Explain to Fisher & Paykel's management about the cause-and-effect linkages between the different measures in their Balanced Scorecard. Include in your memo an analysis of the problems between the Internal Business Perspective and the Customer Perspective. Do you think employee satisfaction and the development of new products are critical for Fisher & Paykel to implement its strategy? Why or why not?

Fisher & Paykel manufactures medical equipment in its facility in Auckland which has high fixed costs. The market for medical equipment is competitive so Fisher & Paykel's strategy is to differentiate their products by providing consumers with unique features. Fisher & Paykel uses innovation, and lean manufacturing techniques to gain a competitive advantage. In the 2020/21 fiscal year, Fisher & Paykel planned to achieve their strategy by improving yields and reducing defects in its manufacturing operations. Fisher & Paykel's balanced scorecard for the just completed fiscal year 2021 as well as its performance in 2020 follows: Objectives Measures Actual 2020 Target 2021 Actual 2021 Performance Performance Performance Financial Perspective Increase shareholder Operating Income $30,000,000 $13,000,000 $37,000,000 value changes from productivity improvements Operating Income $48,000,000 $100,000,000 $200,000,000 changes from growth C'ustomer Perspective Increase market Market share in non- 50% 55% 60% share invasive ventilators Internal Business + Perspective Improve First Pass Yield 99.1% 99.2% 98.8% manufacturing measure of good units quality with no rework) Reduce delivery Order delivery time 27 days 24 days 40 days time to customers Learning and Growth Perspective Develop process Percentage of employees skills trained in process quality 89% 90% 85% management Enhance information Percentage of system capabilities manufacturing processes 84% 85% 83% with real time feedback Fisher & Paykel has also given you so + er financial information. Fisher & Paykel Actual 2019 Actual 2020 Target 2021 Actual 2021 Data Performance Performance Performance Performance Operating Reverie 1,070,000,000 $1,263,000,000 $1,500,000,000 $1,971,000,000 Net Assets $913,000,000 $973,000,000 $1,200,000,000 |$1,520,000,000 Operating Income $209,000,000 $287,000,000 $400,000,000 $524,000,000