tailieunhanh - Ebook Horngren’s cost accounting - A managerial emphasis (16/E): Part 2

Part 2 book “Horngren’s cost accounting - A managerial emphasis” has contents: Strategy, balanced scorecard and strategic profitability analysis, pricing decisions and cost management, process costing, capital budgeting and cost analysis, management control systems, transfer pricing, and multinational considerations, and other contents. | Strategy, Balanced Scorecard, and Strategic Profitability Analysis 12 Olive Garden wants to know. Learning Objectives So do Barnes and Noble and PepsiCo. Even your local car dealer and transit authority are curious. They all want to know if they are meeting their goals. Many companies, like Barclays PLC in the United Kingdom, have successfully used the balanced scorecard approach to measure their progress. BarClayS turnS to the BalanCed SCoreCard The reputation of Barclays, the British multinational bank, took a beating in 2012 when company traders rigged a key interest rate called LIBOR, a benchmark rate that helps 1 Recognize which of two generic strategies a company is using 2 Understand what comprises reengineering 3 Understand the four perspectives of the balanced scorecard 4 Analyze changes in operating income to evaluate strategy 5 Identify unused capacity and how to manage it set global borrowing costs. When new CEO Antony Jenkins was tasked with turning the company around, he turned to the balanced scorecard to change the company’s performance goals and incentive structure. Introduced in 2014, Barclays’ balanced scorecard set out specific goals and metrics across the each of the company’s “5Cs”: customer and client, colleague, citizenship, conduct, and company. With a five-year goal of becoming the world’s “go-to” bank, the balanced scorecard became the instrument to ensuring Barclays was “helping people achieve their ambitions—in the right way.” Rather than focusing solely on short-term financial results, Barclays’ balanced scorecard aligned the company’s 5Cs with the broader perspectives of the balanced scorecard. Most notably, the learning and growth perspective incorporated Barclays’ conduct and citizenship goals, which included new purpose and value statements for the company. Jenkins even took the extraordinary step of tying the performance bonuses of managers to Barclays’ corporate ethics and citizenship goals,