Part 1 - Your boss recently attended an accounting seminar at which the balanced scorecard was discussed. He has asked you to write about the balanced scorecard and how EEC might adopt it. In your writing, you should discuss 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?
Part 2 - The President of EEC (Edisson Electric Company) 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 about tying compensation to performance measures. Discuss the following:
- 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?