Problem 12-38: Balanced scorecard, social performance: Rocky Plain Company provides cable and Internet services in the greater Denver area. There are many competitors that provide similar services. Rocky Plain believes that the key to financial success is to offer a quality service at the lowest cost. Rocky Plain currently spends a significant amount of hours on installation and post-installation support. This is one area that the company has targeted for cost reduction. Rocky Palins balanced scorecard for 2013 follows. Objectives Measures Target Actual Performance Performance Financial Perspective Increase shareholder value Operating-income changes from Productivity $1,200.00 $400,000 Operating-income changes from growth $260,000 $125,000 Increase in revenue from new $25,000 $12,000 Customer Perspective Increase customer acquisition Positive customer survey Response 70% 65% Increase customer acquisition New customers acquired through Company sponsored community Events 475 350 Internal-Business-Process Perspective Develop innovative services Research and development costs As a percentage of revenue 5% 6% Increase installation efficiency Installation time per customer 5 hours 4.5 hours Increase community involvement Number of new programs with Community organizations; 12 15 Decrease workplace injuries Number of employees injured in The workplace <3 7 Learning-and-Growth Perspective Increase employee competence Number of annual training-hours 10 11 Per employee Increase leadership skills Number of leadership workshops Offered 2 1 Increase employee safety Percent of employees who have Awareness completed safety certification Training 100% 100% 1. Was Rocky Plain successful in implementing its strategy in 2013? Explain 2. Do you agree with Rock's Plain's decision to include measures of developing innovative services (research and development costs) in the internal-business-process perspective of the balanced scorecard? Explain briefly. 3 Is there a cause-and effect linkage between the measures in the internal-business-process perspective and the customer perspective? That is, would you add other measures to the internal-business-process perspective? That is would you add other measures to the internal-business-process perspective or the customer perspective? Why or why not? Explain briefly? 4. Why do you think Rocky plain included balanced scorecard measures relating to employee safety and community engagement? How well is the company doing on these measures?