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Case Study
MANPOWER AUSTRALIA:
USING STRATEGY MAPS
AND BALANCED
SCORECARD EFFECTIVELY

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INTRODUCTION
In year 2004,Varian Nissen was MD for
Manpower Australia and Scott McLachlan
was CFO and director of corporate service.
Under the guidance of Varina Nissen,
performance of the company has improved
The budget target have been achieved.

Manpowers major competitors had also focused on

improving productivity and were often able to offer
clients better prices.
There were candidates shortages in certain segments
of the market, while customers were demanding total
solution for their human resource management needs.
An opportunity existed for growth through innovation ,
developing and marketing new products and services
to target customers.

A new strategy :Manpower was to become a leader in

innovative people solution
The emphasis was on innovation and
growth of higher margin business, while
maintaining high service delivery speed at
lower cost in manpowers core business of
recruitment.

Nissen developed and implemented a strategy

MAP and BSC for the organization in 2004
Nissen and McLachlan were also aware that
this strategy was not used extensively, and in
many cases it was ignored, as there was lack
of consistent communication.
Hence, he thought for overall success of the
business, BSC should be improved.

Market Size
The Australian market for employment
services was estimated at A$12.5 billion in
2003 , and had grown by 13.0% from
2002.
The reason for growth was that companies
were focusing more on investing and
strengthening their core competencies,
and turning to strategic alliances with
employment service providers.

Competitor Dynamics
Adecco Group SA
Market leader for the last six years
Market share of 11.6 percent

Manpower Services(AUS) Pvt. Ltd.

Second largest company
Market share of 6.00 percent

While Skilled Engineering, a strong

performer in temporary placement, was
third with a market share of 5.8 percent

Market Growth Forecast

The recruiting market was forecast to grow 61.7
percent from 2003 to 2008 to reach a value of
A$20.3 billion
While general temporary jobs were projected to
continue to be the largest sector in the
Australian employment services market, with a
value of A$ 7.6billion and 37.5 percent of total
industry revenues
The other forecasted growth sector was
executive search with a forecast of 61 percent
growth

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MANPOWER GLOBAL
Manpower , was a world leader in the employment
services industry, offering customers a range of
services to meet their needs throughout the
employment and business cycle.

Cont.
It specialized in

Permanent
Temporary
Contract recruitment
Employee assessment
Training
career transition
Organizational consulting services

During 2003, the companys 21400 staff employees and 1.6 millions
temporary workers worldwide supplied 780 millions of hours of work.

Cont.
Vision
To be the best worldwide provider of higher value
staffing services and center for quality employment
opportunities.
Values
Manpower global core values are based on three
principles affecting to people, knowledge and innovation.

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MANPOWER AUSTRALIA
Manpower had been operating in Australia and New
Zealand as a human resources solution provider.
Manpower inc. in 1996, 72 offices with 34000
temporary workers.
During 2003, over 85000 permanent and temporary
jobs were filled in Australia and New Zealand by
Manpower.

Cont.
Manpower operated under the brand names of

Manpower
Right Management
Consultants
Manpower Executive
Elan
Manpower city

ORGANIZATION STRUCTURE
Managing
Title in
Director
here

Recruitment
and staffing
solution

Corporate
services

Major
Client
service

Strategic
services

MD office
Executive
officer

STRATEGY CHALLENGES
Flat growth rate
Underperformance of company
Competitors challenges
No innovations and changes

In the absence of a specific Australian

strategy the newly appointed managing
director decided to develop a corporate
strategy based on the corporate vision :
to be recognized as the Australasian
leader in delivering innovative people
solutions.

STRATEGIC THEMES
A focus on clients and candidates
The expansion of service offerings to
provide people solutions throughout the
HR value chain
Supply capability to grow communities
and sectors/industries

strategic initiatives
Grow market share in growth industries
and sectors
Contribute to the employment growth in
communities
Meet industry benchmarks
Reposition the manpower brand as the
authority on work
Proactively manage risk

THE STRATEGY MAP AND BALANCED SCORE

CARD was selected because of these reasons:

Vision and strategy needed to put into

actions
Required changes
Measurement and management
framework
Easy working

THE 4 PERSPECTIVES OF THE BSC

Themes

Objectives

1) Financial perspective.

Provide return on capital

Improve profitability
Improve productivity
Cost containment

2)Customer perspective

Speed of response

3)Internal business perspective Increase the retail client

base as 8% of gross prof
Retain key staff
4)Learning and growth
perspective

THE IMPLEMENTATION PROCESS

Nissen and comprising her senior management team,
undertook to assess the development of BSCs, the
selection of right measures, and the linking of
initiatives with strategy, and to review the progress at
each meeting.
At Manpower, the BSC formulation process had been
relatively top down. And they had not been directly
involved in the formulation of BSC objectives.
A series of road shows and education workshops was
held throughout Manpower.

 The BSC aimed at enabling learning about which

indicators drove financial results.

The company also developed 27 incentive plans that

were linked with the other nonfinancial measures on
the BSC.

In mid-2004, responsibility for the BSC was handed

over to the directors of the individual business units to
drive to lower levels of their respective areas.

Problems & Challenges

SURVEY RESULTS: BENEFITS OF BSC

Benefits Identified

% response

Helped in understanding of business, focus on key

issues, developing management team

85

Nothing will happen if BSC taken out

11

Doesnt drive business decision-making

Survey Results
Usage Identified

% Response

Use it extensively for business analysis

17

BSC dont have any new info to review

17

Only interested in summary level data on monthly basis

14

Weekly financial reports are more relevant and useful

14

BSC information lagging not useful

Drive behavior as it impacts incentives

Its part of their job

Measures not relevant to business

Not interested

Dont have access to BSC

Accuracy of BSC questionable

3
100%

PROBLEMS AND CHALLENGES

The Balanced Scorecard
Nissen and McLachlan were focused on leveraging
this success by refining the BSC.
One problem was that there appeared to be a
blockage in the business using the information
embedded in the BSC.
Information from the BSC evaluation survey found low
usage of the BSC

Business Challenges
The external business environment was
also becoming increasingly challenging for
the company.
major issues and challenges
1) Pressure for low price
2) Lack of understanding of customer
needs
3) High level of service expectations

Business Challenges
The major candidate issues were:
1. Candidate shortage
2. Decreasing candidates loyalty and
stability
3. Poor candidates care.
The main issues and challenging face
from highly competitive market were:
1. Offering low prices.
2. Growth of niche agencies

Business Challenges
The current issues with people side of the
business were many, but the most
important were:
1.Finding the right consultant
2.Low staff retention

Conclusion

Q:1-What are strategic themes identified

and strategic initiatives proposed to
address issue in the case?
strategic themes are identified:1) Focus on clients and candidates.
2) The expansion of service offering to
provide people solutions.
3) Supply capability to grow communities
and industries.

Five strategic initiatives were

proposed :1) Grow market share in growth industries
and sectors.
2) Contribute to the employment growth in
communities.
3) Meet industry benchmarks.
4) Reposition the manpower brand as the
authority of work.
5) Proactively manage risk.

Q:2- Why balance score card tool was

chosen by Nissan as the strategy
implementation tool ?
A common ,fact-based approach to
measurement.
To link long-term financial success to
current customers ,employees and
systems performance.
To achieve long term common goals.

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