Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 57

The Balanced Scorecard; Strategy Map; Banking Carlos Aguilar, a CMA and consultant in Los Angeles, has been asked to help develop a balanced scorecard for a local medium-sized commercial bank. Carlos is familiar with the area around the bank and he knows that the bank has succeeded in part because of good community ties and customer service. The bank managers also realize that employee morale is an important factor in the success of the bank.

Required

1. Carlos has asked you to help him in the initial phases of this project. Specifically, he has asked you to identify the balanced scorecard perspectives you would use for this bank, and a short list of four to five critical success factors that you would include in each perspective.

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2. Also, he is interested in knowing how the concept of a strategy map might be applicable for this client. Prepare a brief report for Carlos.

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3. Explain how the balanced scorecard for a bank could be linked to an incentive compensation plan for the managers and employees of the bank.

Step 1 of 6

Value chain

Value chain is the business processes which begins from undertaking research on goods, designing the goods, producing the goods, marketing goods, distributing of goods to the customer and finally providing after sale service to the customers. Thus, value chain is the complete business processes of how the goods are produced and sold to the final customers.