Download e-book for iPad: Business Performance Measurement: Unifying Theory and by Andy Neely


By Andy Neely

ISBN-10: 0511378769

ISBN-13: 9780511378768

ISBN-10: 052185511X

ISBN-13: 9780521855112

Drawing jointly contributions from major thinkers world wide, this 2007 publication studies advancements within the thought and perform of functionality size and administration. considerably up to date and converted from the 1st version, the booklet comprises ten extra chapters which overview functionality size from the views of accounting, advertising and marketing, operations, public prone and supply-chain administration. as well as those sensible analyses the publication explores functionality dimension frameworks and methodologies, practicalities and demanding situations, and enduring questions and matters. Edited by way of one of many world's prime specialists on functionality dimension and administration, company functionality size may be of curiosity to graduate scholars, managers and researchers who desire to comprehend extra concerning the concept and perform of functionality dimension and administration.

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Extra info for Business Performance Measurement: Unifying Theory and Integrating Practice

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That is, the use made of a particular performance measure should determine its operationalization and measurement. Different uses may require (sometimes subtle) differences in definition, and measurement techniques need to be made robust against likely attempts at manipulation. The framework proposed by Otley (1999) and extended by Ferreira and Otley (2005) provides one schema against which any system of performance measures used for management control purposes can be assessed. Conclusions Financial and accounting measures of performance often appear to have an objectivity, particularly to unsophisticated users, that turns out to be illusory.

Thus, profit is an appropriate performance measure. 6 Clearly, in performance management terms, cost centres need to have other (nonaccounting) measures associated with them in order to capture the outputs that result from expenditure on inputs. To operate control based primarily on accounting measures requires profit or investment centres to be established. Indeed, there has been a 5 6 See chapter 7 for further information on the balanced scorecard and other measurement frameworks. A further form of responsibility centre, the revenue centre, is sometimes used.

As a result, there are fundamental limitations as to what can be achieved by using historical accounting numbers to measure and assess managerial and organizational performance. Performance drivers The complementary approaches that have been developed move away from a concentration on accounting measures alone, and add consideration of a wider range of factors that are believed to drive future economic performance. The most popular of these approaches in the 1990s was the balanced scorecard approach, developed at the Harvard Business School (Kaplan and Norton, 1996).

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Business Performance Measurement: Unifying Theory and Integrating Practice by Andy Neely

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