Chemico: Evaluating performance based on the Balanced Scorecard

For the past decade Chemico Inc. has been pursuing a successful strategy producing an innovative type of plastic that is replacing steel in the production of cars. Chemico has plants around the world, and demand continues to grow. Operations have recently commenced at three new plants in China. You have obtained performance data for the three plants in the form of a Balanced Scorecard (BSC) in which each manager’s performance is compared against the company’s targets. As the Financial Controller for Chemico it is time for you to evaluate the three plant managers and distribute the bonus pool between them.

► Students experience the difficulties in multi-measure performance evaluation. ► Strategy implementation evaluated through Balanced Scorecard measures. ► Color-coded strategy maps help predict future performance. ► Environmental performance is integrated into performance evaluation.