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Smith Brothers Security Blinds Illustrative Case

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Smith Brothers Security Blinds Illustrative Case
Fictional case for Seminar 3in-class exercises (Introduction to performance measurement)
Case objective: To give students the opportunity to (i) differentiate between performance dimensions and performance measures, (ii) to devise performance measures, and (iii) to evaluate performance measures using a comprehensive framework.
Case: Smith Brothers Security Blinds is a sales and manufacturing organisation, with locally made security blinds as the flagship product. The organisation has two main divisions: sales and manufacturing.
Tom Jones, the financial controller at Smith Brothers Security Blinds, has just completed the half yearly reports. Sales for the current period are 30% less than last year and the profit outlook for the year is a ROI of 8%; significantly below the ROI target set by the CEO of 15%. Tom recently implemented a Performance Measurement System in the Manufacturing division, and on all indicators the division is operating as per predefined targets. The lower than expected performance seems to be emanating from the sales division.
The sales division has two main departments: Lead generation and the Sales team. They also invest in adverting and other marketing activities.
Lead generation: A team of 10 employees (lead generators) and 1 supervisor work out of a call centre, where they phone householders and try to book face to face appointments for the sales team. The phone numbers are purchased from a third party supplier, who provides the name, address and phone number of prospective customers. Each appointment booked is called a ‘lead’, and is recorded in the company’s Customer Relations Management (CRM) system. Key details recorded are the householder’s name and address, which sometimes differs from that provided, as well as confirmation that (a) the householder is the home owner (b) that the...

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