1. Respond to the CEO by explaining how the Balanced Scorecard can serve a useful purpose in assisting Pioneer Company in assessing progress towards its objectives.

Managers in Pioneer Company has realized the factors which has impact performance           Management. But they rarely take into consideration how to align these measurements into the company’s strategy. One of the pitfalls with accounting is the financial costs of the incomplete chains of action beyond the time of measurement. For instant, in an accounting system of performance measures ignores the company’s intangible assets like ongoing research, human resources and the goodwill which the company was build. It will be worse if the company is in a situation in which it feels forced to purse short-term financial results rather than the company’s long-term goals. (Kaplan, 1984). Managers may perhaps be reluctant to make investments even if the investments are in financial interest of the company, if the new investments are detrimental to short-term return on investment, owing to asset valuation and depreciation policy. In turn, this may lead low efficiency, poor customer loyalty and satisfaction may lead company being vulnerable to the competitor treats. All these indicate that accounting systems are deficient decision-making and assessment tool.
Effective measurements must be a crucial part of management process. In recognition to this, Balanced Scorecard was introduced in 1992, to deliver a framework for selecting various   performance measures which is focused on the critical aspect of the organization. It also offers tool for organizing strategic objectives into customer, internal process, learning and growth perspectives and financial perspective. By integrating these four perspective, BSC is anticipated to serve a full purpose to the company. (Refer the exhibit “Translating Vision and Strategy: Four Perspectives.”) Additionally, by understanding the cross-functional relationships that can...