Unit 70 - Section 4 - Understand Performance Measurement - Flashcards in BTEC National Business

Explain the relationship between business objectives and performance measures - Business Objectives

statements of specific outcomes to be achieved; aligned to the business vision and mission; shape the business strategy

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Explain the relationship between business objectives and performance measures - Performance Measures

quantitative or qualitative ways to define and describe performance; quantifiable indicator of performance; aligned to goals and objectives; manage and monitor progress towards achieving objectives

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Performance Measurement System (PMS) - Definition

a set of performance measures used to quantify efficiency and effectiveness of actions; provides information to identify the best strategies for meeting organisation goals and objectives; aligns management processes with strategic objectives

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Features of a PMS x 5 + Explain each

RSUAR - Results oriented + Selective + Useful + Accessible + Reliable & Explain each

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Key Performance Indicators (KPIs) - Definition

performance measures identified by the organisation as critical success factors in achieving its mission and objectives; relating to aspects of business that can be controlled

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How to set KPIs pt.1

establishing organisational goals and objectives; map business processes; establish roles, responsibilities and key success factors; consult with relevant stakeholders;

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How to set KPIs pt.2

Use historical data to identify performance trends; set KPIs most critical for business success; set target and review date

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Explain the tools, processes and timetable for monitoring and reporting on business performance - Business Performance - Definition

Outcomes in relation to goals; accomplishment of tasks measured against standards; actual vs. planned

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Tools and processes for monitoring and reporting on business performance x 8 & explain each

PKBBPCP - Planning and budgeting, KPIs, Balance Scorecard, Benchmarking, Performance dashboards, Customer Relationship Management (CRM), Performance appraisals

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Tools and processes for monitoring and reporting on business performance - Timetable

Timetable - depends on nature of activities; weekly reports; monthly reports; combined timeframes

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Explain the use of management accounts and management information systems in performance management - Management accounts - Definition

Accounting data; Cash Flow; Statement of Financial Position/Balance Sheet; Income Statement/Profit and Loss Account

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Explain the use of management accounts and management information systems in performance management - Management accounts - Uses

Supports decision making; helps to identify risks and consequences of actions; provides historical data to inform target setting; provides information used in performance dashboards (sales and profits ratios)

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Explain the use of management accounts and management information systems in performance management - Management Information Systems (MIS) - Definition

Computerised informationprocessing systems designed to support and improve the quality and efficiency of business operations and human decision making; systems that turn raw data into information for management levels

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Explain the use of management information systems in performance management - Management Information Systems (MIS) - Uses

Store and manage performance data; provides information to support performance evaluation; tracks progress

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Explain the distinction between outcomes and outputs - Outcomes

Changes to be achieved; hard outcomes (more observable, measurable); soft outcomes (less tangible; subjective)

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Explain the distinction between outcomes and outputs - Outputs

Result of activity; services and/or products offered; facilities provided; linked to objectives

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Unit 70 - Section 4 - Understand Performance Measurement

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Other cards in this set

Card 2

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Card 3

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Card 4

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Card 5

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