Balanced Scorecard Success Story | ACIR Radio Group, Mexico
Acir Radio Group revolutionized their business model and became a success story with the help of the Balanced Scorecard. By doing so, in the year 2008 alone, their ad revenues increased 37%, their EBITDA increased 47% and they managed to grow twice as much as their competitors.
Balanced Scorecard Hall of Fame Award – 2011)
The Hall of Fame Award honors organizations that have achieved excellence in their businesses by implementing the Balanced Scorecard methodology, which is the most-used method for strategy management in the world.
The prestigious magazine Harvard Business Review has classified the Balanced Scorecard method as one of the most important concepts to be developed for business in decades. Accordingly, both Dr. Robert S. Kaplan and Dr. David P. Norton (creators of the BSC), have been recognized among the most important academics for top management.
The BSC is based on a simple premise: “What can be measured, can be controlled, and what can be controlled, can be improved”. It is a strategy management philosophy that concretely links the strategy with the day-to-day operations.
Organizations that use this system are better equipped to obtain the knowledge needed to capitalize new opportunities, to mitigate risks and to improve their organizational performance.
Founded in the year 2000, the Hall of Fame Award has lauded 128 organizations including companies like Best Buy, Hilton Hotels, Infosys Technologies, Motorola, Brigham and Women's Hospital and Ricoh Corporation, which occupy the public and private sector in more than 20 countries.
Winners are selected according to the quality of their BSC implementation and for reporting outstanding results for a period of more than two consecutive years.
Acir Group has been the most innovative company in the Mexican radio broadcasting industry for almost half a century, standing out as one of the most important broadcasters in Latin America. Acir Group is made up of almost 175 radio stations and websites that allow it a wide coverage in the entire network. Its association with Clear Channel Communications (the biggest radio company in the world), has allowed it to maintain and uphold its forefront position in programing, promotion and telecommunication technology.
In recent years, the organization decided to part with its paradigms and past practices by diversifying their customers instead of focusing almost exclusively on political and governmental clients. This was achieved with the creation of new strategies and new products for different markets.
In 2008, their EBITDA increased a staggering 47%. Similarly, their rate and market share increased, generating a 10% growth of the company, almost five points above the industry average. Acir Group has adopted the BSC throughout the organization, even cascading it to their Board of Directors, and creating individual scoreboards for the strategy core team members.
Mr. Francisco Ibarra Lopez, President and Founder, says: “The Balanced Scorecard has created synergies between business units and shared services, eliminating silos and placing our focus squarely on strategy execution.”
With the help of the Balanced Scorecard methodology, Acir Group has truly become a Strategy Focused Organization and is reaping the benefits of having done so.
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Author: Trissa Strategy Consulting
Source: Hall of Fame 2011