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Course 2021-2022 a.y.

20178 - MODELLI E SISTEMI DI PIANIFICAZIONE E CONTROLLO / PERFORMANCE MEASUREMENT AND CONTROL SYSTEMS

AFC
Department of Accounting


For the instruction language of the course see class group/s below

Go to class group/s: 11 - 12 - 13

AFC (10 credits - II sem. - OB  |  SECS-P/07)
Course Director:
ANGELO DITILLO

Classi: 11 (II sem.) - 12 (II sem.)
Docenti responsabili delle classi:
Classe 11: MASSIMO AIELLI, Classe 12: LUCA GHEZZI

Classe/i impartita/e in lingua italiana

Classes: 13 (II sem.)
Instructors:
Class 13: ANGELO DITILLO

Class group/s taught in English

Suggested background knowledge

To feel confortable in this course, you should be familar with financial accounting and cost accounting. It is recommended to attend the management accounting precourse.


Mission & Content Summary
MISSION

This course aims to explore the role of data analytics and performance measurement and control levers in implementing strategy and supporting governance processes. 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, accounting information and 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, cost accounting and reporting systems serve to communicate to both managers and stakeholders actual performance in a way that fosters learning from experience, enables redirecting ineffective behaviours and supports the generation of stakeholders’ trust.

CONTENT SUMMARY
  1. The first part of the course focuses on digital transformation and costing systems and on the new technologies used to support them.
    • First, there is an examination of the technological transformation and how it is impacting firms.
    • Second, attention is dedicated to the design and functioning of cost accounting systems, as essential tools for processing cost information for performance measurement and control activities.
  2. In the second part of the course, the attention is on Performance Measurement and Control Systems.
    • In particular, the focus is on the design and use of profit plans, strategic profitability analysis, asset allocation systems, transfer pricing, divisional performance measurement, reporting systems and incentives, with a presentation of the new technologies that support data analytics (e.g. Neural Networks, Tableau).
    • A broader view of performance measurement and control is illustrated by presenting situations where accounting controls per se are not effective. This allows discussion about topics such as: the use of non financial performance indicators, the importance of corporate values and value systems, the role of business conduct and strategic boundaries and the link between non-financial incentives and motivation.
  3. Finally, in the third part some attention is dedicated to the specifics of costing, performance measurement and control systems in professional service firms (e.g. law firms, engineering companies, consulting firms...).

Intended Learning Outcomes (ILO)
KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
  • Describe digital transformation and how it is impacting firms.
  • Illustrate  the functioning of a cost accounting system.
  • Explain how performance measurement and control systems are linked to overall organisation strategy and organisational choices.
  • Describe profit plans and illustrate how to use them to control and evaluate organisational performance.
  • Explain the role of transfer prices in managing business units.
  • Identify non-financial performance measures, and understand the inter-relationships between different performance measures, including those focused on ESG dimensions.
  • Express the behavioural and organisational consequences of using data analytics and performance management techniques.
  • Distinguish the specifics of performance measurement and control systems in professional service firms.
APPLYING KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...

 

 

  • Interpret the digital transformation that firms are facing.
  • Design a cost accounting system.
  • Record the key transactions in the cost accounting system and evaluate the profitability of products.
  • Show how performance measurement and control systems are linked to overall organisation strategy and organisational choices.
  • Prepare profit plans and use them to control and evaluate organisational performance.
  • Calculate transfer prices in managing business units.
  • Develop non-financial performance measures, and discuss different performance measures,including those focused on ESG dimensions. 
  • Use data analytics software (eg overview of Neural Networks,Tableau).
  • Predict the behavioural and organisational consequences of using performance measurement and performance management techniques.
  • Design performance measurement and control systems in professional service firms.

Teaching methods
  • Face-to-face lectures
  • Online lectures
  • Guest speaker's talks (in class or in distance)
  • Exercises (exercises, database, software etc.)
  • Case studies /Incidents (traditional, online)
  • Group assignments
  • Interactive class activities (role playing, business game, simulation, online forum, instant polls)
DETAILS
  • Lectures aim at presenting the key concepts and models related to the design and functioning of performance measurement and control systems.
  • The invited speakers illustrate the specifics of the performance measurement and control systems adopted in their companies and explain the rationale of their functioning.
  • Exercises are solved in class to illustrate how to use the methodologies presented from a theoretical point of view, the simulations are used to show the iterative nature and the processes linked to the use of performance measurement and control systems.
  • The case studies are used to illustrate the contextual variables that should be considered when designing and using performance measurement and control systems. 
  • The group assignments are used to understand the complexity of practices related to performance measurement and control systems.
  • The role play is used to illustrate the multifaceted nature and the processes related to the the use of asset allocation systems.

Assessment methods
  Continuous assessment Partial exams General exam
  • Written individual exam (traditional/online)
  •   x x
  • Group assignment (report, exercise, presentation, project work etc.)
  • x    
    ATTENDING STUDENTS

    2 partial written exams

    1 general written exam

    NOT ATTENDING STUDENTS

    1 general written exam


    Teaching materials
    ATTENDING STUDENTS

    This will be indicated in the syllabus at the beginning of the course.

    NOT ATTENDING STUDENTS

    This will be indicated in the syllabus at the beginning of the course.

    Last change 24/12/2021 15:01