Ethics, Performance Measures, And The Balanced Scorecard

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Part 1 (Individual Portion)

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, you should complete the following:

Define the elements that might be presented in a balanced scorecard.  Explain how the elements will be used.

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Make a recommendation of whether or not EEC should adopt the balanced scorecard.

If adopted, how might it improve the company?

Part 2 (Group Portion)

The President of EEC realizes that the balanced scorecard translates an organization’s mission and strategy into operational objectives and performance measures. Discuss the following in the group 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?

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