ABSTRACT
In 1993, CIMA published the findings of a study on Performance Measurement In The Manufacturing Sector. One of the key findings was that there appears not to be an optimal mix of both financial and non-financial performance indicators applicable to all manufacturers and that each organisation must find a balance of measures which it views as appropriate for its operational activities and which focuses the organisation on the development and maintenance of competitive advantage. In the process of producing annual accounts, an activity which all companies must carry out, the performance of the company for a particular accounting period is expressed in financial terms. This level of performance
measurement, however, does not provide the detailed information about operational performance required by managers to monitor and control a companies activities on a day-to-day basis. Further, beyond the requirements of shareholders, this top level financial performance measurement does not provide a direct link between the companies activities and the extent to which the requirements of other stakeholders are being met.
