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 new-performance measurement system? b.Why do you think UPS included a factor measuring employee sentiment?

BuyFind

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
Publisher: Cengage Learning
ISBN: 9781305961883
BuyFind

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
Publisher: Cengage Learning
ISBN: 9781305961883

Solutions

Chapter
Section
Chapter 14, Problem 14.2MBA
Textbook Problem

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 new-performance measurement system?
b.Why do you think UPS included a factor measuring employee sentiment?

Expert Solution

Want to see the full answer?

Check out a sample textbook solution.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 14 Solutions

Survey of Accounting (Accounting I)
Ch. 14 - What is the major shortcoming of using operating...Ch. 14 - Why should the factors under the control of the...Ch. 14 - In a decentralized company in which the divisions...Ch. 14 - How does using the return on investment facilitate...Ch. 14 - The returns on investment for Shear Co.'s three...Ch. 14 - What is the objective of transfer pricing?Ch. 14 - When is the negotiated price approach preferred...Ch. 14 - Why would standard cost be a more appropriate...Ch. 14 - When using the negotiated price approach to...Ch. 14 - Budget performance reports for cost centers...Ch. 14 - Divisional income statements The following data...Ch. 14 - Service department charges and activity bases For...Ch. 14 - El 4-4 Activity bases for service department...Ch. 14 - Service department charges In divisional income...Ch. 14 - Service department charges and activity bases...Ch. 14 - Divisional income statements with service...Ch. 14 - Corrections to service department charges Panda...Ch. 14 - Profit center responsibility reporting On-Demand...Ch. 14 - Return on investment The operating income and the...Ch. 14 - Residual income Based on the data in Exercise...Ch. 14 - Determining missing items in return on investment...Ch. 14 - Profit margin, investment turnover, and return on...Ch. 14 - Return on investment The Walt Disney Company has...Ch. 14 - Determining missing items in return on investment...Ch. 14 - Determining missing items from computations Data...Ch. 14 - Transfer pricing Wiring used by the Appliance...Ch. 14 - Transfer pricing Based on Kaufman Manufacturing's...Ch. 14 - Budget performance report for a cost center Sneed...Ch. 14 - Budget performance report for a cost center Sneed...Ch. 14 - Profit center responsibility reporting A-One...Ch. 14 - Profit center responsibility reporting A-One...Ch. 14 - Profit center responsibility reporting A-One...Ch. 14 - Divisional income statements and return on...Ch. 14 - Divisional income statements and return on...Ch. 14 - Divisional income statements and return on...Ch. 14 - Effect of proposals on divisional performance A...Ch. 14 - Effect of proposals on divisional performance A...Ch. 14 - Effect of proposals on divisional performance A...Ch. 14 - Effect of proposals on divisional performance A...Ch. 14 - Effect of proposals on divisional performance A...Ch. 14 - Divisional performance analysis and evaluation The...Ch. 14 - Divisional performance analysis and evaluation The...Ch. 14 - Divisional performance analysis and evaluation The...Ch. 14 - Divisional performance analysis and evaluation The...Ch. 14 - Prob. 14.6.1PCh. 14 - Prob. 14.6.2PCh. 14 - Prob. 14.6.3PCh. 14 - Prob. 14.6.4PCh. 14 - Prob. 14.6.5PCh. 14 - Balanced scorecard American Express Company (AXP)...Ch. 14 - Balanced scorecard Several years ago. United...Ch. 14 - Balanced scorecard Delta Air Lines, Inc. (DAL)...Ch. 14 - Balanced scorecard Costco Wholesale Corporation...Ch. 14 - Balanced scorecard Divide responsibilities between...Ch. 14 - Ethics and professional conduct in business Sisel...Ch. 14 - Service department charges The Customer Service...Ch. 14 - Evaluating divisional performance The three...Ch. 14 - Evaluating divisional performance The three...Ch. 14 - Evaluating divisional performance The three...Ch. 14 - Evaluating divisional performance The three...Ch. 14 - Prob. 14.4.1CCh. 14 - Prob. 14.4.2CCh. 14 - Prob. 14.4.3CCh. 14 - Prob. 14.4.4CCh. 14 - Prob. 14.5.1CCh. 14 - Prob. 14.5.2CCh. 14 - Prob. 14.5.3CCh. 14 - Prob. 14.5.4CCh. 14 - Prob. 14.5.5CCh. 14 - Prob. 14.5.6C

Additional Business Textbook Solutions

Find more solutions based on key concepts
What are the three major parts of a T account?

College Accounting, Chapters 1-27

Why should policymakers think about incentives?

Principles of Microeconomics (MindTap Course List)

RESIDUAL DIVIDEND MODEL Buena Terra Corporation is reviewing its capital budget for the upcoming year. It has p...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

PAYBACK PERIOD Refer to Problem 11-1. What is the projects payback?

Fundamentals of Financial Management (MindTap Course List)

Explain how the two-, three-, and four-variance overhead analyses are related.

Cornerstones of Cost Management (Cornerstones Series)