Not only does the balanced scorecar

Not only does the balanced scorecard combine the advantages of different incentive pay plans, it helps employees understand the organization’s goals. By communicating the balanced scorecard to employees, the organization shows employees information about what its goals are and what it expects employees to accomplish. At ConocoPhillips, top executives have a scorecard that includes costs, health and safety, production, and resource replacement. In addition, the energy company has developed scorecards for operations level activities such as safety measures.31 For the example in Table 13.2, the organization indicates not only that the manager should meet the four performance objectives but also that it is especially concerned with effective service to co-op members, because almost half the incentive is based on this one target.