Performance reporting has three main aspects that managers must understand in order to implement it properly:
- 1. Managers must represent organizational strategy the way a scientist would, by identifying causes and effects and linking each cause and effect to a measure can be reported, discussed and improved upon throughout the organization.
- 2. Managers must understand the inherent errors in your measures of performance. You need to understand the nature of the errors and how best to address them.
- 3. Managers must understand how the performance measures you create will influence the behavior of others.
This online course explores the types and sources of measurement error, the use of causal models in analyzing measures of performance, and the differences between managing measures and managing performance.
Faculty AuthorRobert J Bloomfield, PhD
Benefits to the Learner
- Predict how different forms of measurement error present in your firm will influence the behaviors and decisions of managers
- Diagnose reasons for good and bad performance by analyzing the cause-and-effect relationships between objectives and outcomes, and the measurements used for each
- Propose improvements to your firm's systems for measuring performance in the planning and execution of business strategy
- Distinguish between managing measures and managing performance
People at all levels in any functional area in for-profit, not-for-profit and governmental organizations who want to be more effective in:
- Specifying organizational strategy, or implementing the strategies specified by others.
- Linking performance evaluation and incentives to organizational strategy.
- Revising strategy and operations to accomplish strategic goals at lower cost.
- Helping employees collaborate and work together across departments and functional areas, and communicate more effectively with colleagues about the goals and performance of their organization.
Accounting and finance people will also benefit enormously from this program. This series applies the work of accounting, measurement, and thinking strategically about costs and performance in every corner of an organization.