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ACCA Strategic Professional · Advanced Performance Management · Non-financial performance measurement

A manufacturer is rolling out a new set of non-financial KPIs across its plants. Which implementation step is most likely to improve acceptance by operational managers?

Involving managers in choosing measures and agreeing achievable targets they can influence is most likely to improve acceptance. Participation builds ownership and ensures controllability. Central imposition, premature bonus links with untested data, and excessive numbers of measures typically cause resistance, disputes or loss of focus.

  1. AImposing measures centrally without consultation to ensure consistency
  2. BInvolving managers in selecting measures and agreeing targets that they can influenceCorrect
  3. CLinking all measures to bonuses immediately before data quality is tested
  4. DUsing as many measures as possible to cover every activity

Explanation

Participation increases ownership and ensures measures are controllable and understood. Imposition reduces buy-in, immediate bonus linkage with unreliable data creates disputes, and too many measures cause overload and lack of focus.

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