Lecture 8- Strategic performance measurement

Strategy- that organisation intends to take over to meet its & achieve its . It focuses on ways to manage organisation’s to create for owners &/shareholders & to all stakeholders

Strategic & strategic is needed to put into practice

Strategic planning involves & strategy. strategy is making choices about types of & in which organisation will operate. strategy is concerned with way that business within its chosen

Strategic planning draws on wide range of information, as well as information from internal & external to organisation. Information is both &

One problem with divisional performance measures is that it emphasises only of

Another problem with divisional performance measures is that they do not focus on of

Third problem with divisional performance measures is that there is guidance for

Fourth problem with divisional performance measures is that they may encourage actions which decrease &

To improve & understand performance, need to manage of . They also need to use measures

Strategic performance measurement have (sustain & ), include , subject to , use & emphasise

Non-financial measures reflect of future ( should flow through to ). They are more & more & easier to relate to, particularly at level

Examples of non-financial measures are: , , &

Balance scorecard- Performance system that identifies & reports on performance for each key area of business. It translates into plan of action through specific & drivers. Also, it identifies (assumed) cause & effect between these measures

Balance scorecard- management tool that integrates & measures of performance in concise report, with aim of incorporating management within management process

One perspective of balance scorecard is . This focuses on how appears to its

Another perspective of balance scorecard is . This focuses on how looks to

Third perspective of balance scorecard is . This focuses on what needs to at

Fourth perspective of balance scorecard is . This focuses on how can continue to & value

Lag indicators- Represent performance. It comes at end of process. Many indicators are examples of lag indicators. They are sustained by indicators

Lead indicators- Performance that lead to achievement of indicators. It comes before process. Also, it is &

Steps for constructing balance scorecard include: firstly, deciding on overall for each , then deciding how to monitor this ( indicators) & finally, deciding indicators in relation to indicators

Strategy map- representation that explains (assumed) cause & effect relationships linking of of balance scorecard & organisation’s . May also identify between & measures. Also, it is tool to communicate to managers components of & that will help achieve it

Errors in using non-financial measures include: there is between & performance, there are to engage in behaviour & wrong priorities may be selected

Disadvantages of non-financial measures include: choice of non-financial measures available, inclusion of non-financial measures can be , managers must necessarily make , some non-financial measures lack & some measures may not easily into outcomes