Question 4

Abigail, Daves & Co. (AD & Co.) is a law firm in Malaysia. The firm has had intense competition in recent years since more aggressive law firms have been winning new clients faster than AD & Co. has. The managing partner, Dahlia Dave, recently attended a seminar on performance measurement and control in law firms, where she learned about the Balanced Scorecard. She thinks that this performance measurement might be a good tool for AD & Co., one that would allow the firm to keep its present culture yet more aggressively looking for new clients.

Dahlia Dave has identified the following strategic objectives that fit the firms core values and provides a framework for assessing progress towards the firms goals: -

Perspective Strategic Objectives

Financial -------------------> (1) Steadily increase the firms revenue and profits.

Customer -------------------> (1) Understand the firms customers and their needs.

Internal Business

Process ---------------------> (1) Encourage knowledge sharing among legal staff.

2. Communicate with each other openly, honestly, and regularly.
3. Allow staff to make decisions that benefit clients.

Learning and Growth -----> (1) Maintain an open and collaborative environment that

attracts and retains the best legal staff.

(2) Seek staff diversity.

Required:

1. Recommend ONE (1) performance measure for each of the strategic objectives listed under each perspective. (10.5 marks)

2. Discuss TWO (2) benefits of tying staff rewards to the Balanced Scorecard performance measures. Discuss also ONE (1) danger associated to such a

measurement tool if it is not designed with care and is used in measuring and controlling performance. (7.5 marks)

3. Explain TWO (2) points that make the Balanced Scorecard more strategic as compared to other traditional forms of performance management tools. (7 marks)