Proceedings

the manager with the actual figures. This applies only to the measures where a
deviation is negative or undesirable by the owners, weighted according to their wish.
Finally, the bonus the manager recieves for his or her performance is determined
through comparison with the present bonus.
1
∑ ⎜
⎛
⎟
⎞
n x − x ÷ xp
× gi
=
⎝ n p
x
⎠
1
∑i
gi
~ 455 ~
(Formula nr. 2)
Balsam, S., Fernando, GD, and Tripathy, A. published in February 2011, in „The
impact of firm strategy on performance measures used in execution compensation”, a
study on the correlation between business strategy, performance measurement
indicators and compensation management. In most cases, according to the study,
management is rewarded based on sales, resulting in its concern for achieving
competitive advantages in the market by reducing the selling price or increase of
physical supply of products, business decisions that often affect the stability. Strategic
performance monitoring focused mainly on elements that are related to the level of
executive remuneration is made at the expense of accounting tools that would allow
identification of failure, which is built in an aggressive start of event risk.
CONCLUSIONS AND FURTHER RESEARCH
“Ignoranti, quem portum petat, nullus suus ventus est”( the wind is never favorable to
those who don't know where they are going), said Lucius Seneca. Any business pilot
needs a direction and a solid navigating system to give him much-needed guidance for
meeting targets. Through a balanced scorecard, with its four perspectives, we get a
“business compass,” which can be mounted on any entity. Adapting the system for the
needs of the IT sector presents a challenge, in both promoting change for the recipients,
as well as integrating its many features with the sectors’ requirements. Threats and
vulnerabilities that threaten the business present a focused point for the IT sector, so any
initiative that plans to develop a BSC must consider them before implementing it. The
measures found inside the perspectives must not be taken individually under analysis, as
they form a network of more or less interconnected aspects, and one success may mean
another failure. There may be hostility towards the system from the management, as a
“compass” can take away freedom or evaluate their deviations in a credible way, with
implications stretching to their pockets. That is why the life expectancy of the system
depends foremost on the persuasiveness of its promoters.
In this paper, we evaluated the opportunity and structure of a strategic planning and
management system, and laid the foundation for such a system based on empirical
experience and professional reasoning. The targets and initiatives in the balanced
scorecard were of no interest for the paper, as no IT company was willing to test the
system. The critics of the model, who consider that BSC fails to consider all relevant
parties, address the first obvious limitation. Moreover, recent trends may someday
remove the identified threats and vulnerabilities alltogether, making the current
system obsolete. The lack of direct feedback from spokespersons representing the
sector is also a factor that somewhat diminishes its overall utility and desirability.
We hope that the current results will encourage further studies and stimulate the
management consulting industry to develop or refine its models for the IT sector, in