Your boss recently attended an accounting seminar at which the balanced scorecard was discussed. He has asked you (or your group) to prepare a presentation for the next manager’s meeting about the balanced scorecard and how EEC might adopt it. In your presentation, you (or your group) should complete the following:
- Define the elements that might be presented in a balanced scorecard.
- Explain how the elements will be used.
- Make a recommendation of whether or not EEC should adopt the balanced scorecard.
- If adopted, how might it improve the company?
The President of EEC realizes that the balanced scorecard translates an organization’s mission and strategy into operational objectives and performance measures. You received an e-mail from him asking you to include information in your PowerPoint presentation about tying compensation to performance measures. Discuss the following in your presentation:
- Describe 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?