Jessica is a recent graduate of Brenau Universitys business school entrepreneurship program. The business plan that she created before she graduated was for a business developing websites for individuals and commercial businesses. Friends and family provided funding for the start-up, and she has been in business for the last two and a half years.

Jessica had learned about the balanced scorecard in her accounting classes and has been applying some of the techniques. Her vision for this business is to provide clients with high quality websites that receive a relatively high numbers of hits. Recently, word-of mouth advertising had led to more requests for websites with creative animated graphics. As part of her balanced scorecard, she tracked the following measures over the last two years for her individual clients:

20x1 20x2

Average revenue per individual client $2,000 $1,500

Average time from start to finish (business days) 10 days 13 days

Average site ranking on top two search engines 15 21

Total revenue $80,000 $78,000

Total labor cost $20,000 $22,000

Utilities cost (electricity and phone) $2,100 $2,400

Number of individual clients 40 52

Employee turnover 1 0

a. Classify each performance measure according to one of the four balanced scorecard perspectives. Explain your reasoning.

b. Analyze the change in each performance measure from 20X1 to 20X2. Give one possible reason for the change.