Business Performance Management

1 Credit = 1 Meal
Community Objective Mealionaire Program 1 Credit = 1 Meal Timeline
Login
create an account

Forgot Password ?

Business Performance Management

Wednesday, May 13, 2020

4 (2)

Presenter :Ross Maynard

Company :Ideas2Action Process Excellence Ltd

You have completed only 0% of the video. Please continue watching the video.
Please don’t fast forward or alter the cursor of the video. You must watch entire video to get your CPE credits.

Before starting this self study progarm, please go through the Instructional Document.

Download

Course Details

Overview of Topics

Concepts in Business Performance Management6 mins
The Purpose of Management9 mins
Exercise: Mission and Objectives14 mins
The Performance Pyramid27 mins
The Balanced Scorecard33 mins
The Lean Philosophy27 mins
Benefits Realisation30 mins
Measuring Managing and Improving Business Performance58 mins
Analysing Performance Data64 mins
Improving Business Performance68 mins
Nightingale Care84 mins

Course Description

Business Performance Management is the approach that an organisation uses to guide its activities towards established goals.

The organisation’s Mission defines its purpose, and its strategy lays out the plan for achieving those goals. Business Performance Management is about setting the performance measures to gauge progress towards the goals; analysing and presenting performance data; and planning actions necessary to keep the organisation on track towards its goals

These are the topics covered in this course.

The course is divided into four parts:

Part 1: Concepts in Managing Business Performance

Part 2: Models of Business Performance Management

Part 3: Measuring, Managing and Improving Business Performance

Part 4: The Business Performance Management Exercise

The key topics covered in this course include:

A brief history of Business Performance Management
Principles of Business Performance Management
Models of Business Performance Management
Critical Success Factors and Performance Measures
From Organisational Measures to Operational Metrics
Analysing Performance Data
Improving Business Performance

There are examples, exercises, projects and tests throughout the course to aid your learning

Thank you for your interest in this course. I hope you enjoy it"

Learning objectives

To recall the Definition and Function of Business Performance Management
To identify the various Activities in Business Performance Management
To recall the History of Business Performance Management
To identify the Modern Models of Business Performance Management

About Presenter

Ross Maynard

Managing Director,Ideas2Action Process Excellence Ltd

ross@ideas2action.co.uk

My philosophy is to inspire, challenge and support change. I have nearly 30 years experience as a business author and consultant. I write the content of online business courses for Nelson Croom Ltd - www.accountingcpd.net.

More courses are in production for publication in 2019, including two bringing the Agile philosophy to planning and accounting. I also write and deliver webinars for clients, with the "Innovation Masterclass" and "Creative Problem Solving" for ACCA in the summer. As a consultant, I specialise in process improvement based on the Lean and Agile philosophies. I facilitate improvement teams and provide expertise in performance measurement and management; problem solving; and process mapping.

Ideas2Action Process Excellence Ltd

ideas2action.co.uk

Ideas into Action was founded in 1997 by Ross Maynard. Ross is a Fellow of the Chartered Institute of Management Accountants with over 20 years experience in organisational development with organisations of all sizes. The business is incorporated as Ideas2Action Process Excellence Ltd, registration number SC523801. We specialise in process analysis and improvement and lean finance, offering training, consultancy and facilitation of process improvement teams.

Ross is author of “Successful Business Growth” published by Hodder and Stoughton, in 1998; as well as many published articles on business improvement and lean management. Ross is an NLP Master Practitioner.

Review Questions

Question 1 : 00:15
Question 2 : 00:30
Question 3 : 00:45
Question 4 : 01:05
Question 5 : 01:20
Question 6 : 01:40

