Tutorial on Balanced Scorecard

WMK Services prepares accounting report for individual and corporate clients. As the company has
gradually expanded their office, the director Mr. Yong has begun to realize that he is losing control of
operations. In response to this concern, he has decided to implement a performance measures and
hoping that it could help to control the current operations and facilitate his growth plan in three years’
time. Mr. Yong describe the key success of their business are mostly driven from the below aspect:

“The main real asset of the company is the manpower. We must keep our employees highly motivated
and interestingly, employee morale and recruiting success are both driven by the same two factors i.e.
compensation and career training and skills with certificate. In other words, providing superior
compensation relative to the industry average in addition to fast-track career advancement
opportunities keeps morale high and makes us a very attractive place to work. It drives a high rate of job
offer acceptance relative to job offers tendered. With this progress and achievements, more clients are
expected to come.

Hiring highly certified people and keeping them motivated ensures organizational success who then
contribute better productivity, efficiency and effectiveness. Productivity can be determined by the
number of billed/invoice being issued rather than being idle. Efficiency related to the time required in
completing the client’s accounts. Finally, effectiveness is very crucial to our business in minimizing the
errors. Completing the client’s account is meaningless if the accounts contains errors.

Our growth plan aims to attract more customers through mouth-to-mouth from satisfied repeat
customers. we believe that our customers come back again as they value error-free, timely and faithful
account presentation. This is what we called service quality and it all ties back to employee morale
where a happy employee treats their client with care and concern.

While sales growth is very important to future plan however, it become meaningless if it does not
contribute any increase in profit. Therefore, cost-efficiency also need to emphasis. Payroll is one of the
biggest expenses incurred in our company. In order to compensate this cost, the employee themselves
needs to be more productive in billing the customers in order to increase sales”.
Required:

The director had requested you as the company’s’ managers to prepare the report on the performance
measure as he initially planned to do. The report should include the following points:

1. Create a balanced scorecard for WMK Services.

2. Identify and link the company’s scorecard measures using the framework on a cause-and-effect basis.
3. Indicate whether each measure is expected to increase or decrease.
4. Determine whether this performance measurement is a success or not by presenting the benefits and
the limitation in this performance measurement.
Include any recommendation or factors that could be improved in this performance measurement