Many of the benefits of a balanced scorecard approach are evident in the improved operations at United
Question:
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, 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, he recognized that things had to change. He implemented an incentive program that allows all of United’s 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.” After instituting this program, the company’s on-time departures were among the best, its customer complaints were reduced considerably, and the number of customers who said that they would fly United again was at its highest level ever. Which of the perspectives of a balanced scorecard were the focus of United’s CEO? Explain your answer.