John Donelan, the managing partner of the Dublin office of Donelan Consulting, saw the following diagram while visiting one of his clients, who owns a small manufacturing company.

Mr. Donelan commented to his client that he could see how to link increased training to improved production quality and how that would result in better customer satisfaction with the products. €œI wish I could apply this model to the consulting business, but I don€™t think it works in consulting. It works for you because you produce a tangible good. What we produce is advice, which is not very tangible.€
Mr. Donelan€™s client responded, €œYou produce good advice, which helps us produce good products.€
€œWell, that€™s good,€ Mr. Donelan replied, €œbut it doesn€™t help me to apply your model to my business so that we can provide even better advice.€ (And be more profitable, he thought to himself.) Using the balanced scorecard as a starting point, write a report to Mr. Donelan that explains how to implement the model shown in the diagram for Donelan Consulting. Be specific in stating how to measure the performance of each step in the sequence, from increased employee training to better financialresults.

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Increased Employee Training Improved Quality of Production Increased More Custome Satisfaction Repeat Customers Better Financial Results