CERTIFIED FINANCIAL ACCOUNTANT
PG-02 Corporate Performance Evaluation
Course Objective
It’s a modernized course, which is necessary to learn the students, for getting complete edge
and ideas how to evaluate the Corporate Performance, material of this course is available in
the useful links, reference material section of the SOAE website.
Course Outline
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Why evaluate the performance of organisations?
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Why is so much measurement in purely financial terms?
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Are ‘soft’ measures of performance of any use?
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Is performance evaluation an end in itself, or a potentially valuable tool for business
managers?
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Is it feasible to have a measurement system that monitors all the lead indicators of an
organisation’s performance?
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How do we look to our shareholders (what they term the financial perspective)?
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How do we look to our customers (the external perspective)?
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At what must we excel (the internal perspective, viewed in terms of core
competencies)?
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How can we maintain continuous performance improvement, and create
added value (what they term the innovation & learning perspective)?
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How can measures be integrated both across an organisation’s functions
and through its hierarchy?
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How can conflicts between measures be avoided?
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Can functional and process measures co-exist?
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Everything can be measured but how can the number of measures be
kept to a meaningful but manageable set?
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How can the cost/benefit of a system be analysed?
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How does process measurement build capability?
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For Individual Measures:
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How can ‘flexibility’, which is often simply a property of the business
process, be measured?
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How can measures be designed to promote inter-function co-operation?
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How can measures be designed that do not encourage ‘short-termism’?
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How can measures be designed to encourage appropriate (e.g. employee) behaviour?
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How can ‘flexible’ measures, those that take account of changes in the business
environment, be defined?
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How should data generated from a measure be displayed?
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How can management ensure that appropriate (perhaps corrective) action follows
measurement?
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How can predictive measures be identified and developed?
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Set-off and carry forward of losses.
For The Business Environment:
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How can organisations integrate measures into strategic control systems?
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How can management ensure that the system matches the organisation’s strategy
and culture?
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Where are the strongest links to business strategy?
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To which dimensions of the internal and external business environment does the
system have to be matched?
The ‘ modified performance measurement record sheet looks like this:
Title
Purpose
Relates to …
Target
Formula
Frequency of measurement
Frequency of review
Who measures?
Source of data
Who owns the measure?
What do they do?
Who acts on the data?
What do they do?
Notes and comments