Performance management
Performance management links objectives, plans, measures, evaluation and actions to improve organisational outcomes. It includes selecting relevant indicators, interpreting evidence, managing resources and influencing behaviour through responsibility and rewards. The system should fit strategy, stakeholders and business conditions rather than merely produce a large report. Distinguish management from measurement: recording a result is not the same as understanding its cause or responding appropriately.
Worked example
A fall in on-time delivery prompts analysis of demand and bottlenecks, revised scheduling and follow-up measures, rather than only circulating the percentage.
Common mistake
Targets and rewards can improve a reported number while harming the real objective, so evaluate behaviour as part of the system.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |
| ACCA | PM | Direct | September 2026–June 2027 |