Ch12 Performance Measurement - Big Picture

Question 1

Process of performance measurement

Answer 1

1. Planning
   - objective
   - responsibility
   - measures
2. Analyzing
   - gather data and compile results
   - review results regularly
3. Action
   - revise measures
   - change performance

Question 2

Five key areas - For - profit performance measures

Answer 2

1. financial measures
   - revenue growth
   - productivity
   - asset utilization
   - overall financial health
2. customer measures
   - customer selection
   - customer acquisition
   - customer service and retention
   - customer growth
3. internal business process measures
   - supplier management
   - production management
   - distribution management
4. learning and growth measures
   - innovation
   - human capital (new skills / knowledge, key staff retention, team focus)
   - information capital (enhanced IT systems for superior results)
5. regulatory measures
   - environmental observance
   - legal compliance
   - community observance

Question 3

Five key areas - not-for profit performace measures

Answer 3

1. stakeholder measures
   - donor management (add or retain donors)
   - client value maximization
   - volunteer utilization
2. financial measures
   - adnub effucuebct abd effectiveness
   - program efficiency
   - fundraising efficiency and effectiveness
   - overall financial health
3. internal business process meausres
   - program management
   - process management
   - efficient administration
4. learning and growth meausres
   - social innovation
   - volunteer capital
   - employee capital
   - information capital
5. social impact measures
   - environmental observance
   - legal compliance
   - community observance