Refer to Exercise 13-10. Suppose that Mandy communicates the following weights to her CEO:

• Perspective: Financial, 40%; Customer, 20%; Process, 20%; Learning and Growth, 20%

• Financial objectives: Profits, 50%; Revenues, 25%; Costs, 25%

• Customer objectives: Customer satisfaction, 60%; Market share, 40%

• Process objectives: Defects decrease, 40%; Supplier selection, 30%; Redesign process, 30%

• Learning and growth objective: Training, 100%

Mandy next sets up a bonus pool of $200,000 and announces that the weighting scheme just described will be used to determine the amount of potential bonus for each perspective and each objective.

Required:

1. Calculate the potential bonus for each perspective and objective.

2. Describe how Mandy might award actual bonuses so that her managers will be encouraged to implement the Balanced Scorecard.

3. What are some other ways that Mandy can use to encourage alignment with the company’s strategic objectives (other than incentive compensation)?