PERFORMANCE MEASUREMENT SYSTEM
- Overview
- Assessment methods
- Learning objectives
- Contents
- Full programme
- Bibliography
- Delivery method
- Teaching methods
- Contacts/Info
This advanced course of the Master's Degree in Economics, Law and Finance assumes some basic knowledge of Financial Statement, Finance and Control. In case the student does not possess the required skills, the course lecturers will provide him/her with some necessary and sufficient materials to fill the knowledge gaps.
For attending students
The exam for those who attend the course consists of a single general written test, to be taken at the end of the course (May 2022) or at the end of the course (June/July 2022). Outside these examinations, the student's status as an attending student is revoked.
For those attending, all the material uploaded on e.learning and chapters 1-5-6-8 (EVA only)-9-11-12-13 of the adopted volume of R. Simons will be examined.
In-person exams:
The written tests consist of some exercises and theory questions formulated in different ways (multiple choice, true-false, open questions), for a maximum duration of 1h and 45'. The exercises allow the teacher to check the student's level of learning in relation to the ability to analyse and process data referring to concrete company situations, while the theory questions are used to check knowledge of concepts, definitions and models. The tests have a maximum score of 31/30.
Distance examinations:
In the case of online examinations, the lecturers will explain the structure of the examination in good time, also in relation to the number of participants.
Defining the grade:
For the assignment of the final grade, the following will be assessed:
The following will be taken into account for the final grade:
– The general test (with a weighting of 70% on the overall assessment)
– The two group assignments (each weighing 15% of the overall grade).
For non-attending
For non-attending students (students who have not done the assignments), all the material uploaded on e.learning and chapters 1-2-3-4-5-6-8 (EVA only)-9-11-12-13 of the adopted volume of R. Simons will be tested. Also for non-attending students the exam is written and has the same structure as the exam for attending students, exercises and theory questions.
The course aims to provide students with the opportunity to learn how effective "measurement systems" can be designed and implemented to support the formulation of business strategies and control performance at different levels of the organisation in complex companies
The course is divided into three complementary teaching blocks: 1) The analysis of the relationships between strategy, organization and performance in complex enterprises; 2) Measurement tools for the evaluation of strategic alternatives and economic accountability; 3) Measurement tools for monitoring the performance of individual managers and businesses.
PART 1 - The analysis of the relationships between strategy, organization and performance in complex enterprises
- Complex enterprises: strategy, organization and performance
- Assessing the health of a company through financial statement data
- Performance measurement systems (SMP) to support the strategic management and economic empowerment of managers
PART 2 - Measurement tools for assessing strategic alternatives and economic accountability:
- Assessing the feasibility and sustainability of a future strategy through the Profit Plan tool: the profit wheel, the cash wheel, and the ROE wheel
- Empowering managers to achieve short-term objectives through the master budget tool: operating budgets, financial budgets and balance sheets
PART 3 - Measurement tools for assessing the performance of individual managers and businesses
- Assessing the profitability of a business through Variance Analysis: assessing competitive effectiveness and evaluating operational efficiency
- The link between strategy and performance measures: the Balanced Scorecard, advantages and limitations
- Measuring divisional performance: Economic Profit and Economic Value Added (EVA)
- Identification and management of business risks: types of risk, internal pressures, internal control system
- Sustainability and performance measurement systems: sustainability report and integrated report.
The following texts and teaching materials are recommended for passing the exam:
• R. SIMONS, Performance Measurement & Control Systems for Implementing Strategy, Text & Cases, Prentice Hall, 2000;
• Slides cases, exercises, teaching notes and other material are available on the course e-learning platform.
Lectures, exercises and case discussions. Attending students will be asked to carry out two group assignments that will be assigned by the lecturers. The projects will be assessed and will contribute to the final exam grade, as specified below.
Office hours
Teachers will be available to students during receptions whose calendar is available on the staff of the teachers themselves.
Prof. ANNA MARIA ARCARI - anna.arcari@uninsubria.it +39 0332 395540
Prof. ANNA ISIDE PISTONS - anna.pistoni@uninsubria.it +39 0332 395517