Author - Savoir Faire

Companies worldwide are transforming themselves for a world where competition is based more on information, and on the ability to exploit intangible assets, than on their ability to invest in and manage tangible assets. Performance management systems are now an established tool at many firms. Performance review can shed light on the real drivers of organisational value, and every company must now redesign its approach to performance measurement. This article focusses on the financial measures of performance.

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In a typical B2C business, where customer needs variety, often production is at logger heads with planning and marketing. If the issue is drilled down further, we find that the performance measure for a production head is the productivity, which is usually a measure set since eons. Companies in order to sustain have to go beyond the drawing board and focus on their performance metrics.

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Many organisations have been reaping the rewards of the balanced scorecard. This approach to project management provides a holistic approach for effective project management implementation within organisations. This has resulted in better ROCE, improved customer satisfaction, increased speed in execution and higher employee satisfaction. The whole framework is supported by the four pillars of balanced scorecard: financial perspective, customer perspective, internal business process perspective and learning & growth perspective. Several attempts have also been made to search for measures that go beyond financial measures of performance.

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