chosen indicators can drive, capture and measure the targeted objectives?
5. Identify and explain the eventual impacts of the indicators you have chosen (Q4) with reference to the sustainability objectives of your suggested SBSC onto the organisation’s decision making. Within the report you should provide at least the following figures: a sustainability strategy map and a SBSC for Veolia.
Suggestions and Expectations from the Course Coordinator
Assignment Three has a focus on a strategic tool of management accounting: a Sustainable Balanced Scorecard (SBSC). To successfully complete this assignment, your readings should start with, but not be limited to, the Component Three materials (Topics 7, 8, and 9) of the course. You also need to search for materials that are outside of prescribed texts.
Considering the case company’s mission, vision and five-year objectives as a start point. Does the case company have its mission and vision? If no, you will need to formulate them incorporating the core value of sustainability. If yes, do the case company’s vision and mission reflect sustainability as a core value? You may decide to adopt the current company vision and mission or reformulate them.
The five-year objectives should be measurable. A maximum of five objectives is recommended. Each of these objectives should have sustainability flavour.
Based on your consideration of the mission, vision and five-year objectives, you now can plan your sustainability strategy map and Sustainable Balanced Scorecard for Veolia.
Your recommendations about the organisation’s sustainability strategy map and Sustainable Balanced Scorecard are expected to be directed by one approach that you have learnt from Topic 9. To justify your approach, you are suggested to outline the three approaches and emphasise (with an articulated and detailed discussion) the one you recommended for the organisation.
Please remember that the discussion is not just theoretical as you must stress the reasons why you think your approach is the most suitable for Veolia.
Applying more than one approach is not recommended as you need to take into account your word limit and your arguments in the business report should be coherent with the approach you have chosen.
The approach that you recommend should be explicitly applied while addressing the questions of the assignment.
Particular emphasis on the sustainability objectives and their measurement (indicators) are expected to be discussed in the following questions: 3, 4 and 5. There is not one best answer as you are required to apply your critical thinking to the case study, therefore you should direct your attention to ensure coherence to Veolia’s real-world situation in addressing those assignment points and motivate your choices.
Areas for you to explore should include sustainability issues/priorities/focuses that are of strategic importance to Veolia, as well as the sustainable achievements that Veolia is proud of. These are expected to be considered in your sustainability strategy map and SBSC from the organisation’s management perspective (not from a stakeholders’, shareholders’ or other external parties’ perspective).
Note that your SBSC should be consistent with your sustainability strategy map. That is, the perspectives and objectives formulated in your sustainability strategy map should be the same in your SBSC. This is because that your SBSC is developed based on your sustainability strategy map. Objectives should be measurable, so are the indicators.
In terms of Question 5, it is suggested that you consider the impacts of your choice of indicators for the sustainability objectives in the organisation’s decision making processes. You are expected to consider any possible positive and negative outcomes from the selection of your indicators (e.g. changes on the production processes, costing system, organisational culture and climate, social perception of the organisation, behaviour issues, etc.). In this discussion, you can follow the causal relationships that you were required to explicitly elaborate on in the sustainability strategy map of the
organisation, which (of course) would continue to inform your SBSC (independently from your chosen development approach).
It should be pointed out that real-world issues are often complex and there is no definite right or wrong decisions. The most important skill that you are expected to develop from this assignment is your reasoning skills and application skills. That is, you are expected to justify your arguments coherently with the approach you have chosen and the prompts of your case study.
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