Performance Measurement to Support Business Strategy

4 important questions on Performance Measurement to Support Business Strategy

Core resources and capabilities

Can make the company very succesful. For example the motivations and intelligence of the company's people, legal patents, secret recipes.

Three types of companies that are succesful:

  1. Cost leader
  2. Product differentiators
  3. Focused competitors

Advantage financial performance measure:

  • Motivating employees to improve the company's profit.
  • Getting managers attention.
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Disadvantage financial performance measure:

  • Not useful in identifying the cause of operational problems.
  • Commonly reported only on a monthly, quarterly or annual basis.
  • Many people within the organization do not see their work translates into financial results.

The question on the page originate from the summary of the following study material:

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