Principles of Managerial Accounting · free preview
The Importance of Performance Measurement
Performance measurement tells an organization whether strategy is working, aligning behavior with goals, and its measures silently dictate what employees actually optimize.
1. Measurement as organizational steering
Measurement as organizational steering
2. How measures shape behavior
How measures shape behavior
3. Aligning measurement with strategy
Aligning measurement with strategy
4. Measurement and accountability
Measurement and accountability
5. Why measures steer
Why do performance measures shape employee behavior so strongly?
6. Unintended consequence example
A call center rewards short calls, and customer satisfaction falls. What does this illustrate?
7. Alignment test
What question tests whether a measure aligns with strategy?
8. Controllability in accountability
Why does fair accountability require controllable measures?
9. Optimize what
Managers famously optimize what is ____. One word.
10. Orphan measure
A measure tracked but tied to no strategic objective is called an ____ measure. One word.
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