Develop at least one measure for each of the strategic objectives listed.

Strategy and Control Systems Design

Redhill Pty Ltd is a local firm specialising in custom design, engineering and powder coating of metal products. Management is concerned that the quality of their outputs has deteriorated over the last few years, and this has had a knock-on effect on revenues and profits. The managers have determined that a quality improvement strategy is critical and think that implementing a balanced scorecard might be the most appropriate way of managing performance.

Management has identified the following strategic objectives that they believe will achieve their goal:

Financial

• Steadily increase the firm’s revenues and profits.

Customer

• Understand the firm’s customers and their needs.
• Increase word of mouth marketing.

Internal Business Process

• Encourage knowledge sharing among the engineering staff.
• Ensure the least use of materials without compromising customer specifications.

Organisational Learning

• Maintain an open and collaborative environment that attracts and retains highly skilled engineering staff.
• Seek a culture of innovation.

Required:

1. Develop at least one measure for each of the strategic objectives listed.
2. Explain how Redhill Pty Ltd can use this balanced scorecard to evaluate staff performance.
3. Should staff compensation be tied to the scorecard performance measures? Why or why not?

Requirements: to   |   .doc file