• Complaint #3. The reports "... do

• Complaint #3. The reports "... don't reflect the true performance of the mangers.”This suggests the need for some supplemental, non-financial reports on matters that theexisting reports do not address, such as quality problems, that will cause customers to defect, loss of market share, problems with on-time delivery of materials, quality of raw materials, and so forth.At another level, there would appear to be a need to rethink some fairly major decisions that havebeen made in the management control system. In particular, the following issues probably shouldbe on the table:• Responsibility centers. At the moment, Barrington has profit centers, and yet the DGMsdo not seem to accept any responsibility for revenue. If this is the case, the divisionsshould be established as standard expense centers. This would seem to be a mistake, however, as not only revenue, but also a fair amount of the assets used by the divisions wouldappear to be under the control of the DGMs. Thus, it probably makes sense to move in theopposite direction, and make the divisions into investment centers.• Behavioral issues. The above approach will require some considerable behavioral changes that also would seem destined to change the culture of the company itself. It appears that BPI needs to move from a somewhat sleepy corporation to a much more aggressive one. This may be more than Mr. Baum wants or can handle. If he makes the move in this direction, he quite likely will see some turnover among his DGMs, some of whom will not be able to perform well under the new approach.• Measurement issues. As a minimum, it would seem to be important for BPI to at leastmeasure each division's ROA to make sure that it is not a drain on the company. The evidence suggests that the plants are old, and no doubt will soon be in need of some sort of modernization. Unless there is a ROA mentality at the top of the company (i.e., Mr. Baum), the funds to undertake a modernization effort may not be available.