what are some other performance measurement techniques commonly used in business?
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
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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what are some other performance measurement techniques commonly used in business?
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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
- Benchmarking
- Financial
- Non-Financial
- Balanced score card
Performance measurement techniques 1 and 2
In brief about the above
- 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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