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Mobil USM&R(A): Linking the Balanced Scorecard
Transcript of Mobil USM&R(A): Linking the Balanced Scorecard
18,9% increase in revenue
2,8% return-on-capital-employed, 1995
19,1% average annual return to shareholders exceed index S&P500 more than 2% points Exploration & Producing (the "upstream" business)
Marketing & Refining (the "downstream" business)
Mining & Minerals
Early 1990's flat demand for gasoline and other petroleum
limited capital to invest in a highly capital-intense business "...You didn't need an MBA to know we were in trouble" Climate Survey 1993 internal reporting requirements
top-down policies McCool initiated major studies of business processes and organizational effectivness To make the most of its existing assets and focus more intensively on customers Reorganization of USM&R, 1994 17 Natural Business Units
14 Service Companies sales and distribution units integrated refining, sales and distribution units specialized products and proces units Reasons for Reorganization "get staff costs under control"
"learn to focus on the customer"
"get everyone in the organization thinking" newly developed strategy on customer segmentation
- Road Warriors (16%)
- True Blues (16%)
- Generation F3 (27%)
- Homebodies (21%)
- Price Shoppers (20%) Goals of Reorganization USM&R decided to focus on 59% of gasoline buyers (first three segments)
upgrade all service stations
redesign and reorient Mobil's C-stores
USM&R Balanced Scorecard Results USM&R's income per barrel = $1.02
Global operating return from refining, marketing and transportation operation = 10.1% per dollar McCool concluded:
"In 3 to 4 years, we have come... to a company that ranks #1 in its peer group, and generates hundereds of millions of dollars of positive cash flow" Thank you for your attention!!!