The Chief Finance Officer (CFO) of P plc has recently been e-mailed a copy of the 2016 published standard PAS 1919 Guide to management accounting principles, the first ever international management accounting standard. In the light of this new standard and recent criticisms from the board that there is a lack of strategic management accounting information available in the organisation, the CFO has asked you (as Management Accountant) to investigate the viability of using Balanced Scorecards within P plc.
Required:
Using the case study notes (see page 5) and research into Balanced Scorecards, write a report to the group CFO of P plc incorporating;
• A pilot Balanced Scorecard for the group that would help senior executives achieve the stated group strategic objectives, corporate responsibility aims and strategic developments. (30% marks)
• A pilot Balanced Scorecard for one of the operating divisions (Plumbing & Heating or Building Materials) that would help all levels of employee achieve divisional objectives that support group strategy, whilst maintaining goal congruence with the executive board and the board of directors. (30% marks)
• Based on appropriate academic literature and the context of the case study, critically evaluate the role of Balanced Scorecards as effective management tools within the existing organisational structure of P plc. (30% marks)
• Based on your findings, recommend if the group and each division should use Balanced Scorecards as part of future management control systems. (10% marks)
