what are some other performance measurement techniques commonly used in business?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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what are some other performance measurement techniques commonly used in business?

Expert Solution
Performance measurement

The Measurement of the overall functions related to business as a whole to evaluate present and plan for future -Performance measurement

These are few objectives to consider 

  • The mission statement - Purpose ,values ,policies and culture
  • Planning levels - Strategic, Tactical, operational 
  • External and internal factors affecting performance - Economic, government
  • Critical success factors - Quality of service, competitiveness
  • Financial performance measures - Inflow( revenue) , Outflow( costs) 

Performance measurement techniques

  1. Benchmarking
  2. Financial 
  3. Non-Financial
  4. Balanced score card
Performance measurement techniques 1 and 2

In brief about the above

  1. Benchmarking -Technique for continuous improvement by what is it and how is it their business performing in the market an what competitors do in the industry

Types of benchmarking                                    

  • Internal
  • Competitive
  • Functional
  • Strategic

Benchmarking process

  • Planning 
  • Analysis
  • Action
  • Review

2. Financial performance measures To monitor the inflow of revenue and outflow of costs which is analysing the overall money in the business

  • Measuring profitability - ROCE , ROS , Gross margin
  • Measuring activity - Assets, Inventory, pays
  • Measuring risk - Capital gears , Interest cover
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