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Part (ii) requires evaluations of current and proposed (under balance scorecard) performance measures.
Current performance measure are
1-ROCE
2-Average cost to develop new drug.
3-Revenue growth.Proposed performance measures consist of balance score card (BSC) (as follows)
Financial and measure is ROCE
Customer and measure is Revenue growth
Internal and measure is Average cost to develop new drug
and
Learning and growth and measure is Training days provided to employees.I don’t understand when measure are exactly same (except the last one) then what difference it would create ? I mean we have to measure ROCE whether consider it under BSC or without BSC how difference it would make (except last one)??
You are asked to evaluate the consultant’s ideas. The answer says: “The suggested measures do not seem to deviate much from the existing measure” and then goes on to talk about the appropriateness of the suggested measures.
The requirement to ‘evaluate’ means you are to make a judgement. Look for pros and cons.
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