ACCA Strategic Professional · Advanced Performance Management · Management reports
Brandt Airlines wants to improve its management reports using a live dashboard fed by operational data. Management is concerned that the dashboard may lead to dysfunctional behaviour. Which design feature is most likely to mitigate this risk while retaining the benefits of real-time reporting?
Using a balanced set of linked financial and non-financial measures with context and trends best reduces dysfunctional behaviour. A single tight measure or automatic bonus link encourages gaming, and minute-by-minute figures prompt reaction to noise rather than meaningful signals.
- AShowing a single measure, on-time departure, with a very tight target
- BUsing a balanced set of linked financial and non-financial measures, with context and trends rather than isolated real-time figuresCorrect
- CUpdating every metric every minute so that staff react immediately to each change
- DLinking all bonuses automatically to the dashboard's headline figure
Explanation
A single tight measure invites gaming, such as delaying safety checks to hit departure times. A balanced set with trends and context reduces myopic behaviour and noise reactions. Constant updates encourage overreaction, and automatic bonus links intensify gaming.
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