Creating Incentives for Change by Keeping Score

This case, based on an actual situation, describes the efforts of Elite Engineering, an engineering consulting firm, to involve more of the engineers and technical staff in business development in addition to their regular billable work. Specifically, the intent is to shift away from the traditional base of clients and increase the revenue stream from industrial consulting. Previous efforts to achieve this shift have failed. In the current situation, the chief operating officer (COO) plans to change the company’s existing bonus system to create goal congruence between individuals and the organization. He believes that the engineers’ current incentives need revision in order to change how their time is spent. He wants to use a balanced scorecard approach that is aligned with the company’s five year goals. The case concludes with the COO sharing a draft scorecard with engineers for their reaction.