Johansen's New Scorecard System: The Summit

Abstract

Johansen's, a large high-end department store, has just completed its first year under a new scorecard system for evaluation of manager performance. The manager of Store 51 has traditionally been one of the company's top-performing managers from a financial standpoint, but his overall performance rating has declined due to performance along nonfinancial dimensions. Using a role-playing exercise, the managers at the performance summit must discuss his performance in the context of a new performance evaluation system, measurement issues around the nonfinancial metrics, and retention concerns. An alternative version of this case, (UVA-C-2371) takes a more traditional case method pedagogical approach to the same material. Excerpt UVA-C-2349 Rev. Dec. 13, 2017 Johansen's New Scorecard System: The Summit Background Johansen's, a large high-end department store, first opened its doors in New York City in 1950. Founded on the principle of superior customer service, Johansen's quickly found success and expanded its stores across the country. Johansen's built its reputation and brand on putting the customer first and offering an unparalleled level of customer service. This core value was integral to maintaining its position as the premier high-end retailer for decades. As of 2014, Johansen's had 121 stores across 32 states. Due to its growth over the years, Johansen's was divided into five regions: Northeast, Southeast, Midwest, Southwest, and Northwest (Exhibit 1). Each region had a regional manager who oversaw all the store managers in that region. Generally, Johansen's promoted from within, and it was not uncommon for an associate at one store to be promoted to manager of another. At the store manager level, it was more typical for a promotion to regional manager to occur within the same region, but there were instances in which a store manager from one region was promoted to regional manager of another region. . . .