Balanced Scorecard

Saatchi & Saatchi: Balanced Scorecard Case Study

Saatchi & Saatchi was once one of the world's most respected advertising agencies, but its fortunes were floundering in the mid-1990s. It had crafted a quirky brand image for itself that had been diluted due to its over-expansion and a lack of a coherent vision for its various component agencies. "Throughout the 1970s and 80s we experienced rapid growth through acquisitions. We were essentially competitors only connected through common ownership" (Greenhalgh 2004:2).

The company established specific financial benchmarks for itself to meet.

These included growing its revenue base better than the market average, converting 30% of its incremental revenue to operating profit, and doubling its earnings per share (Greenhalgh 2004:3). This was designed to give the company a sense of focus, purpose and clarity in reshaping its new future over a three-year period. Clear goals provided shareholders with a sense that...
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