Bhalla and LLp is an accounting firm in form of limited liability partnership with 20+ branches across India, in all major cities. B LLP offers to its customer services in accountancy, assurance, tax consultancy, business advisory services. Since the country is passing through economic slowdown, hence large numbers of business are entering into either internal/ external reconstruction; resultantly advisory services are in huge demands. The industry of accounting practices in India is mature, despite some of statues enforced recently. As part of performance analysis, at BS LLP; partners for each service domain collectively meet with top officers, on monthly basis. Following performance related data (belong to latest financial year) was considered in one of recent conducted partner meeting.
The
industry of accounting practices in India is mature, despite some of statues enforced recently. As part of performance analysis, at BS LLP; partners for each service domain collectively meet with top officers, on monthly basis. Following performance related data (belong to latest financial year) was considered in one of recent conducted partner meeting.
Particulars for BS LLP
Accounting Audits
Tax
Consultancy
Business
Advisory
Revenue (In Crores)
690 846 145 34
Growth of revenue over previous
year
2% 9% 3% 18%
Net profit ratio
5% 4.3% 6.7% 9.8%
Revenue (In Crores) of Accounting
Industry as whole
2,518 5,430 1,652 286
Remuneration Structure at BS LLP

Partners are getting fixed contractual payment apart from share in profit.

Non – Partners are getting fixed salary apart from variable pay depending upon rating from their immediate boss and peers. Client Relation Officer who is working parallel to marketing team, first time participated in monthly performance evaluation meeting and presented following data which contain rating from clients of BS LLP. It is decided that these rating will also be added in performance matrix/ table stated above–
Particulars for BS LLP
Accounting Audits
Tax
Consultancy
Business
Advisory
Customer Ratings (higher the better) 3.6 3.2 3.1 4.5 You are newly appointed management consultant with experience in non-finance
performance evaluation techniques. During discussion at lunch table, managing partner (Mr. Singh) explain the above process of performance analysis to you. You quoted about your past experience of implementing non-financial performance evaluation techniques, including Performance Prism, Balance Scorecard and Building Block. Building block sounds interesting to Mr. Singh, he asks you to:
list essential components of any performance management system. explain the above process of performance analysis to you. You quoted about your past experience of implementing non-financial performance evaluation techniques, including Performance Prism, Balance Scorecard and Building Block