Discussion – Balanced Scorecard

Suppose a company at which executives were rewarded for meeting targets based only on profits and stock price switches to a balanced scorecard that adds measures for customer satisfaction, employee engagement, employee diversity, and ethical conduct.

How, if at all, would you expect executive performance to change in response to the new control system? How, if at all, would you expect the company’s performance to change?

(Note: The balanced scorecard contains four major perspectives.)