Please enable JavaScript.
Coggle requires JavaScript to display documents.
PART A: THE ROLE OF PERFORMANCE MANAGEMENT :explode: :fire: - Coggle…
PART A: THE ROLE OF PERFORMANCE MANAGEMENT
:explode: :fire:
Roles of Performance Management
Provides information for planning, decision-making, and control to create value.
Reports on environmental and social sustainability for integrated reporting.
Signals performance to investors and other stakeholders.
PERFORMANCE - A PROCESS OF VALUE CREATION
Turning resources into more valuable outputs (e.g., wood to paper, knowledge to contracts).
Focuses on increasing shareholder value through dividends and capital gains.
Emphasizes efficiency improvements (Nhấn mạnh cải thiện hiệu quả) and technological innovation.
Example
: Apple Inc.: Achieves value through innovation, customer satisfaction, and strategic investments.
Woolworths: Diversifies products and services, uses customer data for targeted marketing, and aligns employee incentives with business goals.
PERFORMANCE AND SUSTAINABILITY
:no_entry:
Performance must be sustained over time
:no_entry:
Meeting the needs of today without compromising the ability of future generations to meet their own needs
(không ảnh hưởng đến khả năng đáp ứng nhu cầu của các thế hệ tương lai)
Global Reporting Initiative (GRI) Standards
Provide principles and guidelines for sustainability reporting.
Include economic, environmental, and social topics.
INTEGRATED REPORTING
GRI and Integrated Reporting
:
GRI supports integrated reporting, advocating for robust sustainability metrics.
Aligns GRI Standards with the IR Framework to improve corporate reporting.
eXtensible Business Reporting Language (XBRL)
Uses technology to link and communicate business and financial data efficiently.
SIGNALLING
- Purpose
: Aims to influence decisions by communicating info about goals or achievements.
Financial statements signal performance and asset management to shareholders.
Challenges
:
Ensuring accurate signals and avoiding over-reliance on public relations.
Investors need to understand risks beyond what is disclosed in reports.
GOVERNANCE, RISK AND PERFORMANCE MANAGEMENT
Conformance (Sự phù hợp) and Performance
:
Conformance
: Ensures risk management and compliance (tuân thủ).
Performance
: Focuses on strategy, resource utilization, and value creation.
Risk management vs performance management
Setting Objectives:
Performance Management
: Focuses on setting and achieving organizational goals.
-
Risk Management
: Identifies potential risks that could impact the achievement of these goals.
Decision-making
Performance Management
: Involves making decisions to improve performance.
Risk Management
: Provides information about risks to inform better decision-making.
Monitoring & Control:
Performance Management
: Tracks performance against targets and takes corrective actions.
-
Risk Management
: Monitors risks and implements controls to mitigate them.
Resource Allocation:
Performance Management
: Allocates resources to achieve the best performance.
Risk Management
: Ensures resources are used in a way that minimizes risk.
Value Creation:
Performance Management
: Aims to create value for stakeholders.
Risk Management
: Protects and enhances value by managing potential threats and opportunities.