Actual Target Performance Performance Objectives Financial Perspective Measures Increase shareholder value Operating-income changes from productivity Operating-income changes from growth $800,000 $2,400,000 $520,000 $250,000 Increase in revenue from new customer acquisition $50,000 $24,000 Customer Perspective Positive customer survey Increase customer satisfaction 65% 70% responses New customers acquired through Increase customer acquisition company sponsored community events 475 350 Internal-Business-Process Perspective Research and development costs as a percentage of revenue Develop innovative services 5% 6% Increase installation efficiency Increase community involvement Installation time per customer Number of new programs with community organizations Number of employees injured in the workplace 5 hours 4.5 hours 12 15 Decrease workplace injuries Learning-and-Growth Perspective Increase employee competence Number of annual training-hours per employee Number of leadership workshops 10 11 Increase leadership skills offered Increase employee safety Percent of employees who have completed safety certification training awareness 100% 95% 2. 1. Was Comtex successful in implementing its strategy in 2017? Explain. 2. Do you agree with Comtex's decision to include measures of developing innovative services (research and development costs) in the internal-business-process perspective of the balanced scorecard? Explain briefly. 3. Is there a cause-and-effect linkage between the measures in the internal-business-process perspective and the customer perspective? That is, would you add other measures to the internal-business-process perspective or the customer perspective? Why or why not? Explain briefly. 4. Why do you think Comtex included balanced scorecard measures relating to employee safety and com- munity engagement? How well is the company doing on these measures? Required
Actual Target Performance Performance Objectives Financial Perspective Measures Increase shareholder value Operating-income changes from productivity Operating-income changes from growth $800,000 $2,400,000 $520,000 $250,000 Increase in revenue from new customer acquisition $50,000 $24,000 Customer Perspective Positive customer survey Increase customer satisfaction 65% 70% responses New customers acquired through Increase customer acquisition company sponsored community events 475 350 Internal-Business-Process Perspective Research and development costs as a percentage of revenue Develop innovative services 5% 6% Increase installation efficiency Increase community involvement Installation time per customer Number of new programs with community organizations Number of employees injured in the workplace 5 hours 4.5 hours 12 15 Decrease workplace injuries Learning-and-Growth Perspective Increase employee competence Number of annual training-hours per employee Number of leadership workshops 10 11 Increase leadership skills offered Increase employee safety Percent of employees who have completed safety certification training awareness 100% 95% 2. 1. Was Comtex successful in implementing its strategy in 2017? Explain. 2. Do you agree with Comtex's decision to include measures of developing innovative services (research and development costs) in the internal-business-process perspective of the balanced scorecard? Explain briefly. 3. Is there a cause-and-effect linkage between the measures in the internal-business-process perspective and the customer perspective? That is, would you add other measures to the internal-business-process perspective or the customer perspective? Why or why not? Explain briefly. 4. Why do you think Comtex included balanced scorecard measures relating to employee safety and com- munity engagement? How well is the company doing on these measures? Required
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.2.2P
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Balanced scorecard, social performance. Comtex Company provides cable and Internet services in the greater Boston area. There are many competitors that provide similar services. Comtex believes that the key to financial success is to offer a quality service at the lowest cost. Comtex currently spends a significant amount of hours on installation and post-installation support. This is one area that the company has targeted for cost reduction. Comtex’s balanced scorecard for 2017 follows.
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