Brian is the CEO of a bank. He has noticed that his staff have conflicting views as to the efficacy of the reward system operating at Big Red bank. In response to queries from the Board relating to the issue, he responded:

Incentives dont really motivate people. My staff all have balanced scorecards and they surely wouldnt have any reason to behave indifferently. We talk about things in management meetings and of course we get the tone from the top right. I cant understand why people dont do what is expected of them. Its just not that hard.

Brian was quick to refer to the balanced scorecard for his business banking executive, Mr Owen Moore. Owen has clear directives from the tone from the top. His focuses are of course: financial excellence, operational excellence, customer satisfaction, oh and of course risk and compliance.

Big Red has been covered by recent media reports with significant concerns relating to customer service and compliance matters. Upon request, an exemplar scorecard for the Group Executives was produced as below.

Design an alternative scorecard for the Group Executive role that would better capture the chosen strategy and explain why this particular approach was taken.

Metric Weighting Measure Financial Target 10% growth 5% cost reduction 50% Net Profit Operational 25% Customer 95% satisfaction. 15% Total Expenses Gallup Survey Regulatory Breaches Compliance No breaches. 10% Metric Weighting Measure Financial Target 10% growth 5% cost reduction 50% Net Profit Operational 25% Customer 95% satisfaction. 15% Total Expenses Gallup Survey Regulatory Breaches Compliance No breaches. 10%