A. Evaluate both the design of the Diagnostic Product Corporation Performance Bonus Program for U.S.-based field service engineers (Field Service Engineers) as it currently exists and the way in which the Program is being implemented.

B. What was the goal in establishing this new incentive program? Explain.

C. What are the desired behaviors for Field Service Engineers? Explain.

D. Does the program include the right measures, and are they weighted properly? (answer each of the sub-questions with a detailed explanation)

• Are the measures aligned with the corporate direction?
• Are the measures balanced?
• Why include the teamwork factor, which is not highly controllable by individual Field Service Engineers?
• Is there too much emphasis on performing quantities of preventative maintenance (PM) and not enough on non-PM activities?
• Do Field Service Engineers have enough incentive to control the costs of their activities?
• Are differences in customer mix and the effects of uncontrollable factors worrisome?
• Can the measures be "gamed? Can Diagnostic Product Corporation managers detect and control these games?
• Can the evaluations in the administrative area be made less subjective, or is subjectivity not a problem?
• Are the problems with the direct measurement of customer satisfaction significant?
• What are the drivers of customer satisfaction?
• The best Field Service Engineers are qualified on the 2500 and SMS, but they are not rewarded for this work. Is this a flaw in the system?

E. Is the reward portion of the program well designed? Explain.

F. Do the benefits of this program exceed its costs? Explain.

G. Was the deliberate, gradual implementation approach wise? Explain.

H. This is a system designed for U.S.-based Field Service Engineers. Would this same system work for non U.S.-based Field Service Engineers? Explain.

H. What changes to their program would you suggest, if any? Explain.

I. Instead of using a results-control system like the Performance Bonus Program could Diagnostic Product Corporation control its U.S.-based Field Service Engineers effectively using only action and/or personnel/cultural controls? If so, what would such a system look like? If not, why not? Explain.