Your boss Andrea Woods has provided you with the excerpts below from the annual reports of two current clients seeking help building balanced Scorecards. She has asked you to choose one of the companies and use the excerpts in your portion of a workshop you are presenting with her that wil explain how the company's strategy determines the measures that are appropriate for its balanced scorecard. She suggests that you select balanced Scorecard measures for the company and link the scorecard measures in the four perspectives. Excerpt from Applied Pharmaceuticals' annual report: The keys to our business are consistent and timely new product introductions and manufa turing process integrity. The new product introduction side of the equation is a function research and development (R&D) yield (e.g., the number of marketable drug compounds creat relative to the total number of potential compounds pursued). We seek to optimize our R& yield and first-to-market capability by investing in state-of-the-art technology, hiring t highest possible percentage of the best and the brightest engineers that we pursue, a providing world-class training to those engineers. Manufacturing process integrity is all abo establishing world-class quality specifications and then relentlessly engaging in preventi and appraisal activities to minimize defect rates. Our customers must have an awareness of a respect for our brand image of being first to market and first in quality. If we deliver on ti pledge to our customers, then our financial goal of increasing our return on stockholders' equ should take care of itself. Excerpt from Destination Resorts International's annual report: Our business succeeds or fails based on the quality of the service that our front-line employees provide to customers. Therefore, it is imperative that we strive to maintain high employee morale and minimize employee turnover. In addition, it is critical that we train our employees to use technology to create one seamless worldwide experience for our repeat customers. Once an employee enters a customer preference (e.g., provide two extra pillows in the room, deliver fresh brewed coffee to the room at 8:00 A.M., etc.) into our database, our worldwide workforce strives to ensure that a customer will never need to repeat it at any of our destination resorts. If we properly train and retain a motivated workforce, we should see continuous improvement in our percentage of error-free repeat customer check-ins, the time taken to resolve customer complaints, and our independently assessed room cleanliness. This in turn should drive improvement in our customer retention, which is the key to meeting our revenue growth goals. Deliverables: Build a Balanced Scorecard for one of the two companies described. Provide at least 8 possible measurements using the framework from Exhibit 11-5 in the text book. Use arrows to show the causal links between the performance measures and show whether the performance measure should increase or decrease over time. You may create measures that may not be specifically mentioned in the chapter, but nonetheless make sense given the strategic goals of each company. Create your Balanced Scorecard in either Word or Excel or PowerPoint and
