XTC Limited is a superannuation management company. XTC takes deposits from members of superannuation funds, invests those funds and pays out members' entitlements upon retirement. XTC is directly responsible to the trustee of the superannuation fund who, in turn, acts on behalf of the members' interests. This business is subject to frequent changes in legislation and increasing levels of scrutiny in a highly competitive market. Typically XTC has a five year management contract with the trustee of each superannuation fund it manages and there are many factors which XTC needs to manage well in order to retain the management contract. These factors include the contact the manager has with members and trustees as well as the management of the funds. In addition, to maintain XTC's position as preferred manager means that it needs to identify ways to continually improve in ways which add value to the trustee and its members (existing and future retirees).

Required:

(a)What is a balanced scorecard? What are the dimensions of a balanced scorecard?Why is it better than traditional measures of performance? (5 marks)

(b) Provide two examples of the types of measures that XTC Limited would use within each balanced scorecard dimension. (4 marks)

(c) What problems are likely to be associated with implementing a balanced scorecard? (3 marks)