Review Questions
Final Quiz

The use of a hierarchy of financial metrics for business performance management has declined significantly in the last 30 years. Identify one reason for this
- Return on investment is no longer the indicator of choice for shareholders
  Return on investment is still a key metric for shareholders and investors, and is still important in among a balance of performance measures
- Return on Investment (or Return on Net Assets) are only relevant to manufacturing companies and most businesses nowadays are service providers
  ROI and RONA are relevant to all types of commercial business - manufacturing and services and everything in between. However, financial metrics alone are not enough and a mix of measures is needed
- The increasing prominence of venture capital and hedge fund investors has moved the agenda onto measures of environmental protection
  Pressure from ethical investors, and from the public, has increased the importance of measures of environmental performance in businesses. There are ethical investment funds but these have not been the main drivers of this change - public and government pressure have played a larger role
- Businesses need to manage and report performance in a wide range of areas nowadays. Financial metrics alone are not enough
  Business performance encompasses a wide range of issues and, therefore, requires metrics in a range of performance areas - not just financial
Management by Objectives was hugely popular from the 1950s to the 1980s. However, today it is little used. Identify one reason for the decline in its use
- The key indicator in MBO is return on capital and this is too restrictive in the modern business environment
  Return on capital is not the key indicator in MBO. It is for the organisation to decide what its high-level indicators are
- The management style of many organisations means that the aim of MBO of agreeing targets equally between management and staff is impossible to achieve
  One of the main problems with MBO is that the balance of power between management and staff is not equal. Management hold the power and, therefore, the targets inevitably end up being \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\"decided\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\" by management, with employees feeling obliged to \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\"agree\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\"
- For large organisations it is difficult to summarise strategy in 16 to 20 measures
  This is a fair criticism of the Balanced Scorecard but is not relevant to Management by Objectives
- Targets are always demotivating to the individuals involved with the result that they are rarely met
  Targets can be demotivating, or they can be motivating, much depends on the way in which they are set and the motivation and ability of the individual to achieve them
Identify one of the key benefits of the Benefits Realisation approach to Business Performance Management
- Focussing on the benefits a business process must deliver gives a broader perspective than just looking at the process as it currently operates meaning that a better range of metrics and a more holistic view of management and improvement can be developed
  Benefits Realisation starts with the end in mind - what outcomes the stakeholders want to achieve. Then it works to design and manage the process to maximise those benefits. This gives a balanced outcome focussed approach to Business Performance Management
- It creates a hierarchy of balanced objectives
  Benefits Realisation is not concerned with a hierarchy of objectives but more on the appropriate objectives for a business process to meet stakeholder needs
- It sets delivering Customer Value as the primary purpose of the business process
  Improving customer value is one of the key objectives of the lean philosophy and is likely to be important in many Benefits Realisation models. However, Benefits Realisation does not have a fixed primary purpose
- By focussing improvement activity on the flow of work through a business process it drives growth in profitability
  The lean philosophy focusses on improving the flow of work through a business process in order to improve its efficiency and, therefore, profitability. It is not a specific focus of Benefits Realisation
Identify one of the main benefits of presenting performance data as a time series
- The graphical presentation means there is no need for budgets or targets
  Humans are goal-setting organisms and it is natural to have targets in most settings - as long as we are willing to adapt flexibly as circumstances change. Targets and budgets can be used in conjunction with presenting performance data as a time series
- There is less need to involve accountants in reporting and analysis
  For good or ill, the accountants and finance team are going to be key players in the analysis and presentation of performance data. They are vital for decision support
- Showing data over time allows trends and unusual patterns to be identified so that their cause can be analysed
  The main benefit of using a time-series to present performance data is that we see performance over time - peaks and troughs and patterns. The approach makes performance very clearly visible and this allows the team to identify areas of concern and investigate their causes
- Comparing the line of actual performance with the average line shows when things are going well or badly
  The average line is simply that - an average of all the data - it represents neither good nor bad performance merely the amalgam of everything that has happened. What is important is actual performance and the causes of that performance - why is it strong one day or one week and poor the next? We should not place too much emphasis on the average line
Your company is struggling to achieve its promised 48-hour delivery time to customers in the north of the country. What would you advise the management team to do first?
- Change the advertised delivery time
  One of the outcomes of work to review the delivery process might be to change the advertised delivery time, but this is not the first action the management team should do
- Charge a premium to northern customers for an express service
  One of the outcomes of work to review the delivery process might be to change the advertised delivery time, but this is not the first action the management team should do. Even then, before taking this action, the likely impact on customers would need to be assessed as it might consider customers to consider competitors\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\' offerings
- Study the delivery process and understand the points at which delays occur, and the reasons behind them. Then develop improvement plans
  In order to identify actions that will improve the performance of a business process or activity, the team first need to understand the nature of those issues and their causes. This requires them to study the delivery process to identify and understand the points at which delays occur and the reasons behind them. Then they can identify improvement actions which will resolve the problems
- Prepare a business plan to examine the feasibility of a northern delivery hub
  This might be one option the team want to consider once they have examined the delivery process and the issues that cause delays for customers, but it is not the first action the management team should take
Why is it important that data for a performance measure should be able to be collected quickly, easily and consistently?
- So that problems can be identified promptly and timely corrective action taken
  The main reason for collecting performance data quickly, easily and consistently is so that it can be analysed and any issues or problems identified promptly. This allows corrective action to put be in place quickly minimising the impact of performance problems
- To minimise the size of the data collection team that need to be employed
  In most circumstances it is the people who work in the process who should collect the data. They need to be trained in order to record the information consistently but there is no need for a separate data collection team
- To speed up period-end close
  Most of the performance data collected will not be needed for the period-end close - which is mainly about financial transactions. The data collection, therefore, will have little impact on the speed of period-end close
- Because employees wont understand more complex metrics
  With training and coaching employees can understand more complex metrics and how they impact performance

Minimum 70% Questions answer should be right.

