Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 54

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.
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.
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.