Part -1:
Your boss recently attended an accounting seminar at which the balanced scorecard was discussed. He has asked you to prepare a presentation for the next manager's meeting about the balanced scorecard and how EEC might adopt it. In your presentation, complete the following:
- Define the elements that might be presented in a balanced scorecard
- Explain how it is used
- Make a recommendation of whether or not EEC should adopt the balanced scorecard
- If adopted, how might itimprove the company?
Part -2:
The President of EEC has decided to adopt the balanced scorecard. The balanced scorecard translates an organization's mission and strategy into operational objectives and performance measures for 4 different perspectives. You received an e-mail from him asking about tying compensation with performance measures. Discuss the following in your response:
- Discuss unethical behavior that can result if the wrong performance measures are used to tie performance measures to compensation.
- How can EEC avoid these behaviors?
- How should EEC tie performance measures to compensation?
- Who is responsible for establishing the performance measures?