ABSTRACT
In order to achieve effective communication, motivation and control, it is necessary to have accurate performance measures in place. Historically, performance has been measured by financial criteria, but many companies have discovered the ‘new’ performance measures to be a vital part of any strategic management system: measures which are not only quantitative and financial in nature, and which are not geared solely to the maximization of future profits. Measuring performance by using information from existing management accounting systems has generated narrow measures which tend to look back and give a historical view of performance. There was a growing concern that these traditional models were failing.
