Question: Sandra Olson manages a restaurant that is part of the

Sandra Olson manages a restaurant that is part of the Eatwell Chain of restaurants popular in the Southwest. Eatwell has recently adopted a balanced scorecard for the entire company. As a result, the restaurant managers for each individual restaurant have a set of strategic goals, measurements, and rewards designed to motivate their employees to achieve the company’s overall goals.
Sandra Olson has implemented the balanced scorecard throughout each part of the restaurant she manages. The balanced scorecard measures that specifically apply to the Kitchen are primarily related to business process measures and learning and growth measures. In particular, the Kitchen employees supervised by Olson are evaluated on efficiency measures and learning and growth measures. The learning and growth measures are employee absenteeism, retention, and satisfaction. Operating efficiencies are measured by time from order placement to order completion, amount of waste and spoiled dinners, number of returned dinners, and productivity per employee. Olson obtains a monthly cash bonus if she can increase the learning and growth measures and reduce inefficiencies in the operations.
During the first year that the balanced scorecard was used at Eatwell, Olson did not earn a bonus for her restaurant. She has been particularly frustrated because whenever she reduces the time from order placement to order completion, spoiled dinners and returned dinners increase and employee satisfaction decreases.
Olson decides to hire your consulting firm, Knowitall Incorporated, to help evaluate the new balanced scorecard performance measurement and compensation scheme.

Choose a partner to round out your consulting team and write a memo to Sandra Olson that explains the problems she is encountering in the restaurant and, in particular, in the kitchen. In the report identify with bullet points the problems that she is having with the balanced scorecard system and provide suggestions to help remedy those problems.

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  • CreatedApril 17, 2014
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