Questions to accompany final case study, 'Creating Incentives for Change by Keeping Score'
Evaluate the proposed BSC as follows:
a. From the Discussion section or the BSC literature, what are good criteria to evaluate the BSC measures? How well does the draft scorecard meet the criteria that were stated?
b. Evaluate the draft scorecard in Table 1. How well does it meet the criteria that were stated? List the major shortcomings.
c. What information is needed for these measures?
d. For each measure, determine the level of analysis (i.e., individual, business team, or company
Creating Incentives for Change by Keeping Score
Elite Engineering Scorecard Development
In a company based quest for growth and sustainability, Elite Engineering (EE) has set goals toward a five-year plan to achieve and ensure such. Unfortunately, no one has yet created a reward system designed toward the achievements of the team as opposed to the unchanged yearend bonus based primarily upon the individual. With a proposed scorecard, COO Stuart Weismann has selected three team leaders to assist in making the scorecard more applicable to the corporate goal of teamwork. The following is an analysis of that scorecard.
A. Some of the measurement tools which can be used to evaluate the BSC measures for Elite Engineering (EE) include: financial reports (both monthly and the final annual report); individual records, like Joe's team members' bill bible hours, kept within the business team; rating surveys on completed projects, conducted and measured by the company; records of new clients per each business team, recorded by the team leaders, like Joe.
Since this scorecard is designed to promote the business team, more of the scorecard's measurement pertaining to the team efforts, as opposed to the individual's efforts, should be considered. This can be affected by weighting or through eliminating some of the individual's measurements, as the scorecard has already done. While billable hours are still counted toward the company's yearend bonus, other individual accomplishments can be eliminated or rated as less worthy of consideration, with higher consideration going to team efforts and accomplishments. Bob Martin has already identified this problem in his statement, ...
An analysis of a BSC for a company wishing to move toward a team based operation rather than an individual reward system as is now in place.