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AirAsia Balanced Scorecard Analysis

Financial Perspective
Objective Performance Measures Targets Initiatives
Improve cost structure

Increase asset utilisation
Plane Lease Cost 5% per year Reduce cash expenses.
Eliminate defects.
Improve yields.
Manage capacity from existing assets.
Make incremental investments to eliminate bottlenecks.
Expand revenue opportunities

Enhance customer value
Market value
Seat Revenue
50% per year
45% per year
New sources of revenue streams (new products, market
and partners)
Improve profitability of existing customers.

Customer Perspective
Objective Performance Measures Targets Initiatives
Customer Retention and
Increasing Market Share:
Attract and retain more
customers
Number of repeat
customers.
Number of new
customers
75% annual
target.
Increase 10%
annually.
Implement Customer Relationship Management (CRM)
system.
Provide sustainable promotions to attract new customers.
Enhance the branding image of AirAsia by leveraging on
regional media and foreign partnership.
Customer satisfaction and
customer profitability
Flights are on time. (On-
time performance)
Lowest prices.
On-time
arrival
rating: #1
Customer
ranking:
#1
Implementation of customer loyalty program and quality
management.
Monitor the changes in consumer trends to increase the
ancillary income.


Internal Business Process
Objective Performance Measures Targets Initiatives
Operations management
processes:
Day-to-day processes by which
companies produce their
existing products and services
and deliver them to customers.
On-ground time
On-time departure
30 minutes
90%
Cycle-time optimisation.
Achieve HR process excellence.
Maintain a reliable IT infrastructure.
Achieve financial process excellence.
Develop Innovative Marketing
Communication Program.
Customer Management
processes:
This process expands and
deepens relationships with
targeted customers.
Reduction in customer
complaints and grievances
On-time arrival
rating: #1
Customer ranking:
#1
To provide rapid responses to dissatisfied
customers and ensure the operations are
handled effectively.
Build strategic employee competencies.
Develop effective decision support system.
Develop effective CRM.
Innovation processes:
Developing new products,
processes and services to
enable the company to
penetrate new markets and
customer segments.
Growth of ancillary
products and services
Growth rate of ancillary
products and service
should increase 20%
annually.
Drive organizational performance.
Propose and deliver transformational
applications.
Develop Financial Information for
improved decision making.
Develop Marketing Business
Intelligence
Regulatory and social
processes:
These processes help
organization continually earn
the right to operate in the
respective countries.
To ensure the safety
standards of all aircrafts are
maintained.
To reduce carbon emissions
by purchasing aircraft
similar to easyJet, that has
proven to minimise its
carbon emission drastically.
Zero aircraft accidents.
Creating clean
development mechanism
projects, with the
potential of selling
emission rights in the
market.
Ensure Compliance with regulatory
requirements.
Accelerate new product development ideas.
Implement good environmental policies.


Learning and Growth
Objective Performance
Measures
Targets Initiatives
Human Capital:
The availability of skills, talent
and know-how required to
support the strategy
Strategic job
readiness
Year 1: 65%
Year 3: 85%
Year 5: 100%
Ground crew training
Develop strategic and functional finance, marketing,
human resource and information technology competence.
Organisation Capital:
The ability of the organisation to
mobilise and sustain the process
of change required to execute this
strategy.
Strategic brand
awareness
Percentage of
ground crew
stockholders
100% within the
next 5 years.
40% within the
next 5 years.
Communications Program
Employee stock ownership.
Building the learning culture.
Continue to promote the customer focused culture.
Foster creative thinking and innovative solutions.
Information Capital:
The availability of information
systems, networks and
infrastructure required to support
the strategy.
Availability of
information
system.
100% within the
next 5 years.
Crew scheduling system rollout.
Expand capabilities with technology
Use technology to improve financial information delivery.
Enhance IT tools for marketing and IT functions.