AC312 Performance Measurement Strategy and Uncertainty Individual Assignment 2025 | LSE

Instructions to Candidates

Please download the AC312 Assessment Coversheet and Answers Submission file from Moodle if you have not already done so. Complete the AC312 Assessment Coversheet and use the file to provide your answer for this assessment.

You are also supplied with the Excel document “DATASET”. Please download the file from Moodle.

Once you have completed the file with your answer, change the file name and save it as PDF/Word using your five-digit candidate number (XXXXX) followed by the course code (ie, XXXXX-AC312.pdf).

There is a word limit of 2,250 words. In-text references, text-based figures and tables, appendices, list of works cited (eg, bibliography), and footnotes are included in the word count.

Please note that the assessment will be run through Turnitin plagiarism software.

Submit the PDF/Word file to Moodle by the published deadline.

In case of technical issues, you should contact accounting@lse.ac.uk with the subject heading: Assessment inquiry AC312.

Academic Integrity Statement:

By submitting this work, you acknowledge that all the work in this assessment is 100 per cent your own. You also acknowledge that you have NOT consulted or collaborated with any of your classmates or third parties during this assessment.

Take-home Individual Examination, Spring 2025

SOLUTIONS is a leading software company that specialises in providing technology solutions to businesses in a variety of industries. Its core business revolves around understanding client needs and delivering customised software products that improve operational efficiency and drive growth. Operating in a dynamic and competitive market, SOLUTIONS is committed to staying ahead of technological advances and industry trends, while offering efficient and well-tested products in more mature markets.

Senior management uses a Balanced Scorecard (BSC) approach to strategy development, measurement and assessment, and believes that “human capital” represents a critical success factor for the business. “Human capital” includes, for example:

• employees’ technical skills and industry knowledge, which enable the company to develop high-quality products and services;
• continuous learning and professional development, which ensure that the workforce remains capable of handling evolving challenges;
• and a positive organisational culture that values respect, collaboration, and inclusivity to attract and retain top talent.

A core assumption in the company’s strategic map is that a long-term commitment to a collaborative work culture not only strengthens internal operations but also enhances the ability to build strong, lasting relationships with clients. The company’s strategic mission states:

“In a competitive and uncertain business environment, we focus on delivering world-class software solutions. By leveraging diverse perspectives, we foster a culture where creativity thrives, and every team member feels valued. This approach helps us meet new challenges and remain at the forefront of industry innovation.”

Salespeople at SOLUTIONS are typically assigned a market, which consists of a territory, a set of products, or a type of client. Within their market, they are responsible for generating leads on potential new clients, making the initial contact, executing the initial sale, cross-selling other products, selling upgrades, and maintaining relationships. The company structure links sales managers to their subordinates; a manager typically oversees at least 10 subordinates.

Managers receive higher total compensation and enjoy greater prestige, career progression opportunities, job and pay security, and better work conditions than their subordinates.

In the competitive world of software sales, companies often face the challenge of identifying the best candidates for management positions. SOLUTIONS is currently considering three candidates for promotion to manager in one of its most important geographic areas: Lisa, Nina, or Tom. The new sales manager will be responsible for a team of approximately 50 people.

The senior management team at SOLUTIONS needs to make the promotion decision based on an evaluation of the candidate’s performance and potential, using the data available in the Excel document “DATASET”. This data has been extracted from a broader set of performance data.

HR (the human resources department) argues that the data provides good insight into each candidate’s strengths and should help senior management make their decision.

The data provides information on:

• Tenure (years): The length of time (years) the candidate has worked at SOLUTIONS.
• Product: The product market in which each salesperson is typically involved (see Appendix for a description of product markets).
• Revenue (£): This measure provides information on the average amount of revenue generated by each sale in which the salesperson was involved (in £’000), providing insight into buying patterns and the effectiveness of sales strategies. It can be used as a benchmark to compare the performance of different salespeople, teams, products, or periods. It can also be used to refine pricing models and promotional tactics to maximise revenue per sale.
• CSAT: The Customer Satisfaction Score (CSAT) measures client satisfaction based on their feedback. This system collects data through surveys and calculates a satisfaction score as a percentage, eg if 10 clients respond to the survey and 8 rate their experience as “Satisfied” (4) or “Very Satisfied” (5), the CSAT score is 80 per cent. For each sale, the salesperson typically interacts with several people on the client side. The CSAT is calculated for each sale based on the responses to the survey of the members of the client team.
• Ratings: An internal system gathers feedback on the candidates’ performance and skills from multiple sources, including peers. This system provides a view of an individual’s performance, strengths, and areas for improvement. The rating is based on a scale of 1 to 5, where 1 is “poor” and 5 is “excellent.”
• Comments: The internal feedback system also allows colleagues (peers) to send written comments that provide insights into the candidate’s performance and skills. HR suggests that the sample of comments, while generally all of a similar positive tone, can be used to describe the key qualities of each candidate.

The ID column is used by HR for identification purposes. Each ID number is randomly assigned to sales data and does not convey any performance-related information.

Required:

Write a memo to senior management addressing the following points:

• Using the case information and dataset, explain who should be promoted to manager and why.
• Building on the analysis developed in part (a), develop two key risk indicators (KRIs) that you believe would be useful to monitor key risks for SOLUTIONS.

Parts (a) and (b) carry equal weight. Draw on relevant course material and case examples to support your answer in all parts.

Additional information:

You must type your work into the Assessment Coversheet and Answers Submission file and upload it as one file via Moodle, either in Word or PDF. The exam questions require you to work on separate files (eg, the Excel dataset in part (a)). However, these files should not be submitted. You should take a screenshot of relevant parts of these files and include them as figures in the document that you submit.

If you choose to use the “Comments” textual data, you should include an appendix in your Answers Submission file that briefly explains the approach you used to analyse the textual data. This appendix will be included in the total word count.

Appendix

Product markets for SOLUTIONS

• Mature Products: These are well-established software solutions that have been in the market for a significant period. They have a stable client base and proven reliability. Mature products often undergo regular updates to maintain their relevance and performance. They are characterised by consistent demand and predictable revenue streams.
• High Quality Products: These software solutions are distinguished by their superior performance, reliability, and user experience. High-quality products often command premium pricing due to their advanced features and robust support. They are favoured by clients who prioritise excellence and are willing to invest in top-tier solutions.
• New Products: These are recently launched software solutions designed to address emerging needs or market gaps. New products are in the early stages of their lifecycle and are actively marketed to build awareness and attract initial clients. They often require aggressive promotion and education to gain traction.
• Innovative Products: These are cutting-edge software solutions that introduce new technologies or methodologies to the market. Innovative products are designed to disrupt traditional practices and offer unique value propositions. They are characterised by rapid development cycles and a focus on continuous improvement. Clients who seek the latest advancements and are open to experimentation are typically drawn to innovative products. For example, a product may be based on AI-driven task automation, real-time analytics, and a highly intuitive user interface to streamline workflows and boost productivity. Given its innovative features, users might encounter some bugs as SOLUTIONS continues to refine the product.