TJs Tax Services prepares tax returns for individual and corporate clients. As the company has gradually expanded to ten offices, the founder, Tommy Jacobs, has begun to feel as though he is losing control of operations. In response to this concern, he has decided to create a balanced scorecard and require each office to set annual targets for each of the measures on this scorecard. The strategy driving Tommys balanced scorecard design is: TJs Tax Services offers comprehensive tax solutions for individuals and corporations anywhere, anyway, and anytime. When developing his balanced scorecard, Tommy considers the following keys to success for his business: For offering tax solutions, our only real asset is our people. We must keep our employees highly motivated and we must hire the cream of the crop and train them well. Unsurprisingly, providing superior compensation relative to the industry average is a key factor for keeping employees motivated while career advancement and novel training opportunities are key factors for recruitment success. Hiring highly qualified people and keeping them energized ensures operational success, which in our business is a function of productivity, efficiency, and effectiveness. TJs Tax Services is always striving to improve on these three dimensions. Productivity boils down to employees being billable rather than idle. Efficiency relates to the time required to complete a tax return. Finally, effectiveness is critical to our business in the sense that we cannot tolerate errors. Our growth depends on acquiring new customers through word-of-mouth. We also believe that our customers value superior customer service as well as efficient tax return preparation. Delivering on these objectives ties back to employee morale in the sense that happy employees treat their clients with care and concern. While sales growth is obviously important to our future plans, growth without a corresponding increase in profitability is useless. Therefore, we understand that increasing our profit margin, which is a function of cost-efficiency, is also a priority. Given that payroll is our biggest expense, we must maintain an optimal balance between staffing levels and revenue generation; hence, employee productivity is key. B) TJs Tax Service recently launched a new training initiative to increase the skillset of employees. Tommy went to some trouble selecting the topics to be covered, quality of the instructor, classroom environment (i.e., desks, chairs, and lighting within the classroom), facilities (i.e., spaces beyond the classroom), class size, as well as the start time of the training session. Tommy is preparing to run a second training session but, before making the arrangements, he is hoping to leverage data assessing the effectiveness of the first training session to inform the arrangements for the second training session. The regression results are as follows: Training = 0 + 1 TopicCov + 2 InstructQual + 3 ClassEnv + 4 Facilities + 5 Size + 6 Time +

Answer both questions:

1.) How should Tommy interpret Topic Coverage in the regression? What should Tommy conclude?

2.) How should Tommy interpret Instructor Quality in the regression? What should Tommy conclude?