Assessing and improving performance

In this lesson

1. 0:00 Performance measurement objectives explained
2. 1:00 Linking performance gaps to root causes
3. 2:23 Accounting for external market factors
4. 3:27 Analysing manager performance case study
5. 7:36 Adjusting for inflation and market decline

About this lesson

You'll explore the three core objectives of performance measurement: identifying underperformance, explaining variances between targets and actuals, and implementing targeted improvements. The video walks you through a structured methodology: linking performance measures to root causes, then recommending actions that address the underlying issues rather than just symptoms. A key insight covered is distinguishing between controllable and uncontrollable factors. External conditions—market contraction, cost inflation, economic shifts—sit outside a manager's control and must be adjusted for when assessing performance fairly. Using a worked example of a profit centre manager's division, you'll see how to strip out external factors (like a 20% material cost increase or 10% market decline) to reveal the true areas of managerial underperformance. This approach ensures your performance evaluation is accurate, fair, and actionable—whether you're analysing sales volume, sales price, or cost variances.

Duration: 9m