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Required information [The following information applies to the questions displayed below.] Susan Lopez, a consultant with Deloitte & Young, has just begun an engagement at

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[The following information applies to the questions displayed below.] Susan Lopez, a consultant with Deloitte & Young, has just begun an engagement at Four Corners Airlines, which is based in Santa Fe, New Mexico. The company has fallen on hard times of late despite record profits for the rest of the airline industry. Management is somewhat set in its ways and could probably use some new blood, as the most recent hire to the firms executive team was 12 years ago. In Lopezs first meeting with the team, the airlines chief executive officer commented that all that mattered in this industry were load factorsthe percentage of seats sold on scheduled flights. If load factors were adequate, everything else would take care of itself. Lopez noted that while this measure was important, other, broader facets of operation were significant as well. She asked if any of the management team had heard of the balanced scorecard, and received dead silence as a response. Based on her experiences with other engagements, including two that involved airlines, Lopez was convinced that the balanced scorecard could provide benefits in helping to solve the airlines woes. After a presentation about the philosophy of the balanced scorecard, Four Corners Airlines management team accepted her idea, feeling that a shift in operating philosophy was needed for survival.

3. Identify the type of measure used to evaluate the key elements below. (Hint: There are 6 financial measurements, 6 customer-satisfaction measures, 8 internal business process measures, and 5 Learning and growth measures.)

table

Aircraft turnaround time between flights

Average age of aircraft in fleet

Average trip length (in miles)

Average wait time when calling reservations center

Cost per meal served

Earnings per share

Employee satisfaction scores

Employee training programs

Employee turnover

Enhancements to product line (new class of service)

Load factors

Market shareNet income

New unique features of frequent-flier club

Number of aircraft in fleet

Number of bags lostNumber of cities/new cities served

Number of passenger complaints

Operating expenses per seat mile

Passenger revenue per seat mile

Percentage of on-time arrivals

Percentage of on-time departures

Percentage of tickets sold through travel agents, reservation agents, and the Internet

Response time for resolving customer problems

Revenue growth

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