BPP Learning Media's ACCA P5 Advanced Performance Management: Study Text PDF

By BPP Learning Media

ISBN-10: 1472726839

ISBN-13: 9781472726834

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Additional resources for ACCA P5 Advanced Performance Management: Study Text

Example text

The Report of the Supervisory Board in BMW Group's 2012 Annual Report notes that the Board met for a two-day meeting primarily devoted to corporate and product strategy on the one hand, and to the longterm business forecast on the other. com One important issue the Board discussed was 'the strategic planning of worldwide production capacities'. In addition to the expansion of existing plans within Germany, BMW's Board of Management presented plans for future production facilities in other locations.

Com At strategic and operational levels, planning and control differ in terms of the nature of feedback (double loop vs single loop), orientation (future vs present) and scope (organisation as a whole vs limited set of processes within it). 1 Differences between 'strategic' and 'operational' ter We can contrast briefly the differences between planning and control at strategic (corporate) and operational levels as in the table below. Operational 'Broad brush' targets Detailed Whole organisation Departmental activities ym a Strategic External inputs, with a wide variety of data types from a wide range of sources Mainly internal information, with less variety of data and from fewer sources External focus Internal focus, on actual procedures Future-orientated, feed-forward control tud Potential for double loop feedback, ie the opportunity to change the plan Long term More concerned with monitoring current performance against plan Mainly single loop feedback; performance must change, not the plan Short term cc as One of the key challenges that organisations face is linking their (long-term) strategy to their day to day operations.

Cc However, this highlights the fact that an organisation must first have established its goals and objectives, in order to then assess whether they are being met. ea In this respect, strategic planning (establishing an organisation's mission, objectives and goals) is necessary before any performance management can take place. Once an organisation's goals have been set, and then its operational performance targets have been set, an organisation can begin to measure whether these goals and targets are being achieved.

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