This book presents the fundamental elements of performance management, with a focus on the managerial dimension. It explains how management control techniques should be designed and built, based on key principles which are determined by their intended purpose and functions.
It provides clear, structured analytical frameworks to guide the construction of performance management systems and to analyse business practices, thus striking a balance between an operational approach and a critical view of systems.
The authors have chosen to examine three main areas of management control:
- The definition of performance and the choice of systems for performance measurement: Part I explores the notion of performance from a qualitative point of view and distinguishes between company-wide measurement systems (financial indicators, company-wide performance dashboards and scorecards) and local-level measurement systems (responsibility accounting, cost accounting, responsibility centre dashboards).
- The dynamic management of performance: Part II presents the goals and principles of the planning process, which shape the basic management techniques (budget, operational and strategic plans). It then examines different methods for results analysis and success factors.
- The people involved in the management control process: Part III highlights the complementary nature of the roles of managers and controllers.
Numerous examples and case studies drawn from a variety of business sectors are provided to illustrate the different topics covered. Each chapter is built on clear and precise definitions opening with a comprehensive list of 'key messages'.
Two cross-functional case studies taken from real-world companies (an automobile parts supplier and a waste management company) make up the last two chapters and provide concrete illustrations of the issues explored.
Olivier Saulpic,Associate professor at ESCP Europe
PhD in economics, consultant, former industrial director and director of management control.
Research areas: Management control system engineering, appropriation of management control tools by managers, planning process renewal, theory and teaching of management control.
Françoise Giraud,Associate Professor at ESCP Europe
PhD in management science, experience in international audit and consultancy firms.
Research areas: behavioural aspects of management control, links between performance measurement systems and evaluation of managerial performances, performance measurement for responsibility centres, dashboards.
Philippe Zarlowski: Associate professor at ESCP Europe
PhD in management science, management experience in several academic organisations. Design, coordination and teaching of training modules and programmes aimed at professionals and students.
Research areas: Spread and implementation of new performance measurement systems in public and private organisations.
François Fourcade,Associate professor at ESCP Europe
PhD in Management science. Former industry and purchasing manager in the automobile sector in France and abroad. Scientific director at CIRPP, a research centre in pedagogical innovation. Associate researcher at CRG (Ecole Polytechnique).
Research areas: Innovation management and strategy, management control tools.
Marie-Anne Lorain: Professor of management control at ESCP Europe
PhD in management science, former director of management control and financial controller in the retail sector.
Research areas: Budget management and rolling forecasts, performance management tools.