Control techniques

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Control techniques

  1. 1. ControlTechniques Powerpoint Templates Page 1
  2. 2. Stakeholder Measure Powerpoint Templates Page 2
  3. 3. Balanced Score Card Robert kaplan and David Nortons organizational performance management tool A strategic planning and management system used to align business activities to the vision statement of an organization. A Balanced Scorecard attempts to translate the sometimes vague, pious hopes of a companys vision/mission statement into the practicalities of managing the business better at every level. Requirements •The companys mission statement •The companys strategic plan/vision •Then •The financial status of the organization •How the organization is currently structured and operating •The level of expertise of their employees •Customer satisfaction level Powerpoint Templates Page 3
  4. 4. Powerpoint Templates Page 4
  5. 5. Balanced Scorecard - factors examples Department Areas Finance Return On Investment Cash Flow Return on Capital Employed Financial Results (Quarterly/Yearly) Internal Business Processes Number of activities per function Duplicate activities across functions Process alignment (is the right process in the right department?) Process bottlenecks Process automation Learning & Growth Is there the correct level of expertise for the job? Employee turnover Job satisfaction Training/Learning opportunities Customer Delivery performance to customer Quality performance for customer Customer satisfaction rate Customer percentage of market Customer retention rate Powerpoint Templates Page 5
  6. 6. A Balanced Scorecard should result in: Improved processes Motivated/educated employees Enhanced information systems Monitored progress Greater customer satisfaction Increased financial usage Powerpoint Templates Page 6
  7. 7. AccountingMeasures Powerpoint Templates Page 7
  8. 8. ROIA performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. Powerpoint Templates Page 8
  9. 9. Powerpoint Templates Page 9
  10. 10. Economic & Financial Measures Powerpoint Templates Page 10
  11. 11. Economic Value Added• EVA is a measure of financial performance based on the context that all capital has a cost and that earning more than the cost of capital creates value for shareholders. The real profit that is of interest to investors is the profit after deducting the capital costs. This profit figure is often called Economic Value Added, EVA (or Economic Profit or Residual Income • The formula for calculating EVA is as follows: = Net Operating Profit After Taxes (NOPAT) - (Capital * Cost of Capital) Powerpoint Templates Page 11
  12. 12. Market Value Added• The difference between the current market value of a firm and the capital contributed by investors.• If MVA is positive, the firm has added value.• If it is negative, the firm has destroyed value.• The amount of value added needs to be greater than the firms investors could have achieved investing in the market portfolio.• Measure of wealth a company has created for its investors• Cumulative measure of corporate performance• Primary objective of co.- Maximizing MVA • MVA = [(Shares outstanding x Stock price) + Market value of preferred stock+ Market value of debt] – Total capital Powerpoint Templates Page 12
  13. 13. Queries ??? Powerpoint Templates Page 13

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