Balanced Scorecard and Decision-Making in Harwood Medical

School: Delaware State University - Course: FINANCE 603 - Subject: Accounting

Jared Bailey Accounting for Decision-Making Harwood Medical InstrumentsCase 5 Based just outside of Birmingham, England, Harwood Medical Instruments PLC (HMI) manufactured specialty medical instruments and sold them in market niches that were becoming more competitive and price-sensitive as a result of pressures to cut health care costs. There were nine divisions within HMI, each headed by a general manager. The Balanced Scorecards (BSC) method serves as the foundation for this concept. Robert Kaplan and David Norton came up with BSC to get businesses to stop focusing solely on financial data. Focusing on financial data and developing the skills and intangible assets necessary for long-term growth is the goal. By translating a company's strategy into specific measures for each category, this is accomplished. Most of the time, businesses use BSC as a management tool to: Indicators of a Balanced Scorecard include customer acquisition, satisfaction, and retention, timeliness, productivity, quality, team performance, and competence, among other things. Clarify and communicate strategy; align individual and unit goals with strategy; and receive feedback for continuous strategy improvement. Bonuses Earned by Each Manager for Each 6-months period and FTYE 2010: Surgical InstrumentsDivisionUltrasound Diagnostic Equipment Division FTYE 2010FTYE 2010

particulars For the 2ndHalfFor the 1stHalfFor the 2ndHalfFor the 1st Half Operating Profit$3420$4060$4620$4400 Base Bonus$34.20$40.60$46.20$44.00 On-Time Deliveries 97.3%98.2%95.4%94.6% Adjusted$2000$2000-- Sales Returns$291$289$450$420 % of Sales1.021.001.070.95 Adjusted($2.50)$5000($15)$5000 Patent Acquisition 4801 Adjusted$4000$8000-$1000 Scrap & Rework Cost $45.00$39.70$51.10$28.20 1% of Operating Profit $34.20$40.60$46.20$44.00 Adjusted($10.80)-($4.90)-