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ACCA PM Non-Financial Performance Indicators

1) The document discusses non-financial performance indicators such as critical success factors (CSFs) and key performance indicators (KPIs) which are used to measure an organization's success. 2) It describes the balanced scorecard approach containing four perspectives - financial, customer, internal business processes, and learning and growth. 3) Key characteristics of services are also outlined, including simultaneity (production and consumption coincide), heterogeneity (inconsistency in quality), and intangibility (no physical aspects).

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Amelia
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47 views7 pages

ACCA PM Non-Financial Performance Indicators

1) The document discusses non-financial performance indicators such as critical success factors (CSFs) and key performance indicators (KPIs) which are used to measure an organization's success. 2) It describes the balanced scorecard approach containing four perspectives - financial, customer, internal business processes, and learning and growth. 3) Key characteristics of services are also outlined, including simultaneity (production and consumption coincide), heterogeneity (inconsistency in quality), and intangibility (no physical aspects).

Uploaded by

Amelia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Non-financial performance indicators

Critical success factors (CSFs)

Key performance indicators (KPIs)

Balance scorecard

Building block model

Characteristics of service
1
2

4
Performance requirements which are fundamental to an organisation's success
can usually be identified from an organisation's mission statement, objectives and strategy

Measurement of the achievement of the chosen critical success factors.


should be Specific, Measurable, and Relevant.

proposed by Kaplan and Norton can be used in trading, manufacturi


contains four key groupings of performance measures called " perspectives." (less important to most important)
Financial perspective Concentrates on how the firm appears to its sh
Typical outcome measures include profit, sales

Customer perspective Focus on the question, "What must the firm do


Typical outcome measures include Measures o
These can be sub-divided into lead times, on-ti

Internal business perspective Focus on the question, "What must the firm do
Typical outcome measures include those relati

Learning and growth perspective Focus on the question, "What infrastructures m


"What capabilities must be improved or acquir
Typical outcome measures include those relati

by Fitzgerald and Moon for performance measures in service industry

Three types of building block model


Dimensions of performance FCQFIR
The results - measured by
1) Financial performance
2) Competitiveness (sales growth and market share)
The determinants ( what determines competitive and financial performance )
1) Quality of service
2) Flexibility
3) Resource utilization
4) Innovation

Standards OAE
These are ownership, achievability, and equity.

Rewards CMC
If the performance measurement system is to operate successfully,
Clarity, Motivation, and Controllability are required.

( SHIP no transfer)
Simultaneity or Inseparability Production and consumption of the service co
Heterogeneity lack of consistence
Variability of quality occurs and the quality of the service may depend on who it is that delivers the service

Intangibility Lack of substance


No physical aspects to a service- no taste, feel

Ownership Services do not result in transfer of property.


Purchase of a service only gives the customer
ed in trading, manufacturing and service industry
t important)
w the firm appears to its shareholders and considers what the firm's financial objectives are
asures include profit, sales, ROI and cash flow.

n, "What must the firm do to satisfy its customers so as to achieve its financial objectives?"
asures include Measures of customer satisfaction, customer retention, and market share
vided into lead times, on-time delivery, product quality and product cost

n, "What must the firm dowell internally in order to support the product/market strategy and to achieve its financial objectives?"
asures include those relating to innovation (product and process) and operations (cycle times, defect rates).

n, "What infrastructures must th or


ust be improved or acquired to achieve long-term targets for the customer and internal business perspectives?"
asures include those relating to employee satisfaction, training and employee retention.

asures in service industry

sumption of the service coinciding


to a service- no taste, feel, visible presence.

t in transfer of property.
e only gives the customer access to or the right to use a facility, not ownership.
financial objectives?"

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