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Michael is a small electrician who lives in Nashville. He’s been in business since the early 2000’s. He services Smyrna, Goodlettsville, Murfreesboro, Woodbury, and West Nashville. A typical visit last between half an hour and 90 minutes. He has a large roster of customers most of whom call him once or twice a year. However, he does have two large apartment buildings behind Vanderbilt University that he services on a pretty regular basis. These two large customers account for about 50% of his gross revenue.

To keep his costs down has always operated from his home in East Nashville. He was able to buy an older home and fix it up and recently he has had many requests to sell his home. Each year his costs increase but is revenue fluctuates. He has noticed that many of his fixed costs such as his annual audit fee and the cost of maintaining his vehicle and become larger and larger portions of his revenue. He also notices that the amount he spends on gas increases much more than the cost of gas would seem to justify.

When he first started Michael would always spend time with his customers before the visit finding out about their day-to-day activities and family news. That is seldom possible now. Many of his customers who were in the prime of their life are now retired and living on a fixed income.

Michael goes out of his way to choose customers are totally satisfied. Some of his customers will often ask him to come back multiple times to get a light fixture just right. Michael seldom charges for more than one visit per installation.

1. Mike just got his annual financials and yet again he has lost money. The amount in about the same as last year with a loss of $12,000 on a turnover of $150,000. During the course of the year Mike hired a bright graduate of UTK who had discovered his liberal arts degree was quite useless. After 9 months Mike just had to fire him because he was not learning fast enough and not earning his $45,000 salary. Mike is back to just him and he just know where to go forward. Can you help.

2. Prepare a strategy map for Mike’s Electrical.

3. Use the strategy map to design a balanced scorecard for Mike’s electrical.