ACCT3583_2011_Topic 04_Seminar

ACCT3583_2011_Topic 04_Seminar - Topic 4 Course content...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Click to add text to title page ACCT3583 Management Accounting 2 Topic 4 – Implementing Strategy via Strategic Performance Measurement Systems Topic 4: Course content overview Analysing the external environment Analysing the internal environment Topic 1 Topic 2 2 Developing strategy Managing Shareholder Value Creation Measuring performance Topic 3 Topic 4 Topic 5 ACCT3583 Management Accounting 2 Topic 4: Desired Learning outcomes In Topic 4, we aim to be able to: Understand the characteristics and benefits of a performance measurement system Appreciate the reasons for including both 3 financial and non-financial measures in a performance measurement system Design and critically evaluate a BSC for a given organisational unit Explain and develop a strategy map Critically evaluate claims made of a BSC and understand its limitations in theory and practice ACCT3583 Management Accounting 2 Overview of our measuring performance seminar… Performance measurement systems 4 ACCT3583 Management Accounting 2 Financial and non-financial measures Balanced scorecard To implement strategy, managers need a performance management framework Organisational objectives What are the key objectives to the organisation’s future success? Performance measures (metrics) 1. PMS 5 Source: Modified from Otley (1999) Performance standards (targets) What are the desirable levels of performance? Incentive and reward schemes What are the rewards/penalties associated with the performance targets? Feedback loop What are the information flows that facilitate learning? How wil we measure strategies/ processes that support organisational objectives? ACCT3583 Management Accounting 2 Performance measurement systems… A performance measurement system (PMS) measures performance by comparing actual results with a target Conventional PMS 6 Provide measures of financial performance Contemporary PMS Provide measures of performance across a whole range of critical success factors , including quality, delivery, innovation and financial performance New approaches to performance measurement include strategic performance measurement systems (SPMS) such as the balanced scorecard (BSC) Source: Langfield-Smith, K., Thorne, H., and Hilton, R, (2009) ACCT3583 Management Accounting 2
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Features of a good performance measurement system (PMS) Link to strategy and the goals of the organisation Be simple Recognise controllability Emphasise the positive 7 Be timely Include benchmarking Embrace participation and empowerment Include only a few performance measures Link to rewards Source: Langfield-Smith, K., Thorne, H., and Hilton, R, (2009) Now let’s have a go at assessing a PMS against these criteria….
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/19/2011 for the course FINS 3650 taught by Professor Arnold during the Three '11 term at University of New South Wales.

Page1 / 8

ACCT3583_2011_Topic 04_Seminar - Topic 4 Course content...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online