2016年ACCA知識(shí)點(diǎn)：PERFORMANCE INDICATORS 6

ACCA P3 考試：PERFORMANCE INDICATORS 6

Fitzgerald and Moon building blocks

Section E(1) of the P5 study guide mentions three specific approaches or models:

·Balanced scorecard

·Performance pyramid

·Fitzgerald's and Moon's building blocks

The balanced scorecard approach is probably the best known but all seek to ensure that the net is thrown wide when designing performance measures for organisations so that factors such as quality, innovation, flexibility, stakeholder performance, and delivery and cycle time are listed as being important aspects of performance. Whenever an aspect of performance is important then a performance measure should be designed and used.

The Fitzgerald and Moon model is worth a specific mention here as it is the only model which explicitly links performance measures to the individuals responsible for the performance.

The model first sets out the dimensions (split into results and determinants) where key performance indicators should be established. You will see there is a mix of financial and non-financial, and both quantitative and qualitative:

·Results

·Financial performance

·Competitive performance

·Determinants

·Quality

·Flexibility

·Resource utilisation

·Innovation

The model then suggests standards for KPIs:

·Ownership: refers to the idea that KPIs will be taken more seriously if staff have a say in setting targets. Staff will be more committed and will better understand why that KPI is needed.

·Achievability: if KPIs are frequently and obviously not achievable then motivation is harmed. Why would staff put in extra effort to try to achieve a target (and bonus) if they believe failure is inevitable.

·Fairness: everyone should be set similarly challenging objectives and it is essential that allowance should be made for uncontrollable events. Managers should not be penalised for events that are completely outside everyone's control (for example, a natural disaster) or which is someone else's fault.

The model then suggests how employee rewards should be set up to encourage employees to achieve the KPI targets:

·Clarity: exactly how does performance translate into a reward?

·Motivation: the reward must be both desirable and must be perceived as achievable if it is to be motivating.

·Controllable: achievement of the KPI giving rise to the reward should be something the manager can influence and control.

Ken Garrett is a freelance lecturer and writer