Format:
1 online resource (218 pages)
Edition:
1st ed.
ISBN:
9780521812436
,
9781139147996
Content:
Performance measurement remains a vexing problem for business firms and other kinds of organisations. This book explains why the performance we want to measure (long-term cash flows, long-term viability) and the performance we can measure (current cash flows, customer satisfaction, et cetera) are not the same
Note:
Cover -- Half-title -- Title -- Copyright -- Contents -- Figures -- Tables -- Preface -- Introduction -- Avoiding bedrock issues: the "balanced scorecard" -- Ideal performance measurement -- The performance chain -- The elemental conception of the firm -- A brief itinerary -- The bottom line -- 1 Why are performance measures so bad? -- Why all performance measures are second best -- How size and complexity complicate performance measurement -- Performance measurement in an entrepreneurial firm -- Performance measurement in a large firm -- The seven purposes of performance measures -- The four types of measures -- Market valuation -- Financial measures -- Non-financial measures -- Cost measures -- Comparing the four types of measures -- The paradox of large organizations -- How firms have sought to improve measurement -- Driving financial measures downward -- The multiunit firm as a tracking mechanism -- Economic value added -- Placing non-financial measures on an equal footing with financial measures -- The balanced scorecard approach -- Business models of performance -- The proliferation of measures -- The explosion of non-financial measures -- The preoccupation with market valuation -- The emphasis on costs -- The compression principle in measurement -- The challenge of simplifying measurement -- The bottom line -- 2 The running down of performance measures -- Why performance measures run down -- Positive learning -- Batting averages in major league baseball -- Hospitals -- Nuclear power plants -- Automotive defects -- Learning and the search for new measures -- Perverse learning -- Selection -- Suppression -- Consensus -- External change and the running down of performance measures -- Changing measures -- The case of General Electric -- A quantitative test -- Can running down be inconsequential?
,
Relative performance measurement and running down -- The use-it-and-lose-it principle in performance measurement -- The bottom line -- 3 In search of balance -- From financial measurement to balanced measurement and back again -- The focus on financial results: business unit earnings and margins -- The "performance improvement program" -- The balanced scorecard -- An analysis of the balanced scorecard -- Flowcharting the scorecard process -- Weighting measures -- Finding measures that look ahead to bottom-line performance -- What did the balanced scorecard communicate to employees? -- The elements of balanced performance measurement -- Finding the right measures -- Choose the initial measures -- Consider tradeoffs between generic and specific measures -- Validate measures by testing the business model -- Anticipate that measures will change -- Combining dissimilar measures -- Choose between formulaic and subjective combination of measures -- Manage distortions caused by compensation formulas -- Manage distortions caused by subjectivity -- Anticipate that the performance measurement system will change -- A brief summary -- The bottom line -- Postscript: From balanced performance measurement to a sales-focused strategy -- 4 From cost drivers to revenue drivers -- From activity-based costing to activity-based profitability analysis -- Products whose value is captured in specifications -- Products not made to specifications -- Time-sensitive products -- The nuts and bolts of activity-based profitability analysis -- From ABC to ABPA: a case in point -- Measuring customer profitability -- Managing customer complaints -- Assessing costs of the problem-resolution process -- Linking activities to revenues with ABPA -- Using ABPA to find revenue drivers -- Some outstanding issues -- Can non-financial measures be folded into ABPA?
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Who bears the cost of inefficiency? -- Can ABPA be sustained? -- Does ABPA resolve critical measurement issues? -- Where ABPA does not apply: signaling commitments and values with performance measures -- The bottom line -- 5 Learning from ABPA -- How fine-grained measurement aids organizational learning -- Automobile assembly -- Software development -- Generalizing beyond two cases -- Learning from ABPA -- The screen in front of the banker -- Action and learning under ABPA -- Action implications -- Learning from action -- Sustaining learning -- Compensating people under ABPA -- Financial measures and the balanced scorecard versus ABPA -- Is ABPA advantageous? -- Measures and units -- Performance drivers -- Compensating people -- Learning -- Implementation -- Ease of implementation versus quality of measurement -- The bottom line -- 6 Managing and strategizing with ABPA -- An organizational design for ABPA -- The ABPA organization versus conventional organizational designs -- Organizational design in manufacturing versus the ABPA organization -- The ABPA organization and the e-commerce model -- ABPA as a strategic capability -- Balancing centralized and decentralized strategizing -- The bottom, bottom line -- Notes -- Introduction -- 1 Why are performance measures so bad? -- 2 The running down of performance measures -- 3 In search of balance -- 4 From cost drivers to revenue drivers -- 5 Learning from ABPA -- 6 Managing and strategizing with ABPA -- Index
Additional Edition:
Print version Meyer, Marshall W. Rethinking Performance Measurement Cambridge : Cambridge University Press,c2003 ISBN 9780521812436
Language:
English
Keywords:
Electronic books
URL:
FULL
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