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    SFAD - Class #2

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    hinah
    The document provides an overview of the evolution of performance measurement from the early 20th century to present. It describes how performance measurement has developed from a focus on efficiency and accounting figures to incorporate quality, customer perspectives, and integrated approaches using balanced scorecards. The document also outlines some of the key thinkers who advanced performance measurement at different stages, such as Frederick Taylor's time motion studies, DuPont's use of ratios, and Kaplan and Neely's balanced scorecard. Finally, it discusses how performance measurement may increasingly focus on prediction, risk assessment, and inclusion using new data and analytics approaches.

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    SFAD - Class #2

    Uploaded by

    hinah
    22 views15 pages
    The document provides an overview of the evolution of performance measurement from the early 20th century to present. It describes how performance measurement has developed from a focus on efficiency and accounting figures to incorporate quality, customer perspectives, and integrated approaches using balanced scorecards. The document also outlines some of the key thinkers who advanced performance measurement at different stages, such as Frederick Taylor's time motion studies, DuPont's use of ratios, and Kaplan and Neely's balanced scorecard. Finally, it discusses how performance measurement may increasingly focus on prediction, risk assessment, and inclusion using new data and analytics approaches.

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    The document provides an overview of the evolution of performance measurement from the early 20th century to present. It describes how performance measurement has developed from a focus on efficiency and accounting figures to incorporate quality, customer perspectives, and integrated approaches using balanced scorecards. The document also outlines some of the key thinkers who advanced performance measurement at different stages, such as Frederick Taylor's time motion studies, DuPont's use of ratios, and Kaplan and Neely's balanced scorecard. Finally, it discusses how performance measurement may increasingly focus on prediction, risk assessment, and inclusion using new data and analytics approaches.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    22 views15 pages

    SFAD - Class #2

    Uploaded by

    hinah
    The document provides an overview of the evolution of performance measurement from the early 20th century to present. It describes how performance measurement has developed from a focus on efficiency and accounting figures to incorporate quality, customer perspectives, and integrated approaches using balanced scorecards. The document also outlines some of the key thinkers who advanced performance measurement at different stages, such as Frederick Taylor's time motion studies, DuPont's use of ratios, and Kaplan and Neely's balanced scorecard. Finally, it discusses how performance measurement may increasingly focus on prediction, risk assessment, and inclusion using new data and analytics approaches.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 15

    SFAD

    Class # 2
    What is Performance Measurement?

    Assessment of progress & results (Cruz et al., 2011; Payer & Hiebl, 2013)

    Operationalize strategy to get result (Franco et al., 2012; Hall, 2010)

    PM is a technical process as well as a social process (Bititci et al., 2012)


    So, PM is…
    • Assessment of results
    • A system which translates strategy into action
    • A tool to quantify efficiency & effectiveness
    • Accomplishment of tasks against pre-determined standards
    • Achieving objectives
    Why Measure Performance?
    • Know where you are & where you are going
    • Motivation
    • Improvement (identify problems & strengths)
    • Plan
    • Build reputation
    • Attract talent
    • Isomorphism (Mimic, Coercive, Normative)
    • Become SUSTAINABLE
    The 5 Ps of PMS
    Prior Preparation Prevents Poor Performance
    (Prof. Steve Hanke)

    Plan, Act, Monitor, Adjust


    Evolution of PM
    Dominant Perspectives in PM
    Accounting Figures
    …………………
    …………………………… …………………………..

    Financial Ratios
    …. …………….
    Quality
    ………
    Integrated

    1900 1920 1940 1960 1980 2000


    20th Century
    History Of PM
    • Evolved from simple to complex, static to dynamic, discrete to
    continuous
    • Double-Entry Book-Keeping System (13th century)
    • Scottish Textile Factory Records (18th century)
    • Formal process of measuring, recording, reporting (20th century)
    Efficiency Era (1900-20)
    • Frederick Taylor: Industrial efficiency can be quantified and hence
    improved. Time & motion studies. Observe and document the
    processes… time taken, movements etc…(i.e. input resources) … input
    leads to output (production).. So there is a causal relationship which
    can be optimized; this is called system analysis
    • PM Focus: Increase Productivity, External factors are taken as a
    constant
    Result Era (1920-50)
    • DuPont: Profit Margin * Asset Turnover * Equity Multiplier
    • Profit Maximization is the ultimate aim
    • Profitability, asset use efficiency, financial leverage
    • Target based (production, sale, profit)
    • PM Focus: Accounting information & ratio analysis. External factors
    impacts PM but are un-controllable
    Quality Era (1960-90)
    • Deming & Ducker: PM is an active process
    • Planning is the key
    • Quality is an outcome NOT a method
    • Motivate & train your employees
    Deviations are caused by internal flaws
     Customers are the key
    PM Focus: KPIs, Variance Analysis
    Integration Era (1990----)
    • Kaplan & Neely: BSC, Prism
    BSC: Financial, Customer, Internal process, Learning

    • Prism: Ultimate aim is stakeholders satisfaction


    Stakeholders: Who are they? What do they need?
    Strategies: What strategies we need to serve the needs
    Processes: What processes we need to execute these strategies
    Capabilities: What we need to operate these processes
    Stakeholder contribution: What we need to develop these capabilities
    Measurement Levels

    IMPACT
    LEVEL
    Changes in Society
    OUTCOME
    LEVEL
    Changes in Individual Life

    Changes in Behaviour

    Changes in Perceptions & Econ Status OUTPUT


    LEVEL
    Changes in Knowledge & Skills
    PM in the Future
    • Assessment tool Planning tool
    • Clear boundaries Complex social-network
    • Monitoring and Accountability Predictive
    Projections using: Big Data, AI

    Inclusive
    Strategy Builder Flexible
    Risk Incorporated
    Articles Link
    • https://www.researchgate.net/publication/329735963_International_Journal_of_Economics_Co
    mmerce_and_Management_PERFORMANCE_MEASUREMENT_HOW_FAR_IT_HAS_TRAVELED_AN
    D_WHERE_IS_IT_HEADED

    • https://www.researchgate.net/publication/325180038_Performance_measurement_The_next_st
    ation
    Liquidity
    Ability to pay in the short-term
    Working Capital efficiency
    Matching of receivables and payables generated from routine business
    activities
    Current Assets/Current Liabilities
    Quick Assets/Current Liabilities
    Cash + Marketable Sec / Current Liabilities

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