Advanced Performance Management

Strategic planning and control Strategic management accounting Performance management and control of the organization Changes in business structure and management accounting Effect of Information Technology (IT) on strategic management accounting Other environmental and ethical issues

External influences on organizational performance Changing business environment- role of risk and uncertainty in long term strategic planning and decision-making, risk analysis techniques in assessing business performance such as maximin, maximax, minimax regret and expected values. Impact of external factors on strategy and performance-PEST and Porter’s 5 forces model including areas: i) Political climate, ii) Market conditions, iii) Funding, impact of governmental regulations and policies on performance measurement techniques used and the performance levels achieved (utility services and former state monopolies).

Performance measurement systems and design Performance management information systems Sources of management information- internal and external sources of management accounting, information, their costs and limitations, use of information in planning and controlling activities Recording and processing methods- influence of type of business entity on the recording and processing methods, influence of IT developments Management reports

Strategic performance measurement Performance hierarchy Strategic performance measures in private sector- Application of different Performance measures- i) Return on Capital Employed (ROCE), ii) Return on Investment (ROI), iii) Earnings Per Share (EPS), iv) Earnings Before Interest, Tax,Depreciation and Amortisation (EBITDA), v) Residual Income (RI), vi) Net Present value (NPV), vii) Internal rate of return and modified, internal Rate of Return (IRR, MIRR), viii) Economic Value Added (EVA TM); Divisional performance and transfer pricing issuesStrategic performance measures in not-for profit organizations Non- financial performance indicators The role of quality in management information and performance measurement systems- application of Japanese business practices and management accounting techniques, including: i) Kaizen costing,ii) Target costing, iii) Just-in-time, and iv) Total Quality Management, Discriminate between quality, quality assurance, quality control and quality management, Six Sigma as a quality improvement method using tools such as DMAIC for implementationPerformance measurement and strategic human resource management issues Performance measurement and the reward systems

Performance evaluation and corporate failure

Alternative views of performance measurement and management-‘balanced scorecard’ approach, ‘performance pyramid’, work of Fitzgerald and Moon, Performance Prism, application of activity-based management, value-based management approaches to performance management. Strategic performance issues in complex business structures- Strategic models in assessing the business performance of an entity, such as Ansoff, Boston Consulting Group and Porter, problems encountered in planning, controlling and measuring performance levels, e.g. productivity, profitability, quality and service levels, in complex business structures, impact on performance management of the use of business models involving strategic alliances, joint ventures and complex supply chain structures, influence of culture and strategy will influence the adoption of new performance measurement methods and techniques, Predicting and preventing corporate failure- quantitative and qualitative performance measures and models (such as Zscores and Argenti), performance improvement strategies to prevent corporate failure Current developments and emerging issues Current developments in management accounting techniques-environmental management accounting, lifecycle costing, input/output analysis and activity-based costing, use of benchmarking in public sector performance (league tables), issues surrounding the use of targets in public sector organizations. Current issues and trends in performance management- the changing role of the management accountant in today’s business environment as outlined by Burns and Scapens, contemporary issues in performance management.