Chapter 9 - Control Measures Flashcards

1
Q

Performance Measurement

A

Use of statistical evidence to determine progress towards specific objective

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2
Q

Balanced Scorecard

(Kaplan + Norton)

A

Demonstrates the linkages between getting things right and being sucessful

  • Financial - successful financial performance
  • Customer - appear efficient and reliable to our cmrs
  • Internal Processes - what we must do well to satisfy our stakeholders and cmrs
  • Innovation + Learning - what we need to achieve our vision
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3
Q

3 basic types of Benchmarking (Seber)

A
  • Internal - another department
  • Competitor
  • Process/Activity - similar process in non-competitor

* Benchmarking doesn’t identify reasons because doesn’t compare competences directly

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4
Q

Stretch Targets

A
  • Difficult to achieve
  • Demotivating
  • Take more risks / reduce quality
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5
Q

Poor design of targets

(Berry, Broadbent, Otley)

A
  • Sub Optimisation - focus on some targets, neglect others
  • Myopia - short term target over long term goals
  • Ossification - unwilling to change inappropriate measure
  • Gaming - fix results e.g. underachieve for easier target
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6
Q

Financial Targets

A
  • Expected by employees
  • Cheap to monitor
  • Focus on resource generation
  • Comparable across companies
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7
Q

Non-Financial Measures

A
  • Earlier identification of problems
  • Wider view of performance
  • More easily undertood by staff

BUT

  • More subjective
  • More difficult to benchmark against rivals
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