Performance system review
Performance system review evaluates whether the organisation’s measures, reports, incentives and controls remain useful as its strategy and operating conditions change. Review relevance, reliability, timeliness, cost and behavioural effects, including whether old targets encourage obsolete activities. Test proposed improvements with users and monitor their effects rather than continually changing measures without a clear reason. Comparability matters, so explain changes in definitions and preserve an appropriate bridge between old and new reporting.
Worked example
A retailer adds online fulfilment but still rewards branches solely for till sales. A review introduces measures for accurate click-and-collect service and shared customer outcomes, with clear attribution rules and a transition period.
Common mistake
Assuming that installing new software automatically fixes unsuitable measures or incentives.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |
