EXERCISE 11-11 Create a balanced scorecard for Ariel Tax services

EXERCISE 11-11 Create a balanced scorecard for Ariel Tax services

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Solution: 1. Revenue per employee Sales Profit margin Fina ncial hours tax return Average time needed to prepare a return Percentage of job offers accepted Employee morale Amount of compensation paid above industry average Average number of years to be promoted Customer I Internal Business Processes Lear ning and Growth + + + Customer satisfaction with effectiveness Customer satisfaction with efficiency Customer satisfaction with service quality Number of new customers acquired + + + + + + +
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2. The hypotheses underlying the balanced scorecard are indicated by the arrows in the diagram. Reading from the bottom of the balanced scorecard, the hypotheses are: ° If the amount of compensation paid above the industry average increases, then the percentage of job offers accepted and the level of employee morale will increase. ° If the average number of years to be promoted decreases, then the percentage of job offers accepted and the level of employee morale will increase. ° If the percentage of job offers accepted increases, then the ratio of billable hours to total hours should increase while the average number of errors per tax return and the average time needed to prepare a return should decrease.
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This note was uploaded on 08/07/2011 for the course ACCT 300 taught by Professor Professormiller during the Spring '10 term at Kaplan University.

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EXERCISE 11-11 Create a balanced scorecard for Ariel Tax services

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