Comtex Company provides cable and internet services in the Greater Boston area. There are many competitors that provide similar services. Comtex believes that the key to financial success is to offer a quality service at the lowest cost. Comtex currently spends a significant amount of hours on installation and post-installation support. This is one area that the company has targeted for cost reduction. Comtex’s balanced scorecard for 2018 follows.

 

Required: 

1. Was Comtex successful in implementing its strategy in 2018? Explain. 

2. Do you agree with Comtex’s decision to include measures of developing innovative services (research and development costs) in the internal-business-process perspective of the balanced scorecard? Explain briefly. 

3. Is there a cause-and-effect linkage between the measures in the internal-business-process perspective and the customer perspective? That is, would you add other measures to the internal-business-process perspective or the customer perspective? Why or why not? Explain briefly.

4. Why do you think Comtex included balanced scorecard measures relating to employee safety and community engagement? How well is the company doing on these measures?

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Target performance Actual Objectives Measures performance Financial perspective Increase shareholder value $2 400 400 Operating-income changes from productivity Operating-income changes from growth Increase in revenue from $800 000 $520 000 $250 000 $50 000 $24 000 new customer acquisition Customer perspective Increase customer satisfaction Positive customer survey 70% 65% responses New customers acquired through company sponsored community Increase customer acquisition 475 350 events Internal-business-process perspective Develop innovative services Research and 5% 6% development costs as a percentage of revenue Increase installation efficiency Installation time per 5 hours 4.5 hours customer Increase community involvement Number of new 12 15 programs with community organisations Number of employees injured in the workplace Decrease workplace injuries 7 Learning-and-growth perspective Increase employee competence Number of annual 10 11 training-hours per employee Number of leadership workshops offered Increase leadership skills 2 1 Percent of employees who have completed safety certification training Increase employee safety awareness 100% 95%