Volkswagen do Brasil: Driving Strategy with the Balanced Scorecard

Posted: 18 Feb 2012

See all articles by Robert S. Kaplan

Robert S. Kaplan

Harvard Business School

Ricardo Reisen de Pinho

Harvard University - Business School (HBS)

Date Written: December 20, 2010

Abstract

A new management team at VW do Brazil develops and deploys a strategy map and Balanced Scorecard to accomplish a turnaround and cultural change after eight consecutive years of financial losses and market share declines. The team uses the strategy map to align financial and project resources to the strategy, and to motivate its more than 20,000 employees by communicating the strategy in multiple ways and installing reward and recognition programs. It also establishes new programs to align the extensive networks of suppliers and dealers to the strategy. But after a sharp decline in sales triggered by the global financial crisis of 2008, the executive team faces a dilemma: should cut back production levels and funding for strategic initiatives until sales recover, or should it continue to invest for the future?

Learning Objective: To teach how the Balanced Scorecard is used as part of a strategic management system.

Suggested Citation

Kaplan, Robert S. and de Pinho, Ricardo Reisen, Volkswagen do Brasil: Driving Strategy with the Balanced Scorecard (December 20, 2010). Harvard Business School Accounting & Management Unit Case No. 111-049, Available at SSRN: https://ssrn.com/abstract=2007147

Robert S. Kaplan (Contact Author)

Harvard Business School ( email )

Soldiers Field
Accounting & Control
Boston, MA 02163
United States
617-495-6150 (Phone)
617-496-7363 (Fax)

Ricardo Reisen De Pinho

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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