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The Best Measures That Should Be Captured and Reported to Managers

Question 147

Essay

The best measures that should be captured and reported to managers relate to corporate strategy and are SMART: specific,measurable,actionable,relevant,and timely.Below are examples of poorly constructed performance measures for each of these.For each component of SMART,provide two better measures than the poorly constructed measures provided.
 SMART  Process  Measured  Poor  Measure  Better measures  Specific  Sales  Customer  Satisfaction #1.#2. Measurable  Financial  stability  Profit #1.#2. Actionable  Accounts  payable  Corporate  profit #1.#2. Relevant  Assembh  Delivery  time #1.#2. Timely  Sales  Last year’s  orders #1.#2.\begin{array} { | l | l | l | l | } \hline \textbf { SMART } & \begin{array} { l } \textbf { Process } \\\textbf { Measured }\end{array} & \begin{array} { l } \textbf { Poor } \\\textbf { Measure }\end{array} & \textbf { Better measures } \\\hline \text { Specific } & \text { Sales } & \begin{array} { l } \text { Customer } \\\text { Satisfaction }\end{array} & \# 1 . \\\hline & & & \# 2 . \\\hline \text { Measurable } & \begin{array} { l } \text { Financial } \\\text { stability }\end{array} & \text { Profit } & \# 1 . \\\hline & & & \# 2 . \\\hline \text { Actionable } & \begin{array} { l } \text { Accounts } \\\text { payable }\end{array}& \begin{array} { l } \text { Corporate } \\\text { profit }\end{array} & \# 1 . \\\hline & && \# 2 . \\\hline \text { Relevant } & \text { Assembh } & \begin{array} { l } \text { Delivery } \\\text { time }\end{array} & \# 1 . \\\hline & && \# 2 . \\\hline \text { Timely } & \text { Sales } & \begin{array} { l } \text { Last year's } \\\text { orders }\end{array} & \# 1 . \\\hline & && \# 2 . \\\hline\end{array}

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