PERFORMANCE MEASUREMENT
A basic knowledge of financial and managerial accounting is required as well as a basic knowledge of planning and control systems.
The course offers to students the opportunity to learn the latest techniques for measuring performance, experimenting with it in specific organizational contexts and to develop appropriate capacities for design and analysis performance measurement systems specifically geared to support the implementation and review of corporate strategies.
For attending students:
Two partial written exams during and at the end of the course (exercises and open questions). A grade higher than 18/30 in the first partial exam allows the student to participate in the second partial exam. The final grade is the average, rounded up according to the conventional rules.
At the written test adds a score of expressive participation of the classroom and the quality of project carried out, between 0 and 3 points awarded individually by the teacher in charge of the classroom.
For non attending students(and those who do not pass the partial exams):
A written exam in the established dates(exercises and open questions).
The course focuses on Performance Measurement and Control Systems (PMCS) that can be used in complex companies. It is divided into 3 blocks educational complementary: 1) The foundation for strategy implementation and the tools for quantitative assessment of the state of health of a company; 2) Creating performance measurement systems 3) Achieving profit goals and strategies.
PART 1 - The foundation for strategy implementation and the tools for quantitative assessment of the state of health of a company:
- Basis for a successful strategy
- Interpretation of the financial performance achieved by companies through the strategic reading of balance sheet data
- The reclassification of the balance sheet
- The ratio analysis and cash flow: assessment of the conditions of the past profitability, liquidity, solvency and future sustainable growth
PART 2 - Creating performance measurement systems - Basis for a successful strategy:
- How to prepare a Profit Plan
- Profit’s performance evaluation at the strategic level
- The decisions of the acquisition of asset
- The market-based measures
- The reports on quasi-market and transfer pricing
- The Balanced Scorecard
PART 3 - Achieving profit goals and strategies:
- The use of economic information for the performance and behaviour management control
- Allocation decisions and retrieval of capital resource
- Alignment of performance objectives with incentive
- The risk measurement
- The integrated management of the levers of control
• R. SIMONS, Performance Measurement & Control Systems for Implementing Strategy, Text & Cases, Prentice Hall, 2000;
• Slides and exercises posted to the course web site.