Case 3: (10 marks) (C3, D3)

Ahmad, Fatima, and Mohammad (AFM) is a law firm in Bahrain. The firm has had a very loose and relaxed management style that served it will in the past. However, more aggressive law firms have been winning new clients faster than AFM has. Thus, the management partner, Ali recently attended an ABA seminar on performance measurement in law firms, where he learned about the balanced scorecard. He thought it might be a good tool for AFM, one that would allow the firm to keep its culture yet still more aggressive seek new clients.

Ali identified the following strategic objectives that fit with the firm's core values and provide a framework for assessing progress toward the firm's goal:

Financial

a.Steadily increase the firm's revenues and profits.

Customer

a.Understand the firm's customers and their needs.

b.Value customer service over self-interest.

Internal Business Process

a.Encourage knowledge sharing among the legal staff.

b.Communicate with each other openly, honestly, and often.

c.Empower staff to make decisions that benefit clients.

Organizational Learning

a.Maintain an open and collaborative environment that attracts and retains the best legal staff.

b.Seek staff diversity.

Instructions:

1.Develop at least one measure for each of the strategic objective listed.

2.Explain how AFM can use this balanced scorecard to evaluate staff performance.

3.Should staff compensation be tied to the scorecard performance measures? Why or why not?