(a) The owner of a hotel wants to introduce a Balanced Scorecard (BSC). She has seen that similar hotels have already started to implement the BSC. The main concern for the hotel is employee turnover. Employee turnover is increasing and the owner believes this may be affecting the performance of the hotel. Required Prepare a short memo to the owner evaluating the potential benefits for staff of implementing a Balanced Scorecard. (b) Some management accountants believe the BSC may not actually improve financial performance? Required Evaluate the conceptual and practical limitations of the BSC. This a broad question requiring a range of issues to be raised.

(a) The owner of a hotel wants to introduce a Balanced Scorecard (BSC). She has seen that similar hotels have already started to implement the BSC. The main concern for the hotel is employee turnover. Employee turnover is increasing and the owner believes this may be affecting the performance of the hotel. Required Prepare a short memo to the owner evaluating the potential benefits for staff of implementing a Balanced Scorecard. (b) Some management accountants believe the BSC may not actually improve financial performance? Required Evaluate the conceptual and practical limitations of the BSC. This a broad question requiring a range of issues to be raised.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter28: The Balanced Scorecard And Corporate Social Responsibility

Section: Chapter Questions

Problem 4CMA: A sign of the successful implementation of a balanced scorecard is the presence of cause-and-effect...

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A sign of the successful implementation of a balanced scorecard is the presence of cause-andeffect relationships. An example of this success for a hotel is meeting the target of:a. decreasing a customer’s check-in time, which causes an increase in the number of implemented employee suggestions. b. increasing employee training hours, which causes employee compensation to increase.c. increasing profit, which causes an increase in employee job satisfaction ratings.d. receiving more 5-star ratings from customers, which causes an increase in profit.
QUESTION TWO PwC said in a memo to employees this week that it is offering this new policy to attract and retain talent and become more diverse. As a manager, discuss the additional approaches PwC should implement in order to achieve diversity.
Assume service scores for the area you manage, Harrah’s Metropolis hotel housekeeping, have declined over the past year. As part of the LEAN rollout at Metropolis, you and some of your front-line employees will participate in a kaizen event focused on improving guest-room housekeeping operations. What KPIs (key performance indicators) would you propose to track to determine whether the changes implemented through the kaizen effort actually improve performance?
Taylor Construction builds custom homes in Dallas, Texas. Brandon Taylor knows that his future depends on the quality of the homes he builds and the service he provides to customers. Most new-customer sales arise from word-of-mouth advertising by former customers.Identify the balanced scorecard perspective for each measure in the exercise. Perspective a. Number of customer complaints Internal business processesCustomerLearning & growthFinancial b. Employee turnover Learning & growthFinancialInternal business processesCustomer c. Net profit per house constructed Learning & growthFinancialInternal business processesCustomer d. Turnaround time on customer design changes Learning & growthInternal business processesCustomerFinancial e. Hours of training per employee Learning & growthFinancialInternal business processesCustomer f. Average labor cost per house CustomerLearning &…
Creating Balanced Scorecard? that Support Different Strategies The Midwest Consulting Group (MCG) helps companies build balanced scorecards. As part of its marketing efforts. MCG conducts an annual balanced scorecard workshop for prospective clients. As MCG’s newest employee, your boss has asked you to participate in this year’s workshop by explaining to attendees how a company’s strategy determines the measures that are appropriate for its balanced scorecard. Your boss has provided you with the excerpts below from the annual reports of two current MCG clients. She has asked you to use these excerpts in your portion of the workshop. Excerpt from Applied Pharmaceuticals’ annual report: The keys to our business are consistent and timely new product introductions and manufacturing process integrity. The new product introduction side of the equation is a function of research and development (R&D) yield (e.g., the number of marketable drug compounds created relative to the total number…
