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Emerald Group Publishing Limited
Copyright © 2004, Emerald Group Publishing Limited
Coming up short on non-financial performance measurement
Ittner, C.D. and Larcker, D.F., Harvard Business Review (USA), November 2003, Vol. 81 No.11, Start page: 88, No. of pages: 8
Describes findings from field research conducted with a range of manufacturing and service companies concerning their strategy and performance measurement systems. Gives examples showing how the substitution of qualitative performance measures for more traditional accounting approaches can be counter-productive. Discusses some common mistakes, observing that companies may not link their qualitative measures to strategy or, if they do create a causal model, may fail to validate the links between the chosen non-financial performance measures and financial results. Considers the difficulties involved in selecting performance targets that will deliver long-term payoffs and in developing metrics that have statistical validity and reliability. Recommends a series of steps that facilitate the effective use of non-financial performance measures.
The usefulness of a performance measurement system in the daily life of an organisation: a note on a case study
Azofra, V., Prieto, B. and Santidrian, A., British Accounting Review, (UK), December 2003, Vol. 35 No. 4, Start page: 367, No. of pages: 18
Outlines previous research recognizing the importance of non-financial as well as financial measures of performance and provides a case study of a Spanish subsidiary of a US multinational in the car sector which has developed the use of both as a basis for continuous improvement. Explains the research design and theoretical framework, describes the company and its performance measurement system; and analyses in detail the function which this system fulfills and its links with profitability. Stresses that the system was not an "off-the-shelf" solution or imposed by head office; and puts its success within the plant down to its practical evolution.
Internet reporting: current trends and trends by 2010 (5 October 2002)
Jones, M.J. and Xiao, J.Z., Accounting Forum (Australia), June 2003, Vol. 27 No. 2, Start page: 132, No. of pages: 34
Reviews previous research on Internet-based financial reporting and uses opinions from 19 UK experts (names and expertise appended) to assess current trends and predict trends by 2010. Explains the research method and tabulates the opinions collected, broken down into those from academics, regulators, companies, users and auditors, before discussing the main trends identified. Expects more information to be provided in the short and long term with a sharp short-term increase in non-financial information; and various changes to corporate communications and reporting. Suggests that hard copy reports will persist and that users will make more use of the Internet but doubts that they will get direct access to corporate databases. Recognizes that regulation, audit and assurance will be difficult, forecasts some technological developments and identifies more benefits than costs. Compares these opinions with other research findings, comments on them and considers the limitations of the study and opportunities for further research.
Davis, C.E., Keuer, W.P. and Clements, C., The CPA Journal (USA), November 2002, Vol. 72, No. 11, Start page: 28, No. of pages: 7
Examines the practices of US Fortune 100 companies in relation to the trends and techniques they adopt in Web-based financial reporting. Exhibits examples of cost estimates for Web-based reporting components, and identifies Web-based reporting BSc practices based on the Web sites of the 1998 Fortune 100, in respect of annual reports, quarterly reports, Securities and Exchange Commission filings, financial analysis information and tools, and communication tools. Reproduces screen shots of the financial reporting Web site pages of the Coca Cola, Caterpillar, Texaco and J.C. Penney organizations. Makes the point that as a new medium, the Web is open for the exploration of new ways of achieving traditional reporting objectives.