Many of the benefits of a balanced scorecard approach are evident in the improved operations at United Airlines. At the time it fi led for bankruptcy, United had a reputation for some of the worst service in the airline business. But when Glenn Tilton took over as United's chief executive officer, he recognized that things had to change. He implemented an incentive program that allows all of United's 63,000 employees to earn a bonus of 2.5 % or more of their wages if the company "exceeds its goals for on-time flight departures and for customer intent to fly United again." After instituting this program, the company's on- time departures were among the best, its customer complaints were reduced considerably, and the number of customers who said that they would fly United again was at its highest level ever. Sources: Susan Carey,. "Friendlier Skies: In Bankruptcy, United Airlines Forges a Path to Better Service," Wall Street Journal (June 15, 2004); and Emre Serpen, "More to Maintain," Airline Business (November 2012), pp. 38-40. Which two perspectives of a balanced scorecard were the focus of United's CEO? 1. 2.

Many of the benefits of a balanced scorecard approach are evident in the improved operations at United Airlines. At the time it fi led for bankruptcy, United had a reputation for some of the worst service in the airline business. But when Glenn Tilton took over as United's chief executive officer, he recognized that things had to change. He implemented an incentive program that allows all of United's 63,000 employees to earn a bonus of 2.5 % or more of their wages if the company "exceeds its goals for on-time flight departures and for customer intent to fly United again." After instituting this program, the company's on- time departures were among the best, its customer complaints were reduced considerably, and the number of customers who said that they would fly United again was at its highest level ever. Sources: Susan Carey,. "Friendlier Skies: In Bankruptcy, United Airlines Forges a Path to Better Service," Wall Street Journal (June 15, 2004); and Emre Serpen, "More to Maintain," Airline Business (November 2012), pp. 38-40. Which two perspectives of a balanced scorecard were the focus of United's CEO? 1. 2.

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter23: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 23.23.3CP: Communication The senior management of Tungston Company has proposed the following three performance...

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