Question 3 -Balanced scorecard (50 points) Recently a small consulting firm named NewCon started to operate their own business as a spinoff of OldCon-one of the large global consulting firms. Since the two firms are not in direct competition with each other (i.e., they compete for different customers in terms of size), OldCon allowed NewCon to take a few existing customers with them to start the new firm. This gives NewCon some leeway in the beginning. Nevertheless, the founders of NewCon know that unless they quickly grow in terms of customers and employees-while still keeping costs low - the firm will not survive in the highly competitive consulting market. Luckily, the founders of NewCon have good contacts with some local businesses that might serve as customers in the future. The plan for NewCon is to focus on local small and medium-sized enterprises (SMEs) - thereby staying away from the typical customers of the global consulting firms. However, consultants are often seen very skeptically in these firms, as the workforce of SMEs might think that money is better spent within the company instead of hiring expensive consultants that know little about their operations - a prejudice that is also shared by many SMEs managers. Therefore, NewCon wants to offer high-quality services in the fields of strategy, management and operations where the benefits to customers can be seen immediately. Once they have convinced management and employees about the positive impact of NewCon, follow-up projects within the same firm will follow. However, SMEs often have little budget available to hire consultants. This implies that NewCon's services need to be reasonably priced and, thus, costs need to be kept low. Additionally, the NewCon founders are convinced that the processes from initializing a project to fixing a contract and starting it, needs to be unbureaucratic, flexible and fast. Postponing projects is not feasible, because customers might ask competing consulting firms for advice. Therefore, much flexibility is needed from both the consultants and the administrative workers in the background that support the consultants with preparing the paperwork for the contracts and other administrative work. The initial investments for starting NewCom were limited. They are renting a small office in the center of the city and hired some administrative workers for their support. The founders already know that one of the challenges is to attract the right employees. First, consulting is a highly challenging and intensive job. Given the nature of the work, most consultants work rather independently without close monitoring. This means that they need to have employees who they can trust to be able to perform high-quality work independently. Second, the technical and social skills required are crucial and changing fast. Thus, training and knowledge sharing is essential for the firm in the long run. In this regard, the founders think that hiring several more experienced employees helps them succeed in the long run. Explain the potential (dis-) advantages of implementing a Balanced Scorecard for NewCon. Why should they or why should they not implement a Balanced Scorecard? Points: 10, word limit: 250. Your answer goes here. 2. Build a strategy map for NewCon and explain how this map can contribute to the overall success of the firm. Points: 10, word limit: 300. Based on your strategy map, develop a Balanced Scorecard for New Con that helps the founders to operate their business. Thereby, include the perspectives necessary for New Con, propose at least 2 specific measures per perspective, and discuss why you chose them. Points: 30, word limit: 450 . Your answer goes here