Performance Measurement A Comparative Study Of Eva And Traditional Performance Measurement Techniques

Document from the year 2011 in the subject Business economics - Business Management, Corporate Governance, Post Graduate Government College (PGGC-46, Chandigarh), course: Commerce, language: English, abstract: Moullin defined performance measurement as, "Performance measurement is evaluating how well organizations are managed and the value they deliver for customers and other stakeholders". According to Kelvin, 'When you can measure what you are speaking about and express it in numbers, you know something about it'. According to Anon, 'You cannot manage what you cannot measure'. The Economic Value Added (EVA) framework developed by the Stern Stewart & Company is gradually replacing the traditional measures of financial performance due to its robustness and its immunity from "creative accounting". Fortune magazine has called it "today's hottest financial idea and getting hotter" and management guru Peter Drucker referred to it as a measure of total factor productivity. The traditional measures for performance measurement, suffer from some serious limitations which are the main reason that these traditional methods based on earnings can't be used as a reliable measure of performance measurement. Hence, there is the need of new approaches for the performance measurement which takes stakeholder's perspective into consideration and shareholders wealth into consideration. EVA is a better performance measurement tool and it has been proved in the research done on 10 companies in India. EVA has been compared with traditional techniques like ROI, ROE, EPS, NVA and MVA and the results are presented. Suggestive measures have also been given at the end and reference tables are also given. The research will e beneficial for academicians and people associated with finance.

Document from the year 2011 in the subject Business economics - Business Management, Corporate Governance, Post Graduate Government College (PGGC-46, Chandigarh), course: Commerce, language: English, abstract: Moullin defined performance measurement as, “Performance measurement is evaluating how well organizations are managed and the value they deliver for customers and other stakeholders”. According to Kelvin, ‘When you can measure what you are speaking about and express it in numbers, you know something about it’. According to Anon, ‘You cannot manage what you cannot measure’. The Economic Value Added (EVA) framework developed by the Stern Stewart & Company is gradually replacing the traditional measures of financial performance due to its robustness and its immunity from "creative accounting". Fortune magazine has called it "today's hottest financial idea and getting hotter" and management guru Peter Drucker referred to it as a measure of total factor productivity. The traditional measures for performance measurement, suffer from some serious limitations which are the main reason that these traditional methods based on earnings can’t be used as a reliable measure of performance measurement. Hence, there is the need of new approaches for the performance measurement which takes stakeholder’s perspective into consideration and shareholders wealth into consideration. EVA is a better performance measurement tool and it has been proved in the research done on 10 companies in India. EVA has been compared with traditional techniques like ROI, ROE, EPS, NVA and MVA and the results are presented. Suggestive measures have also been given at the end and reference tables are also given. The research will e beneficial for academicians and people associated with finance.

An updated look at the role of economic profit analysis in the process of wealth creation Grant explains the pivotal role of economic value added (EVA) in the theory of finance, how to measure EVA with standard accounting adjustments, how to use EVA to value companies and their stock, and how to use economic profit principles to identify wealth-creating firms, industries, and even market economies.

Do your performance measures seek primarily to detect and control undesirable activities, rather than sharing and rewarding productive behaviour? Every organisation needs to measure its performance and that of the people it employs; David Jenkins shows you how to make more productive use of such measures. For measures to be accurate and reliable there are fundamental rules that need to be applied. Ignoring or misapplying them undermines performance and impedes the achievement of the corporate goal. For any enterprise, data must be available across the whole spectrum of activity in which it is engaged. The quality of that information will depend on the way it is measured. In some commercial organisations data is regularly gathered at local level. Instead of being used at this point, it is often fed into a corporate information system which, having recycled it, issues the result in a form that does not always meet needs. In Measuring Performance, David Jenkins examines the more traditional measures of performance and highlights their shortcomings as well as assessing the merits of the alternative approaches that are currently available. The book concludes with a step-by-step guide to reviewing the effectiveness of your organisation's existing systems for measuring performance and identifying ways of improving them.

In the last two decades, Tangible User Interfaces (TUIs) have emerged as a new interface type that interlinks the digital and physical worlds. Drawing upon users' knowledge and skills of interaction with the real non-digital world, TUIs show a potential to enhance the way in which people interact with and leverage digital information. However, TUI research is still in its infancy and extensive research is required in order to fully understand the implications of tangible user interfaces, to develop technologies that further bridge the digital and the physical, and to guide TUI design with empirical knowledge. This paper examines the existing body of work on Tangible User Interfaces. We start by sketching the history of tangible user interfaces, examining the intellectual origins of this field. We then present TUIs in a broader context, survey application domains, and review frameworks and taxonomies. We also discuss conceptual foundations of TUIs including perspectives from cognitive sciences, psychology, and philosophy. Methods and technologies for designing, building, and evaluating TUIs are also addressed. Finally, we discuss the strengths and limitations of TUIs and chart directions for future research.

It's no secret that you can't improve your organization's performance without measuring it. In fact, every function, unit, process, and the organization as a whole, is built and run according to the parameters and expectations of its measurement system. So you'd better make sure you're doing it right. All too often, performance measurement creates dysfunction, whether among individuals, teams, or across entire divisions and companies. Most traditional measurement systems actually encourage unhealthy competition for personal gain, creating internal conflict and breeding distrust of performance measurement. Transforming Performance Measurement presents a breakthrough approach that will not only significantly reduce those dysfunctions, but also promote alignment with business strategy, maximize cross-enterprise integration, and help everyone to work collaboratively to drive value throughout your organization. Performance improvement thought leader Dean Spitzer explains why performance measurement should be less about calculations and analysis and more about the crucial social factors that determine how well the measurements get used. His ""socialization of measurement"" process focuses on learning and improvement from measurement, and on the importance of asking such questions as: How well do our measures reflect our business model? How successfully are they driving our strategy? What should we be measuring and not measuring? Are the right people having the right measurement discussions? Performance measurement is a dynamic process that calls for an awareness of the balance necessary between seemingly disparate ideas: the technical and the social aspects of performance measurement. For example, you need technology to manage the flood of data, but you must make sure that it supports the people who will be making decisions and taking action crucial to your organization's success. This book shows you how to design that technical-social balance into your measurement system. While it is urgent to start taking action now, transforming your organization's performance measurement system will take time. Transforming Performance Measurement gives you assessment tools to gauge where you are now and a roadmap for moving, with little or no disruption, to a more "transformational" and mature measurement system. The book also provides 34 TMAPs, Transformational Measurement Action Plans, which suggest both well-accepted and "emergent" measures (in areas such as marketing, human resources, customer service, knowledge management, productivity, information technology, research and development, costing, and more) that you can use right away. In the end, you get what you measure. If you measure the wrong things, you will take your company farther and farther away from its mission and strategic goals. Transforming Performance Measurement tells you not only what to measure, but how to do it -- and in what context -- to make a truly transformational difference in your enterprise.

Topics covered include scope of CPM, preparing for data collection, reporting and using CPM information.

This volume in the "ASPA Classics" series compiles the most influential contributions to the theory and practice of performance measurement that have been published in various journals affiliated with the American Society for Public Administration. The book includes major sections of original text along with the readings, and provides students and practitioners with a handy reference source for theory development and practice improvement in performance measurement. The coverage is broad, including methods and techniques for developing effective performance measurement systems, building performance-based management systems, and sustaining performance-based budgeting. The articles are all classics in the field that have endured the test of time and are considered 'must reads' on performance measurement.