Twitter Balances Scorecard Report

Executive Summary

The purpose of this report is to present a balances scorecard designed for Twitter to incorporate innovation and help to address identified performance problems. Based on SWOT analysis which included strengths, weaknesses, opportunities and treats for Twitter, performance problems were identified and mainly in the internal perspective. In the balanced score card which to manage performance through considering 4 performance perspectives:

• Financial perspective on reconceptualised as stakeholder value which allows for financial and non- financial value.
• Internal process perspective needs to consider competitive and collaborate network
• Customer perspective on opportunity to evaluate for sources of innovation.
• Learning and growth that include knowledge management processes.

This report also discussed about encouraging more general approach to performance management through the introduction of a balanced scorecard (BSC). Implications for human resource management are pointed out that HRM practices play the role to support innovation within organisations and establishing the role of the human resources function with Twitter for understanding the HRM role in implementing the proposed balances scorecard.

Table of Contents

Executive Summary        1

1.0 Introduction        3

2.0 Rationale for adopting PMS (balanced scorecard)        4

3.0 Overall design of balanced scorecard        6

3.1 Internal Processes Perspective        7

3.1.1 Past Internal Processes Performance        7

3.1.2 Incorporation of Innovation        7

3.1.3 Proposed new measures incorporating innovation        8

3.2 Learning and Growth Perspective        9

3.2.1 Past Learning and Growth Performance        9

3.2.2 Incorporation of Innovation        9

3.2.3 Proposed new measures incorporating innovation        10

3.3 Customer Perspective        11

3.3.1 Past Customer Performance        11

3.3.2 Incorporation of Innovation        11

3.3.3 Proposed new measures incorporating innovation        12

3.4 Financial Perspective        12

3.4.1 Past Financial Performance        12

3.4.2 Incorporation of Innovation        13

3.4.3 Proposed new measures incorporating innovation        13

4.0 Conclusion and Implications for HRM        14

References        15

Appendices        16

1.0 Introduction

Twitter is a social networking microblogging platform where people communicate and interact in a short posts known as tweets (Rouse 2016). Twitter was found in 2006 by Jack Dorsey,  Noah Glass, Biz Stone, and Evan Williams, headquartered in San Francisco, California. As of 2019, Twitter has more than 35 offices with 3920 employees and 326 millions users around the world (Gil 2018; Twitter's Competitors, Revenue, Number of Employees, Funding and Acquisitions n.d.). Twitter has been poor in internal process performance which had affected the performance in other three perspectives; learning and growth, customers and financial perspectives. Twitter faced many issues in internal process performance which affected the organisational performance such as lack of innovation lead to fail to keep up with competitors as well as the discrimination lawsuit and customer security safety issue damaged the image of Twitter (Safian 2017; Linshi 2014; Gartenberg 2018). Failing company leadership lead to low company performance. Hence, learning and growth of employees being affected as employees skills and the amount spent in employees training decreased (Twitter 2018). Without learning, training and growth in the company due to lack of equality in growth, employees tend to leave (Linshi 2015). As for customer perspective, Twitter losses a huge amount of monthly active users due to regular negative complaints which caused customers lawsuit against Twitter and also the cleaned up efforts (Kastrenakes 2019; Sorace 2019; Bell 2019). Therefore, financial perspectives such as Twitter’s revenue, market share held in UK and cumulative total return to stockholder had been affected negatively (Twitter 2018; Stipp n.d.).

2.0 Rationale for adopting PMS (balanced scorecard)

[pic 1]

Figure 1: SWOT Analysis

According to Kaplan and Norton (1992), balanced scorecard provides a guideline for the leadership of a company to view its business comprehensively. The balanced scorecard has four perspectives including financial, customer, internal business and learning and growth perspective. Financial measures are the results of the implementation of the action plan. The results are generated from the customer satisfaction, internal business processes, and the innovation and improvement actions of an organisation, which is the key factors of future financial performance. Twitter can use balanced scorecard, as known as performance management system (PMS) to solve its internal and external problems.

One of the purposes is strategic purpose. With PMS, the top management of Twitter is able to achieve its strategic business objective, which is “to give everyone the power to create and share ideas and information instantly without barriers” (Twitter 2019). Next, PMS has the information purpose. PMS can help Twitter to communicate important information to all of the employees and also outline the specific information about the areas that Twitter needs to improve. For instance, with PMS, the employees are informed of Twitter’s current performance, such as it has strong brand image, it is a preferred channel of communication for businesses and it enjoys first mover advantage (e.g. brand name recognition and economies of scale). Besides, PMS also inform the employees that Twitter is facing fail leadership, insufficient innovation, data safety issues and gender inequality in workforce. Externally, the demand of social media is rising. The social platforms grow continuously, and this has created a golden opportunity for marketing to reach consumers and have interactions with them. Besides, generations nowadays are tech savvy, this give Twitter opportunity to obtain even more users. Moreover, as the concern for environment protection is growing, the roles of social media can potentially take are bullhorn and tallying system. Twitter can take this opportunity to provide a platform for environment protection for example the use of hashtag. On the other hand, with the help of PMS, the external threat that may influence Twitter will also be informed to the employees. The threat that influences Twitter is the intense competition among the companies in the industry. Bhasin (2018) stated that the competitors included Facebook, WhatsApp, Snapchat and others. Furthermore, social engineering such as scams, phishing and identity theft that happens on social media, including Twitter has becoming a threat for the company. To be worst, studies show that social media could negatively affect users’ mental health. The mental effect such as depression will discourage people to use social media, including Twitter. The other purpose of is organisational maintenance purpose. Twitter needs to respond to its internal and external needs therefore a workforce planning is needed. PMS helps to address the information of future training needs, the evaluation of organisational performance achievements and the effectiveness of HR efforts on improving employees through training programs.