Balanced scorecard Several years ago. United Parcel Service (UPS) believed that the Internet was going to change the parcel delivery market and would require UPS to become a more nimble and customer-focused organization. As a result, UPS replaced its old measurement system,which was 90% oriented toward financial performance, with a balanced scorecard. The scorecard emphasized four "point of arrival" measures, which were 1.Customer satisfaction index—a measure of customer satisfaction. 2.Employee relations index—a measure of employee sentiment and morale. 3.Competitive position—delivery performance relative to competition. Time in transit—the time from order entry to deliver)'.a.Why did UPS introduce a balanced scorecard and nonfinancial measures in its newperformance measurement system? b.Why do you think UPS included a factor measuring employee sentiment?
Breaking down resistance to a new strategic vision typically requires that management, on an as needed basis, Select one: O A. reiterate the company's need for the new direction, while addressing employee concerns head- on, calming fears, lifting spirits, and providing them with updates and progress reports as events unfold. O B. raise wages and salaries to win the support of company personnel for the company's new direction. O C. institute a balance scorecard to measuring company performance, with the balance including a mixture of both old and new performance measures. O D. explain all updates and merits of the company's business model to align strategy with employee concerns. O E. inform company personnel about forthcoming changes in the company's strategy.
The Midwest Consulting Group (MCG) helps companies build balanced scorecards. As part of itsmarketing efforts, MCG conducts an annual balanced scorecard workshop for prospective clients. AsMCG’s newest employee, your boss has asked you to participate in this year’s workshop by explainingto attendees how a company’s strategy determines the measures that are appropriate for its balancedscorecard. Your boss has provided you with the excerpts below from the annual reports of two currentMCG clients. She has asked you to use these excerpts in your portion of the workshop.Excerpt from Applied Pharmaceuticals’ annual report:The keys to our business are consistent and timely new product introductions and manufacturingprocess integrity. The new product introduction side of the equation is a function of research andd evelopment (R&D) yield (e.g., the number of marketable drug compounds created relative to thetotal number of potential compounds pursued). We seek to optimize our R&D yield…
Lily Shultz is a junior majoring in hotel and restaurant management. She wants to work for a large hotel chain with the goal of eventually managing a hotel. She is considering the possibility of taking a course in either financial accounting or cost management. Before choosing, however, she has asked you to provide her with some information about the advantages that each course offers. Required: Prepare a letter advising Lily about the differences and similarities between financial accounting and cost management. Describe the advantages each might offer the manager of a hotel.
Assume you have been hired by Hilton Hotels and Resorts. As part of your new role in the accounting department, you have been tasked to set up a responsibility accounting structure for the company. As your first task, your supervisor has asked you to give an example of a cost center, profit center, and an investment center within the Hilton organization. Your supervisor is a little unsure of the difference between a profit center and investment center and would like you to explain the difference.
Instructions 1.Based on the balanced scorecard and the following descriptions of the predicted relationships between strategic objectives, draw the scorecards strategy map. a.Training employees effectively and reducing employee turnover can both be expected to improve returns processing and reduce shipping errors. b.Both improving returns processing and reducing shipping errors can be expected to delight the customer. c.Delighting the customer can be expected to increase market share. 2.Based on the balanced scorecard and the following descriptions of the predicted relationships between performance metrics, draw the scorecards measure map. a.Median training hours per employee and average employee tenure will both influence hours from returned to refunded and number of erroneous shipments. b.Both hours from returned to refunded and number of erroneous shipments will affect percentage of customers who shop again and online customer satisfaction rating. c.Both percentage of customers who shop again and online customer satisfaction rating will influence the companys market share. 3.Label each element of the balanced scorecard.
(Appendix 11A) Balanced Scorecard The following list gives a number of measures associated with the Balanced Scorecard: a. Number of new customers b. Percentage of customer complaints resolved with one contact c. Unit product cost d. Cost per distribution channel e. Suggestions per employee f. Warranty repair costs g. Consumer satisfaction (from surveys) h. Cycle time for solving a customer problem i. Strategic job coverage ratio j. On-time delivery percentage k. Percentage of revenues from new products Required: 1. Classify each performance measure as belonging to one of the following perspectives: financial, customer, internal business process, or learning and growth. 2. Suggest an additional measure for each of the four perspectives.