Enterprise Performance Management

Syllabus

401: Enterprise Performance Management

UNIT-1

Performance Management: Concept, Need, Linkages with Strategic Planning, Management Control and Operational Control. Performance Evaluation Parameters: Financial – Responsibility Accounting –Concept of Responsibility Centers, Revenue Centre, Expense Centre - Engineered and Discretionary Costs – Committed Costs, Profit Centre, Investment Centers. ROI, ROA, MVA, EVA – DuPont Analysis. (Numerical Not Expected – Interpretation only) Limitations of Financial Measures.                                                                                                       (8+1)

UNIT-2

Performance Evaluation Parameters: Non-Financial Performance Measures – Balanced Scorecard, Malcolm Baldrige Framework. Measuring SBU Level Performance: Concept, Need, and Linkages with Enterprise Performance Management – Goal Congruence. Transfer Pricing – Objective, Concept, and Methods – Cost Based, Market Price Based & Negotiated, Applicability of Transfer Pricing. (Numerical / Case is Expected)                      (7+1)

UNIT-3

Capital Expenditure Control: Concept, Need, Process of Capital Budgeting, Types of Capital Expenditure Decisions – Pre-Sanction, Operational and Post-Sanction Control of Capital Expenditure. Tools & Techniques of Capital Expenditure Control: Performance Index, Technical Performance Measurement, Post Completion Audit. Performance Evaluation Parameters for Projects: Project Control Process: Setting Base Line Plan, Measuring Progress and Performance, Comparing Plan Against Action, Taking Action, Schedule Variance (Time Overruns), Project Cost Variance (Cost Overruns).                                                                                                                    (8+2)

UNIT-4

Performance Evaluation Parameters for Banks: Customer Base, NPAs, Deposits, ROI, Financial Inclusion, Spread, Credit Appraisal, Investments. Performance Evaluation Parameters for Retail: ABC Analysis, Sell Through Analysis, Multiple Attribute Method, Gross Margin Return on Investment (GMROI), GMROI as Gross Margin/Average Inventory at Cost, Performance Evaluation Parameters for Non-Profit: Features of Non-Profit Organizations, Fund Accounting, Governance, Product Pricing, Strategic Planning & Budget Preparations, Social Audit.    (8+2)

UNIT-5

Performance Evaluation Parameters for E-Commerce: Features of E Commerce, Need of Evaluation, Metrics for Performance Evaluation: Business Metrics, Traffic Metrics, Conversion Matrix & Audience Involvement Metrics. Various KPI Used by E-Commerce Industry : Website Traffic , Referral Traffic, Conversion Rate Optimization, Bounce Rate of Website, Repeat Visit, Cart Abandon Rate, Cost per Conversion, Average Order Value, Revenue on Advertising Spend, Customer Life Time Value, Net Promoter Score, Churn Rate. Audit Function as a Performance Measurement Tool: Financial Audit, Internal Audit, Cost Audit, Management Audit – Principles and Objectives (Audit Reports / Formats are Expected to be Discussed in the Class from a Performance Measurement Perspective).                                                                                                                                                              (9+1)