Babson Case Number: BAB043 | Length: 13 Pages

Abstract

Traces the development of the balanced scorecard for a fast-growing biotech company in transition. Reports how the new CEO embraces the scorecard concept early to explain and measure the progress of his strategic objectives to the various stakeholders. Subsequently traces the rollout and development of the scorecards as they cascade throughout the organization. Finally, the North American CFO confronts the problem of relating scorecard targets to individual performance goals of his finance team. Teaching Purpose: To explore the difficulty of drilling down the balanced scorecard to a specific functional area where only one relevant corporate key success factor is considered. How many elements of the scorecard do you need to have balance? The issue is further complicated by the matrix organizational structure where the function, finance, and line of business, therapeutic areas, have a shared responsibility for achieving a scorecard target--accounts receivable collections.