Which sentence best describes Business Performance Management?:
- The tools shareholders use to monitor the performance of their investment
- The procedures that make up the management accountant’s toolkit
- The way an organisation guides its operation towards established goals
- The structure of monthly reporting in an organisation
The purpose and goals of an organisation are, typically, set out in two documents. What are they?
- Articles of Association and Memorandum of Association
- Certificate of Incorporation and Certificate of Registration
- Mission and Strategy
- Strategy and Annual Report
What is the primary purpose of an organisation’s Mission Statement?
- To define the top-level performance indicators for the organisation
- To define the organisation’s purpose and overall goals
- To explain the organisation’s Balanced Scorecard objectives
- To show how the organisation will benefit shareholders and owners
Which phrase best describes an organisation’s strategy?
- The methods the organisation will use to monitor performance
- The document sent to potential investors when raising capital
- The measures, metrics and indicators the organisation will use to assess performance
- The plan of action designed to achieve the organisation’s goals
The concept of return on investment and linked cascade of financial metrics was developed in the 1920’s. Which company pioneered this approach?
- Du Pont
- General Motors
- Josiah Wedgewood and Company
- Springfield Armory
Which phrase best describes Lean Management?
- An approach to objective setting and monitoring where the organization’s employees set the metrics and the targets
- An approach to performance management that focusses on reducing labour costs in a process
- An approach to performance management that focusses on the flow of work through business processes
- The element of the Balanced Scorecard that focusses on customer satisfaction
Which sentence best describes a Critical Success Factor?
- An action or outcome that is an essential step to achieving an organisation objective
- A performance measure for a manufacturing process
- A key component of an organisation’s Mission Statement
- The headline actions in the organisation’s Strategy
What is the purpose of Process Output Measures?
- To link the financial results of a business process to the overall objective of return on net assets
- To provide real-time information on the operation of a business process
- To show how successfully the organisation is meeting its Mission Statement
- To monitor the performance of a business process and guide improvement activity
What is the purpose of In-Process Measures?
- To identify the drivers of profitability in a business process
- To allow accountants to be embedded in operational teams and drive a focus on cost management
- To provide real-time information on the operation of a business process to encourage corrective action as soon as problems arise
- To show the long-term impact of business operations on Strategic Objectives
What is a Problem Statement?
- A statement which summarises and defines the outcome the improvement team are aiming to achieve
- A statement which summarises and defines the problem being addressed in a way which everyone can understand
- A statement which summarises the root causes of the problems being addressed
- A statement that identifies the barriers that are affecting performance

FAQ

myCPE self-study courses are online.
The self-study format allows you to access the material online 24/7 and study at your own pace.
As per NASBA guidelines, you have one year from date of registration to complete each program.
Complete your final exam at any time and get CPE Credit instantly. You can retake the exam multiple times without any additional charges.
Course have minimum passing score of 70% and test takers will not be provided feedback on failed exams.
Upon achieving a passing score, test takers will be notified of the correct answers to the questions missed.
These are Live recorded presentations converted into Self Study (On-Demand Videos).

Refund/Cancellation Policy

For more information regarding refund, complaint and program cancellation policies, please contact our offices at 646-688-5128
Please email to help@my-cpe.com in case of any self study program queries.

Reviews

(2)

100%

RB

Ryan Becker , CPA

Jun 24th 2020

It was a great course but the technical glitch I had with the video was very frustrating.

NASBA Approved

MY-CPE LLC, 1600 Highway 6 South, Suite 250, Sugar Land, TX, 77478

MY-CPE LLC (Sponsor Id#: 143597) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org.

On-Demand Webinars

ADVANCED 1031 EXCHANGE AND DELAWARE STATUTORY TRUSTS: TAX SAVINGS TO WEALTH CREATION

Friday, July 10, 2020 View Details/Register

REVISITING STATE AND LOCAL PAYROLL AND EMPLOYMENT TAXES IN LIGHT OF COVID-19

Friday, July 10, 2020 View Details/Register

FORM W-4 AND OTHER PAYROLL AND FORM 1099 UPDATES

Thursday, July 09, 2020 View Details/Register

THE IRS OFFER IN COMPROMISE PROGRAM

Tuesday, July 07, 2020 View Details/Register

BUSINESS ACTIVITY TAXES – WHERE ARE BUSINESSES AND THEIR OWNERS REQUIRED TO FILE AND PAY STATE INCOME TAXES?

