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Performance Management (Balanced scorecard (ROI vs Eva (ROI encourages…
Performance Management
Systems
Budgeting
Beyond budgeting
Performance Prism
Measures
Financial
Profit
ROI
EVA
Non-financial
Quality
Productivity
Customers
Measuring performance
Link measures to strategy
Validate assumed cause-&-effect relationships
Set appropriate targets
Measure consistently
Balanced scorecard
Link to strategy
Multiple perspectives
Cause-effect relationships
The financial perspective is the ultimate end for for-profit companies but not not-for-profits
ROI vs Eva
ROI encourages managers to invest in projects that will increase current ROI
EVA encourages managers to invest in projects that cover the cost of capital