Water Solutions Pty Ltd operates three divisions that supply products and services relating to water. The two older divisions produce and supply water hardware such as pumps, pipes and tanks. The new division is a service division. It supplies consultancy services to government and large corporations on the preservation and best use of water resources.
Water Solutions Pty Ltd uses the EVA to measure divisional performance. Its results over the last year are as follows.

In the management performance meeting, some concern was expressed about the use of the EVA as the sole measure for consultancy services performance. It was agreed that this was a growth area, but that sales growth had slowed dramatically over the last year. Investigation revealed that some competitor companies had managed to sustain their initial growth through the current year, in contrast to the slowing sales of Water Solutions Pty Ltd. It was concluded that the performance of the consultancy services division was poor in the current growth market.

Required
a. Consider whether the use of the EVA as the sole performance measure is suitable in the current circumstances.
b. Consider whether the introduction of a balanced scorecard could facilitate a focus on the growth strategy.