Tuesday, July 07, 2020 View Details/Register

MULTISTATE SALES TAX COLLECTION – NEXUS CONSIDERATIONS AND EXEMPTION CERTIFICATE COMPLIANCE

Tuesday, July 07, 2020 View Details/Register

CARES ACT: NOL CHANGES (UPDATED LATEST)

Friday, July 03, 2020 View Details/Register

UNDERSTANDING & ADOPTING THE NEW REVENUE RECOGNITION STANDARD

Thursday, July 02, 2020 View Details/Register

FRAUD ESSENTIALS: WHO? HOW? WHY? WHAT?

Thursday, July 02, 2020 View Details/Register

PRACTICAL APPROACHES TO PERFORMING EFFICIENT & EFFECTIVE SSARS ENGAGEMENTS (COMPILATION AND REVIEW)

Thursday, July 02, 2020 View Details/Register

ARE YOU INDEPENDENT WHEN YOU NEED TO BE? UNDERSTANDING RECENT CHANGES TO THE AICPA CODE OF PROFESSIONAL CONDUCT

Thursday, July 02, 2020 View Details/Register

TAX UPDATE : FCCA 2020 & SECURE ACT. (COVID-19)

Friday, June 26, 2020 View Details/Register

IRS FORM 1099 REPORTING REQ. INCLUDING UPDATES ON FORM 1099-NEC (LATEST 2020)

Thursday, June 25, 2020 View Details/Register

FEDERAL TAX UPDATE: COMPREHENSIVE INDIVIDUAL TAX (FORM 1040)

Thursday, June 25, 2020 View Details/Register

A BASIC ETHICS GUIDEBOOK FOR UTAH CPAS

Thursday, June 25, 2020 View Details/Register

Cost $20
CPE Credits 2
Subject Area Business Management and Organization
Course Level Basic
Instructional Method QAS Self Study
Prerequisites None
Advanced Preparation None
Recorded Date May 13 ,2020
Published Date May 13 ,2020
Who should attend? Accountant CPA - Small Firm CPA - Mid Size Firm Accounting Firm Young CPA CPA in Business Entrepreneurial CPA Tax Accountant (Industry) Accounting Practice Owners VP Accounts Accounts Director Accounting Managers Staff of Accounting Firm
Handout Material Download
Key Terms Download

On-Demand Webinars

ADVANCED 1031 EXCHANGE AND DELAWARE STATUTORY TRUSTS: TAX SAVINGS TO WEALTH CREATION

Friday, July 10, 2020 View Details/Register

REVISITING STATE AND LOCAL PAYROLL AND EMPLOYMENT TAXES IN LIGHT OF COVID-19

Friday, July 10, 2020 View Details/Register

FORM W-4 AND OTHER PAYROLL AND FORM 1099 UPDATES

Thursday, July 09, 2020 View Details/Register

THE IRS OFFER IN COMPROMISE PROGRAM

Tuesday, July 07, 2020 View Details/Register

BUSINESS ACTIVITY TAXES – WHERE ARE BUSINESSES AND THEIR OWNERS REQUIRED TO FILE AND PAY STATE INCOME TAXES?

Tuesday, July 07, 2020 View Details/Register

MULTISTATE SALES TAX COLLECTION – NEXUS CONSIDERATIONS AND EXEMPTION CERTIFICATE COMPLIANCE

Tuesday, July 07, 2020 View Details/Register

CARES ACT: NOL CHANGES (UPDATED LATEST)

Friday, July 03, 2020 View Details/Register

UNDERSTANDING & ADOPTING THE NEW REVENUE RECOGNITION STANDARD

Thursday, July 02, 2020 View Details/Register

FRAUD ESSENTIALS: WHO? HOW? WHY? WHAT?

Thursday, July 02, 2020 View Details/Register

PRACTICAL APPROACHES TO PERFORMING EFFICIENT & EFFECTIVE SSARS ENGAGEMENTS (COMPILATION AND REVIEW)

Thursday, July 02, 2020 View Details/Register

ARE YOU INDEPENDENT WHEN YOU NEED TO BE? UNDERSTANDING RECENT CHANGES TO THE AICPA CODE OF PROFESSIONAL CONDUCT

Thursday, July 02, 2020 View Details/Register

TAX UPDATE : FCCA 2020 & SECURE ACT. (COVID-19)

Friday, June 26, 2020 View Details/Register

IRS FORM 1099 REPORTING REQ. INCLUDING UPDATES ON FORM 1099-NEC (LATEST 2020)

Thursday, June 25, 2020 View Details/Register

FEDERAL TAX UPDATE: COMPREHENSIVE INDIVIDUAL TAX (FORM 1040)

Thursday, June 25, 2020 View Details/Register