IN PRACTICEInfosys Develops a Balanced Scorecard to Describe and Implement Its StrategyInfosys was founded in India in 1981 by seven engi-neers as an IT "body shop"-a firm that deployedskilled IT labor to work, on a contract basis, for clients.Throughout the 1980s and 1990s, the programmer-for-hire business flourished along with the increasedglobal demand for IT systems and maintenance.Infosys soon developed the capabilities it needed to be-come an outsourcer, executing IT projects for clientsfrom its facilities in India. Its success in executing suchcomplex projects led some clients to hire Infosys tomanage software projects end to end, from project ar-chitecture to detailed programming. Within a decade,Infosys had shifted its operating model from supplyinglabor for one segment of a job to designing, managing,and delivering complete software projects.In the early 2000s, Infosys expanded its portfolio ofservices beyond traditional IT outsourcing, to partner-ing with large global clients to transform their busi-nesses through advanced IT products, services, andsolutions. In 2005, the firm had only five contracts worthmore than $50 million. By early 2008, it had 18 clientsSource: F. Asis-Martinez, R. S. Kaplan, and K. Miller, "Infosys' Relationship Scorecard: Measuring TransformationalPartnerships," HBS No. 1-108-006 (Boston: Harvard Business School Publishing, 2008).generating $50 million or more in revenue and six clientsthat were generating more than $100 million. Thesedeals usually involved multiple services performedover several years.As part of the company's transformation from anIT body shop and outsourcer to a trusted transforma-tional partner with large global corporations, theInfosys executive team developed a Balanced Score-card to provide a comprehensive framework by whichit could formulate, communicate, and monitor its strat-egy. Infosys's CEO explained the role that the BSCplayed in the company's recent growth:The BSC allows us to promote constant changethrough stretch goals. Since 2002, we have suc-cessfully steered the transformation of ourcompany through various stages of its evolutionusing the Balanced Scorecard. We continue totake on new strategic challenges that require usto manage change. These challenges require us tobetter execute our strategies comprehensivelyacross the Balanced Scorecard perspectives. LO 2, 4, 52-41 Designing a Balanced Scorecard, new strategies, customer measuresto the In Practice description of Infosys on page 24.ReferRequired(a) Why would a company with Infosys's history find the Balanced Scorecard important forcamanaging its growth and monitoring its performance?(b) What customer measures would you recommend that Infosys use in its Balanced Scorecard?(c) What employee measures would you recommend that Infosys use in its BalancedScorecard?

Question

IN PRACTICEInfosys Develops a Balanced Scorecard to Describe and Implement Its StrategyInfosys was founded in India in 1981 by seven engi-neers as an IT &#34;body shop&#34;-a firm that deployedskilled IT labor to work, on a contract basis, for clients.Throughout the 1980s and 1990s, the programmer-for-hire business flourished along with the increasedglobal demand for IT systems and maintenance.Infosys soon developed the capabilities it needed to be-come an outsourcer, executing IT projects for clientsfrom its facilities in India. Its success in executing suchcomplex projects led some clients to hire Infosys tomanage software projects end to end, from project ar-chitecture to detailed programming. Within a decade,Infosys had shifted its operating model from supplyinglabor for one segment of a job to designing, managing,and delivering complete software projects.In the early 2000s, Infosys expanded its portfolio ofservices beyond traditional IT outsourcing, to partner-ing with large global clients to transform their busi-nesses through advanced IT products, services, andsolutions. In 2005, the firm had only five contracts worthmore than $50 million. By early 2008, it had 18 clientsSource: F. Asis-Martinez, R. S. Kaplan, and K. Miller, &#34;Infosys' Relationship Scorecard: Measuring TransformationalPartnerships,&#34; HBS No. 1-108-006 (Boston: Harvard Business School Publishing, 2008).generating $50 million or more in revenue and six clientsthat were generating more than $100 million. Thesedeals usually involved multiple services performedover several years.As part of the company's transformation from anIT body shop and outsourcer to a trusted transforma-tional partner with large global corporations, theInfosys executive team developed a Balanced Score-card to provide a comprehensive framework by whichit could formulate, communicate, and monitor its strat-egy. Infosys's CEO explained the role that the BSCplayed in the company's recent growth:The BSC allows us to promote constant changethrough stretch goals. Since 2002, we have suc-cessfully steered the transformation of ourcompany through various stages of its evolutionusing the Balanced Scorecard. We continue totake on new strategic challenges that require usto manage change. These challenges require us tobetter execute our strategies comprehensivelyacross the Balanced Scorecard perspectives. LO 2, 4, 52-41 Designing a Balanced Scorecard, new strategies, customer measuresto the In Practice description of Infosys on page 24.ReferRequired(a) Why would a company with Infosys's history find the Balanced Scorecard important forcamanaging its growth and monitoring its performance?(b) What customer measures would you recommend that Infosys use in its Balanced Scorecard?(c) What employee measures would you recommend that Infosys use in its BalancedScorecard?

Accepted Answer

A strategic management framework known as the Balanced Scorecard (BSC) offers a balanced and…