Creating Incentives for Change by Keeping Score.

1. Research and discuss the Balanced Scorecard (BSC), be sure to address elements that lead to a successful BSC, what helps or deters employees from buying into the BSC, etc Use this section to teach the reader about what a BSC is in order to apply this knowledge to the specifics of the case study.
2. Discuss why Elite Engineering has been unsuccessful in achieving the desired change? Evaluate the need for goal congruence and discuss what role incentives play in motivating the engineers behavior? Describe how the current incentives create agency costs, i.e., the cost of divergent self-interested behavior.
3. Evaluate the proposed BSC from the Case Study as follows:
   1. Consider your discussion in requirement 1 above of what makes a successful BSC, how well does the draft scorecard meet this criteria?
   2. Discuss any major shortcomings that you see with the proposed BSC. What suggestions for improvement would you make?

Table 1 Initial Scorecard for Elite Engineering Customer Measures Internal Business Process Measures Learning & Growth Innovation Measures Financial Measures Customer Satisfaction Ratings at Project Closings Number of Referrals from Existing Clients Percentage of Revenue from New Clients Number of New Clients for Industrial Consulting Billability Number of Project Reviews Performed per Business Team % of Projects with Cross-Disciplinary Collaboration $ of Project Write-off from Customer Complaints Employee Turnover Revenue Generated per Business Team Number of Professional Development/Continuing Education Hours Working Capital Cash Flows from Operations Total Revenue Revenue Growth