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Course 2017-2018 a.y.

20161 - PERFORMANCE MEASUREMENT


IM - ACME
Department of Accounting

Course taught in English

Go to class group/s: 6 - 7 - 19

IM (6 credits - I sem. - OB  |  SECS-P/07)
Course Director:
ARIELA CAGLIO

Classes: 6 (I sem.) - 7 (I sem.)
Instructors:
Class 6: ARIELA CAGLIO, Class 7: ARIELA CAGLIO


Course Objectives

The course aims to explore the role of performance measurement and control systems in supporting managers in the definition of strategy and in their day-to-day activities.
It is widely acknowledged that the survival of any firm depends on its capabilities to generate successful strategic ideas, to motivate its managers to implement strategies, to identify and manage strategic risks and, finally, to create stakeholders' trust. In these respects, performance measurement systems play a crucial role. On the one hand, through strategic planning, programming and budgeting, performance targets are set, coherently with strategic and organizational choices, and used to evaluate managers' accountability. On the other hand, reporting systems serve to communicate actual performance to both managers and stakeholders in a way that fosters learning from experience, enables redirecting ineffective behaviours and supports the generation of stakeholders' trust.


Intended Learning Outcomes
Click here to see the ILOs of the course

Course Content Summary
The course begins with the definition of the functions of performance measurement and control systems (PMCS) within governance processes, with particular reference to strategic and organisational choices.
Then, performance measurement and control systems are studied by highlighting their role in influencing the generation of strategic ideas and in securing their correct implementation. More specifically, the core of the course is focused on the design and use of all the control system tools and techniques that are needed to manage a business effectively, e.g. profit plans, segment reports, asset allocation systems, strategic profitability analysis tools.
The main topics of the course are:
  • The relationships among PMCS, strategies and organizational design
  • Profit plans and their use to evaluate firms' strategic alternatives and define targets
  • Strategic profitability analysis to evaluate and manage organizational units' as well as managers' performance.
  • Asset allocation techniques for investment decisions.
  • Transfer prices for business units' internal exchanges.
  • Integrated reporting systems for performance evaluation.
  • The use of accounting-based measures and value-based measures.
  • PMCS and incentive systems.
These topics are thoroughly explored and developed thorugh case studies.

Teaching methods
Click here to see the teaching methods

Assessment methods
Click here to see the assessment methods

Detailed Description of Assessment Methods

The final mark results from a weighted evaluation of a written exam, group assignments, participation in case discussions and in all class activities.


Textbooks
  • R. SIMONS, Performance Measurement and Control Systems for Implementing Strategy - Text and Cases, Prentice Hall.

Prerequisites
To feel comfortable in this class, students should be familiar with financial accounting and financial statement analysis (basic), cost accounting and managerial accounting (basic). Pre-courses are available and are highly recommended for those students who would like to catch up on or refresh the aforementioned topics.
Last change 16/05/2017 11:48

ACME (6 credits - I sem. - OB  |  SECS-P/07)
Course Director:
GIOVANNI PAOLO TOMASI

Classes: 19 (I sem.)
Instructors:
Class 19: GIOVANNI PAOLO TOMASI


Course Objectives

The course aims to explore the role of performance measurement and control systems in supporting managers in the definition of strategy in the arts and entertainment industries.
It is widely acknowledged that the survival of any firm depends on its capabilities to generate successful strategic ideas, to motivate its managers to implement strategies, to identify and manage strategic risks and, finally, to create stakeholders' trust. In these respects, performance measurement systems play a crucial role. On the one hand, through strategic planning, programming and budgeting, performance targets are set, coherently with strategic and organizational choices, and used to evaluate managers' accountability. On the other hand, reporting systems serve to communicate actual performance to both managers and stakeholders in a way that fosters learning from experience, enables redirecting ineffective behaviours and supports the generation of stakeholders' trust.


Intended Learning Outcomes
Click here to see the ILOs of the course

Course Content Summary
The course begins with the definition of the functions of performance measurement and control systems within governance processes, with particular reference to strategic and organizational choices.
Then, performance measurement and control systems are studied by highlighting their role in influencing the generation of strategic ideas and in securing their correct implementation. More specifically, the core of the course is focused on the design and use of all the control system tools and techniques that are needed in different industries such as theatres, media, sport and fashion companies.
The main topics of the course are:
  • The PMS and their role in governance processes.
  • How to design PMS consistently with successful strategies and organizational choices.
  • From financial accounting to management accounting: the different performance perspectives.
  • Profit plans, budgets and reporting: their role in managing functional performance.
  • Transfer prices, asset allocation systems and strategic reporting: their role in managing business units performance.
  • Strategic Measurement Systems and incentive systems.
  • The Balanced Scorecard.
  • Interactive and diagnostic planning and control systems.
  • The levers of control: a comprehensive view.
  • Guest speakers from different companies.

Teaching methods
Click here to see the teaching methods

Assessment methods
Click here to see the assessment methods

Detailed Description of Assessment Methods
For attending students
The final mark results from a weighed evaluation of a written exam, participation in case discussions and in all class activities.

For non attending students
The final mark results from the written exam evaluation only.
The partial exam is not scheduled.

Textbooks
  • Performance Measurement Systems, Prentice Hall, Custom Edition.
Last change 23/03/2017 10:40