Accounting Across the Organization

Accounting Across the Organization - considerably, and its...

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  Accounting Across the Organization PhotoDisc, Inc./Getty Images. Many of the benefits of a balanced scorecard approach are evident in the improved operations at  United Airlines . At the time it filed for bankruptcy in 2002, United had a reputation for some of the  worst service in the airline business. But when Glenn Tilton took over as United's Chief Executive  Officer in September 2002, he recognized that things had to change. One thing he did was to implement an incentive program that allows all of United's 63,000  employees to earn a bonus of 2.5% or more of their wages if the company “exceeds its goals for on- time flight departures and for customer intent to fly United again.” Since instituting this program the  company's on-time departures are among the best, its customer complaints have been reduced 
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Unformatted text preview: considerably, and its number of customers who say that they would fly United again is at its highest level ever. While none of these things guarantees that United will survive, these improvements certainly increase its chances. Which of the perspectives of a balanced scorecard were the focus of United's CEO? Answer: Improving on-time flight departures is an objective within the internal process perspective. Customer intent to fly United again is an objective within the customer perspective. Source: Susan Carey, Friendlier Skies: In Bankruptcy, United Airlines Forges a Path to Better Service, Wall Street Journal, June 15, 2004....
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