Performance Evaluation of ARO Community Services

Chichi Everhart

04/12/2011

Table of content Executive summary Part I Background Balanced Scorecard Evaluation:

Financial perspective ARO Financial perspective Customer perspective ARO Customer perspective Internal Business Perspective ARO Community Internal Business Perspective Learning and Growth Perspective ARO Community Services Learning and Growth Perspective. ARO Community Services Significant Costs. ARO Community Services’ Non-Financial Measures Part II : A Significant Problem in ARO Community Services Background of the problem in ARO Community Services Financial problem Potential solution (decision alternative) to the ARO problem Table: Payoff for ARO Community Services Financial Project Expenses ( Payoff in $ Thousands) Decision Tree for ARO Community Services Financial Project Expenses Part III: Potential biases of ARO Community Services Recommendation Reference

Executive summary

Background

Brief History of ARO Community Services

Financial perspective

ARO Financial perspective

Customer perspective

ARO Customer perspective

Internal Business Perspective

ARO Community Internal Business Perspective

Learning and Growth Perspective

ARO Community Services Learning and Growth Perspective

ARO Community Services Significant Costs.

ARO Community Services’ Non-Financial Measures

Part II

A Significant Problem in ARO Community Services

Background of the problem in ARO Community Services

Financial problem

Potential solution (decision alternative) to the ARO problem

Table: Payoff for ARO Community Services Financial Project Expenses (Payoff in $ Thousands) Demand Scenario (State of nature)

Decision Alternative(di)

Worst case(S1) Base case(S2) Best case(S3)

Small expense on investment

500 600 760

Medium expense on marketing campaign

-350 750 900

Large expense on annual budget

-500 680 1090

Decision Tree for ARO Community Services Financial Project Expenses (Payoff in $ Thousands) Worst Case 500 2 Base Case 600 Best Case 760

Worst Case - 350 Base Case 1 3 750 Best Case 900

Worst Case - 500

Base Case 4 680

Best Case 1090

Part III

Potential Biases in ARO Community Services:

1) Hindsight bias2) Fore sight bias

How these biases color the potential solutions in ARO Community Services

The decision alternative that will be most affected by this biases

Recommendation

Reference:Jackson et al (2008). Managerial Accounting and Statistics. Mason, OH, Cengage Learning.

The American Heritage Dictionary, Third Edition.

Agan et al (1994).Basic and Applied Social Psychology.15(4), 439-449.

Bernadette Abasolo, RN, BSN. Director of professional Services. www. arocomm.com.