Tutorial 4 - Non financial performance.docx - 22421 Management Decisions and Control Student guide Topic Non financial performance measurement Key

Tutorial 4 - Non financial performance.docx - 22421...

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22421: Management Decisions and Control - Student guide Topic: Non- financial performance measurement Key concepts - Why measure non-financial performance? - Lead vs Lag - Common types of non-financial measures - Problems in measuring non-financial performance Weekly objectives: For students to: Identify a variety of non-financial performance measures found within organisations Design a variety of appropriate non-financial performance measures for a specific organisational unit (across different types of performance, and lead and lag) Evaluate the value and problems of using non-financial performance measures in organisations Readings Textbook: Chapters 14 and 15 Article: Kaplan, R., & Norton, D. (1992). The balanced scorecard – measures that drive performance. Harvard Business Review , 70(January-February), 71-79. Article: Ittner, C. D., & Larcker, D. (2003). Coming up short on non-financial performance measurement. Harvard Business Review , 81(11), 88-95. Recommended further reading: Article: Chartterli, A. & Levine, D. (2006). Breaking down the wall of codes: evaluating non-financial performance measurement. California Management Review, 48(2), 29-50. Revision questions 1. Imagine a pizza restaurant, which makes their own pizzas and delivers to customers using mopeds. How could you measure: a. On-time delivery? b. Product quality? c. Innovation? d. Employees’ skills? 2. What sort of measures would you expect to find in an Accounting firm in terms of their customer performance?
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