Performance Report vs Performance Measurement System – Evaluation

Hello guys,
For (i) you evaluate if the report itself is good – for this you need to think about who will read it (will this person understand it? Isn’t it too detailed? If there is only financial data in the report, maybe this would be not comprehensible for the member of the board with no financial background?), what information does it contain (is this what the reader wants to know?) and how it is presented (maybe too detailed or no comments given? is there any comparable information, eg. previous period or the industry benchmarks?).

For (ii) you assess the measures used by the company, so you need to think:
– do they address the mission, objectives and strategies of the company?
– are they both external and internal oriented?
– are they both short- and long-term oriented?
– are they both financial and non-financial?
– what’s the cost of measuring performance with this specific measure (in terms of collecting data and processing it) compared to the benefits gained from the measurement?
– is the frequency of the measurement sufficient?
– are the results from the measurement used by appropriate person/department?
etc.

So in general, in (ii) you concentrate on if the measures are correctly chosen and calculated and if they are appropriate for this specific company, while in (i) you focus on how are they presented in the report. If there is no part (ii) in the question, I would include in (i) also some of the remarks about the choice of measures by the company in general (so aspects from (ii)).