PERFORMANCE MEASUREMENT

Description

The success of any firm depends on its capabilities to generate winning strategic ideas, to motivate its managers and employees to implement strategies, to redirect ineffective decisions and actions, and to create stakeholders’ consensus. In these respects, performance measurement systems play a crucial role. On the one hand, through strategic planning, programming and budgeting, performance targets are set, coherently with strategic and organizational choices, and used to evaluate managers’ accountability. On the other hand, reporting systems serve to communicate actual performance to both managers and stakeholders in a way that fosters learning from experience, enables redirecting ineffective behaviors and supports the generation of stakeholders’ trust. Starting from such premises, the mission of this course is to explore the role of performance measurement and control systems (PM&CS) in implementing strategy and supporting governance processes in the Arts, Communication, Media and Entertainment companies. The most important topics we consider during this course are the following: The design of performance measurement and control systems consistently with strategies and organizational choices. The preparation of profit plans and their use to control and evaluate a firm’s performance. The use of strategic profitability analysis to interpret and drive organizational units’ as well as managers’ performance. The application of asset allocation techniques that aid making decisions on investments. The use of transfer prices in managing business units of multinational companies. The definition and use of non-financial performance indicators and the design of integrated reporting systems. The calculation and application of value-based measures. The identification of the behavioural and organisational consequences of using performance measurement and performance management techniques for motivating managers and employees. Exchange/course-load context: The official incoming exchange catalogue states that 30xxx codes refer to undergraduate courses, 20xxx and 21xxx codes refer to graduate courses, and 50xxx codes refer to the Integrated Master of Arts in Law. Undergraduate exchange students are allowed to select undergraduate-level courses only; graduate students can choose both undergraduate and graduate level courses. Bocconi credits are ECTS-equivalent. Each Bocconi credit corresponds to 25 hours of workload, including 8 lecture hours.