This case discusses in the initiation of the balanced scorecard in World Class Lighting. The regions which were to be implemented with this approach were most of the regions in China and Asia. The aim was to inculcate a new tool for the management of the business. The perspectives of customer, growth and learning, process, and financial are the components of the balanced scorecard. The system worked for a while, but the issues arose because of the inefficiency of the implementation process. The benefits that were predicted were not derived out of the system. The target setting had measures that could not be quantified and some indicators were measured in access to what should have been the measurement. In 2009, the CEO of the company was presented the options to terminate the use of the balanced scorecard.
1. What was the value proposition for World-class to continue the balanced scorecard, i.e., what benefits were obtainable?
2. Assess and evaluate the scorecard measures in terms of economics of information properties, i.e., reliability, verifiability, and sensitivity. Relate any deficiencies noted to the problems World-class experienced with the scorecard.