Question 11 Following your successful consulting task at Kilgors where you assisted with the development ofa balanced scorecard, you have been asked to assist further. Six months after your last visit to the Wine Division of Kllgors, you have been contacted by the performance management manager Becky Tang. The senior management has just returned from a strategy planning weekend, which included a review of divisional strategies. A new set of strategic levers (provided below) has been developed for the Wine Division. In an upcoming management meeting, the balanced scorecard for the wine division is to be presented. In light of the changes to the strategic levers, Becky has sought your advice regarding some alternate measures. Moreover, the accounting staff have been told that the meeting will also include a discussion about the use of the scorecard as the foundation for a new bonus and incentive system. Kllgors Wine Division Strategic Levers Seek efficiency improvements across the value chain and drive outstanding financial performance Provide a safe workin environment, retain to talent; ractice cor orate social res onsibilit Foster growth through innovative product development Provide ONE relevant measure for each of the four perspectives of the Wine Division Balanced Scorecard. State: - the new measure, Question 4 (a) - how it will be calculated, and - an explanation as to why it should be part of the BSC for the Wine Division. A table is provided to guide the formatting of your response. (8 marks) Financial Perspective Measure Calculation Explanation 14|Pagc Customer Perspective Measure Calculation Explanation Internal Business Process Perspective Measure Explanation Learning and Growth Perspective Measure Calculation Explanation 15|Pagc The Board of Directors at Kilgors has been reviewing the compensation and reward system throughout the company. Helen from the accounting team believes if the scorecard is to have maximum impact, the bonus system should be based on scorecard performance for divisional managers through an annual performance appraisal process. Question 4 (b) i. Outline some of the key challenges associated with using BSC performance as the basis of awarding bonuses throughout the organization? ii. Would you recommend Kllgors management goes ahead and uses the BSC performance as the basis for bonuses through an annual performance appraisal process? Briefly explain. (7 marks)