Measuring Business Performance

Module Title	Measuring Business Performance
Module Code	25-6042-00L
Semester of Delivery	See Module Information Table
Mandatory/Elective/Option	See Module Information Table
Level	20
Credit Points	6

Assessment Mode Weighting	Coursework	25%
	Examination	75%
	NOTE: The University is currently reviewing its assessment regulations for 2008/09 and the assessment package for this module may be subject to change.
Pre-requisites	Business Accounting or equivalent
Co-requisites	None

Class Contact Hours
Average Weekly	1.5

Directed Learning
Average Weekly	5

Module Leader	John Cullen
	Sheffield Business School
Module Banding	A
Approval Status	Validated

Rationale

It is important for managers within organisations to identify whether the organisation is achieving its strategic objectives, to understand how others may view the organisation's progress, and to be able to assess the performance of competitors or other organisations. Performance measurement needs to recognise both financial and non-financial measures of performance and be balanced in its approach. Used appropriately, performance measurement systems can be the foundation of an integrated and iterative strategic management system.

Summary of Aims

To develop the ability to evaluate financial statements and performance measures, alongside non financial measures of performance, which together provide a balanced approach to identifying whether an organisation is achieving it's strategic objectives.

Anticipated Learning Outcomes

On completion of the module, the student should be able to:

Discuss performance measurement links with strategy and identify and critically evaluate traditional measures of performance.
Identify and develop the concept of the balanced scorecard and similar models, which combine both financial and non-financial measures of performance.
Identify possible dysfunctional behaviour associated with performance measurement and analyse suggestions aimed at mitigating possible dysfunctional behaviour
Explain and discuss alternative approaches to financial statement analysis and consider how analysis might be affected or influenced by creative approaches to corporate reporting.
Apply appropriate analytical techniques and / or academic frameworks to case study or practical examples, using appropriate data and literature search

Assessment and Feedback Strategy

Students will be provided with feedback on their progress in achieving the desired learning outcomes throughout the module via a combination of normal seminar activities. Elements of learning outcomes requiring literary and data search and analysis, or extended case-study analysis, will be assessed by way of coursework. Elements of learning outcomes requiring skills of critical analysis of conceptual propositions or application to practice will be assessed by a final, time-constrained, examination which will normally be linked to a case study of a major corporation.

Module Assessment Criteria

Learning Outcome	Assessment Criterion	Level descriptors
Learning Outcome	Assessment Criterion	fail	PASS	2.2	2.1	First
Outcome 1	Coursework and /or examination	Poor knowledge of topic (eg concepts, definitions); Inadequate review of key issues from literature;	Limited knowledge of topic; Description (but limited consideration) of key issues from literature;	Clear knowledge of topic; Clear grasp and review of key issues from literature;	Critical consideration of literature; Critical and perceptive knowledge of topic;	Excellent knowledge and perceptive critique of concepts and literature; Excellent and perceptive conclusion
Outcome 2	Coursework and / or examination	Poor knowledge of topic (eg concepts, definitions); Inadequate review of key issues from literature;	Limited knowledge of topic; Description (but limited consideration) of key issues from literature;	Clear knowledge of topic; Clear grasp and review of key issues from literature;	Critical consideration of literature; Critical and perceptive knowledge of topic;	Excellent knowledge and perceptive critique of concepts and literature; Excellent and perceptive conclusion
Outcome 3	Coursework and / or examination	Poor knowledge of topic (eg concepts, definitions); Inadequate review of key issues from literature;	Limited knowledge of topic; Description (but limited consideration) of key issues from literature;	Clear knowledge of topic; Clear grasp and review of key issues from literature;	Critical consideration of literature; Critical and perceptive knowledge of topic;	Excellent knowledge and perceptive critique of concepts and literature; Excellent and perceptive conclusion
Outcome 4	Coursework and / or examination	Poor knowledge of topic (eg concepts, definitions); Inadequate review of key issues from literature;	Limited knowledge of topic; Description (but limited consideration) of key issues from literature;	Clear knowledge of topic; Clear grasp and review of key issues from literature;	Critical consideration of literature; Critical and perceptive knowledge of topic;	Excellent knowledge and perceptive critique of concepts and literature; Excellent and perceptive conclusion
Outcome 5	Coursework and examination	Inadequate application of theory to practice Inadequate analysis and failure to identify key issues Little or no evidence of data gathering or literature search.	Limited application of theory to practice Identification of some issues but commentary tending to be descriptive rather than analytical Limited evidence of data gathering or literature search.	A reasoned attempt to apply theoretical models to practice Consistent analysis and identification of key issues Good evidence of data gathering or literature search.	Critical and perceptive application of theoretical models to practice Critical and perceptive analysis and identification of issues and evidence Evidence of good use and breadth of data gathering or literature search	Excellent and perceptive application of theoretical models to practice Perceptive and focused analysis of key issues, with critical insight Excellent use and breadth of data gathering or literature search

Teaching and Learning Strategy and Methods

Keynote lectures will be supplemented and supported by seminars at which case studies and directed readings will be analysed.

Indicative Content

The link between performance measurement systems and strategy - the role of performance measurement in the development of an integrated and iterative strategic management system.
The concept of the balanced scorecard - financial perspective, customer perspective, internal business perspective and the innovation and learning perspective. Develop the concept that the scorecard is a management system aimed at streamlining and focusing strategy in a way that can lead to breakthrough competitive performance. Use of different, but similar frameworks, to analyse performance in different commercial contexts.
Ratio analysis, cash flow analysis, stock market analysis and strategic financial analysis - used to critically evaluate the performance of an organisation and it's competitors.
The effects of accounting choice and creative accounting on financial statements (and the analysis thereof)
Measures of financial performance - return on investment, residual income and shareholder value analysis.
Customer perspective - examples; on time delivery, customer partnerships, time spent with customer.
Internal business perspective - examples; new product introduction, productivity, capacity versus competition.
Innovation and learning perspective - examples; new product lead times, employee suggestions, staff development.
Dysfunctional aspects of performance measurement systems and the identification of ways in which such dysfunctionality can be addressed

Sheffield Business School, Howard Street, City Campus, Sheffield Hallam University, Sheffield, S1 1WB
Student Support - All Full Time students: Student Help and Information Point, Level 1, Stoddart, City Campus Telephone 0114 225 5256
Part Time Postgraduate and Doctoral students: The Welcome Point, Level 1, Stoddart, City Campus Telephone 0114 225 2820