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E3 CH8 The performance measurement matrix

E3 - Strategic Management ch8 the performance measurement matrix Page 1 Chapter 8 The performance measurement matrix Chapter learning objectives: Lead Component Indicative syllabus content Evaluate the tools and techniques of strategy implementation. (a) Evaluate alternative models of strategic performance measurement in a range of business contexts. Alternative strategic business unit (SBU) performance measures, including shareholder value added (SVA) and economic value added (EVA). Alternative models of measuring strategic performance ( the Balanced Scorecard (BSC) and the performance pyramid as strategic evaluation tools). (b) Recommend solutions to problems in strategic performance measurement Setting appropriate strategic targets through the use of a range of non-financial measures of strategic performance and their interaction with financial ones. Evaluation of strategic targets through the development of critical success factors (CSFs).

identify “Critical Success Factors” that are determined by the strategy. Critical success factors are a limited number of areas in which results, if they are satisfactory, will ensure successful competitive performance for the organisation. • CSFs tie into the organisation’s overall strategy.

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