In rts thirteen year of operations, Mount Drake Software is reviewing the methods it has used to evaluate its profit SBUs. Mount Drake has six product divisions, each of which is a profit SBU, and each markets specialized software products to specific customer groups. For example, one unit markets software systems to dental practices, and another provides software for real estate management firms. A critical factor in Mount Drake's success is the commitment and competence of its systems development and programming staff. While there is a relatively high turnover for these employees. Mount Drake has managed to retain the very best and to attract the very best. In recent months, as their business has grown, and as the software industry generally has grown significantly, it has become more and more difficult for Mount Drake to attract and to retain the best staff.

Mount Drake is looking for ways to become more competitive in attracting and retaining these employees. One idea is to increase employee benefits by adding training opportunities, additional paid vacation, stock investment programs, and improved health insurance.

The cost of some of these additional benefits could be traced directly to the divisions, while the cost of other benefits (such as improved group health coverage and company-wide training programs) could not be directly traced to the divisions.

REQUIRED:

How should Mount Drake handle employee benefits within its current performance measurement system? Should Mount Drake change the performance measurement system, and if so, how should it be changed?