Lesson 16
Deborah Merna
Lesson 16, Course 657
1. As someone with more knowledge of the balanced scorecard than almost anyone else in the company, you have been asked to build an integrated balanced scorecard. In your scorecard, use only performance measures listed previously. You do not have to use all of the performance measures suggested by the managers, but you should build a balanced scorecard that reveals a strategy for dealing with the problems with accounts receivable and with unsold merchandise. Construct the balanced scorecard following the format used in Exhibit 12—8. Do not be concerned with whether a specific performance measure falls within the learning and growth, internal business process, customer, or financial perspective. However, use arrows to show the causal links between performance measures within your balanced scorecard and explain whether the performance measures should show increases or decreases.
Financial
+
Total profit
Written-off accounts receivable as a percentage of sales
Average age of accounts receivable
Customer
Customer satisfaction with accuracy of charge account bills
+
Unsold inventory at end of season as a percentage of total cost of sales
Internal
Business
Processes
Percentage of charge account bills containing errors
+
+
Percentage of suppliers making just-in-time deliveries
Percentage of sales clerks trained to correctly enter data on charge account slips
Learning
and
Growth
A number of the performance measures suggested by managers have not been included in the above balanced scorecard. The excluded performance measures may have an impact on total profit, but they are not linked in any obvious way with the two key problems that have been identified by management—accounts receivables and unsold inventory. If every performance measure that potentially impacts profit is included in a company’s balanced scorecard, it would become unwieldy and focus would be lost.
2. Assume that the
Lesson 16, Course 657
1. As someone with more knowledge of the balanced scorecard than almost anyone else in the company, you have been asked to build an integrated balanced scorecard. In your scorecard, use only performance measures listed previously. You do not have to use all of the performance measures suggested by the managers, but you should build a balanced scorecard that reveals a strategy for dealing with the problems with accounts receivable and with unsold merchandise. Construct the balanced scorecard following the format used in Exhibit 12—8. Do not be concerned with whether a specific performance measure falls within the learning and growth, internal business process, customer, or financial perspective. However, use arrows to show the causal links between performance measures within your balanced scorecard and explain whether the performance measures should show increases or decreases.
Financial
+
Total profit
Written-off accounts receivable as a percentage of sales
Average age of accounts receivable
Customer
Customer satisfaction with accuracy of charge account bills
+
Unsold inventory at end of season as a percentage of total cost of sales
Internal
Business
Processes
Percentage of charge account bills containing errors
+
+
Percentage of suppliers making just-in-time deliveries
Percentage of sales clerks trained to correctly enter data on charge account slips
Learning
and
Growth
A number of the performance measures suggested by managers have not been included in the above balanced scorecard. The excluded performance measures may have an impact on total profit, but they are not linked in any obvious way with the two key problems that have been identified by management—accounts receivables and unsold inventory. If every performance measure that potentially impacts profit is included in a company’s balanced scorecard, it would become unwieldy and focus would be lost.
2. Assume that the