Business

Saatchi  Saatchi is a very creative organization, the company in the mid of 1990 the company faced bankruptcy, even though the company was growing through acquisitions in the past two decades. Before introducing the balanced scorecard Saatchi  Saatchi went through a complete strategy reformulation and structural changes when new personnels were appointed in the organization. With time the new CEO realized that the company needed a strategic management performance tool, hence the implementation of balanced scorecard in Saatchi  Saatchi.

Before setting the goals the company did a financial health check of Saatchi  Saatchi, to find out that which agencies of the company were making money and which were not. The goals that were set by the company in terms of financial perspective are as follows-
The need for an strategic management performance tool
Set three year financial goals

Growing revenue
To convert 30 percent of incremental revenue to operating profit
Doubling earning per share of the company

Analysis
When setting the goals Saatchi  Saatchi decided to put its agencies (business units) into 3 categories. These categories are as follows-

Lead lead agencies are those agencies which are the largest agencies, these agencies employ more than 150 employees. UK, USA and China have been termed as the lead agencies. The strategies that were set for these agencies is that they are expected to grow and the large part of the investment of the company would be allocated to these agencies.

Drive a drive agency has 50 to 150 employees and the strategies that were created for this agency were that they asked to maintain or slightly increase their revenue base and were also asked to increase their profit margins as well.  

Prosper a great deal of business units fall under this category. A prosper agency has less than 50 employees and these agencies have limited potential to grow or become gigantic units. The strategy that was created for this category was that the prosper agency is not expected to grow but were asked to generate high margins for the company.

Customer Perspective Strategies
Clients customers are very important to a company like Saatchi  Saatchi. The company believes that the financial success of the company solely depends on client and that is the reason why the company pays close attention to its customer. The company had conducted an analysis and they found out that 20 to30 percent of Saatchi  Saatchis client base made up 70 to 80 percent of the companys revenue. The strategies that were implemented by the company for their customers are as follows-
Focusing on clients that created large revenue earnings
Providing clients with excellent services
Need to pay close attention to the clients and their needs to that they become PICs (i.e. Permanent Infatuated Clients)

The agencies were asked to generate and implement BFIs (big fabulous ideas) not ideas but quality
Focusing on quality, so that  it can transform brands, businesses and the reputation of their customers in their industries

Conclusion
Yes the financial perspective did make sense for each given agencies of Saatchi  Saatchi. Why, because as we know that financial perspective can be defined as an increase in the profit margin of the company and it is important for the company to find out that which agency of the company is able to grow and which is not. And will these agencies be able to achieve the targets that have been set for them and the company. By following the strategies that had been implemented by the company, Saatchi  Saatchi was able to achieve its Wall Street goals and it was all due balanced scorecard (BSC).

Saatchi  Saatchi was purchased by Publicis Groupe SA, for somewhere around 2.5 billion in the year 2000. The acquisition of the company did not change any of the balanced scorecard (BSC) results, instead the company found out that it the company was worth five times of it market value and it also found out that with the contribution of balanced scorecard strategy Saatchi  Saatchi was able to become a success and it helped the company to reach its set goals.

I believe that both the prongs of balanced scorecard (financial and customer perspective) were in a complete synthesis, because one without the other cannot work and if both the perspectives were in a conflict then the balanced scorecard would not have been a success and Saatchi  Saatchi would not have been able to achieve its targeted gaols.

Evaluation
I believe that the financial perspective of the Saatchi  Saatchi meshed perfectly with that of the customer perspectives of Saatchi  Saatchi. Because the company found out that 20 to 30 percent of the customer base made 70 to 80 percent of the companys revenues altogether and therefore it most necessary that the financial and customer perspective of the balanced scorecard mesh together to achieve success.