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Advanced PerformanceManagement

Final Revision

Mingkun Wang

楷博财经 (KBF)

1st July

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Main objectives

The main objective is …

• Final reminder for your APM exam success

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Webinar agenda

1. Recap of exam tips from past webinars

2. Key highlights from syllabus for July exam session

3. Q&A

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Keys for your exam success － avoid common mistakes

1. Professional marks

2. All assertions must be supported

3. Add value with comments relevant to the issue at hand

4. Structure your answer

5. Answer the questions required

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Keys for your exam success

1. Professional marks Target: at least 3 marks ！！

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Keys for your exam success

1. Professional marks

Report heading

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Keys for your exam success

1. Professional marks

Report heading

Introduction paragraph

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Keys for your exam success

1. Professional marks

Report heading

Introduction paragraph

Structure, signposting, group ideas together

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Keys for your exam success

1. Professional marks

Report heading

Introduction paragraph

Structure, signposting, group ideas together

Tone, logical flow, persuasiveness and completeness

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Keys for your exam success

1. Professional marks

Report heading

Introduction paragraph

Structure, signposting, group ideas together

Tone, logical flow, persuasiveness and completeness

Target: 3 marks ！！

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Keys for your exam success

2. All assertions must be supported

e.g.

“The report should have more narratives.”

“The employees are risk-averse.”

To fix this, say “BECAUSE” / “FOR EXAMPLE” and then continue with evidence from the scenario.

- Using data given in the case or from your analysis

- Using evidence / examples in the scenario

- Using reasons from common sense

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Keys for your exam success

2. All assertions must be supported

e.g.

“The report should have more narratives.”

“The employees are risk-averse.”

To fix this, say “BECAUSE” / “FOR EXAMPLE” and then continue with evidence from the scenario.

- Using data given in the case or from your analysis

- Using evidence / examples in the scenario

- Using reasons from common sense

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Keys for your exam success

2. All assertions must be supported

e.g.

“The report should have more narratives.”

“The employees are risk-averse.”

To fix this, say “BECAUSE” / “FOR EXAMPLE” and then continue with evidence from the scenario.

- Using data given in the case or from your analysis

- Using evidence / examples in the scenario

- Using reasons from common sense

- The employees are risk averse BECAUSE they experienced redundancy

due to failed project.

- PEST can help Sberry identify CSF. For example, having identified product

safety as a legal concern, safety regulation compliance can be a CSF.

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Keys for your exam success

2. All assertions must be supported

e.g.

“The report should have more narratives.”

“The employees are risk-averse.”

To fix this, say “BECAUSE” / “FOR EXAMPLE” and then continue with evidence from the scenario.

- The report should have more narratives BECAUSE it helps to draw attention on key issues and provide comprehensive information which may not be expressed in numbers.

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Keys for your exam success

3. Add value with comments relevant to the issue at hand

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Keys for your exam success

3. Add value with comments relevant to the issue at hand

• Just copying sentences from the scenario doesn’t get marks.

Use the scenario as evidence to support an argument.

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Keys for your exam success

3. Add value with comments relevant to the issue at hand

• Just copying sentences from the scenario doesn’t get marks.

Use the scenario as evidence to support an argument.

• Simplistic repetition of bookwork without applying to the

scenario doesn’t get marks

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Keys for your exam success

3. Add value with comments relevant to the issue at hand

• Just copying sentences from the scenario doesn’t get marks.

Use the scenario as evidence to support an argument.

• Simplistic repetition of bookwork without applying to the

scenario doesn’t get marks

• Transfer data into information: Develop your idea by linking

metrics together and looking for cause-effect, or by linking to

strategy and CSFs, and even look at the same idea from a

different perspective with “However…”

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Keys for your exam success

3. Add value with comments relevant to the issue at hand

• Just copying sentences from the scenario doesn’t get marks.

Use the scenario as evidence to support an argument.

• Simplistic repetition of bookwork without applying to the

scenario doesn’t get marks

• Transfer data into information: Develop your idea by linking

metrics together and looking for cause-effect, or by linking to

strategy and CSFs, and even look at the same idea from a

different perspective with “However…”

1

2 3

45

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Keys for your exam success

4. Structure your answer with number of ideas matched with number

of marks: use requirement and embedded requirement to help you

structure

e.g.

2 (b) “Using the peformance pyramid, evaluate...new measures...can be

used to measure and manage opertional performance at Zone ” (9 marks)

There are 3 Metrics—use them as headings.

There are 4 operational levels of the pyramid—use these as subheadings.

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Keys for your exam success

4. Structure your answer with number of ideas matched with number

of marks: use requirement and embedded requirement to help you

structure

e.g.

“Assess the analysts’ criticisms…” (9 marks)

In the scenario, The CEO wanted you to cover 3 areas: (a) method of

calculation, (b) sampling, and (c) disclosures.

Use these as headings, and then below each heading, two or three

criticisms, each backed with evidence from the scenario.

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Keys for your exam success

4. Structure your answer with number of ideas matched with number

of marks: use requirement and embedded requirement to help you

structure

e.g.

“Using the peformance pyramid, evaluate...new measures...can be used to

measure and manage opertional performance at Zones ” (9 marks)

There are 3 Metrics—use them as headings.

There are 4 operational levels of the pyramid—use them as subheadings.

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Keys for your exam success

5. Answer the questions required

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Keys for your exam success

5. Answer the questions required

• Evaluate performance vs. performance report

• Specific requirement, e.g. do you need to suggest new KPI,

numbers of KPIs suggested, with or without recommendation.

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Keys for your exam success

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Keys for your exam success

5. Answer the questions required

Assess the suitability of the branch information given as a means of

assessing the shop manager’s performance for this store, providing

suitable additional calculations.

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Keys for your exam success

5. Answer the questions required

Assess the suitability of the branch information given as a means of

assessing the shop manager’s performance for this store, providing

suitable additional calculations.

This does not ask for an assessment of the shop’s performance or the

shop manager’s performance. It asks for an assessment of the

information given as a way of assessing the shop manager’s

performance.

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Keys for your exam success

5. Answer the questions required

Assess or Evaluate

• When you evaluate something, you need to look at both sides: the positive and

the negative (unless specified by the question requirements). Using the

language of “However…”

• Apply the knowledge to reach a judgment, with supporting and explanation.

Using the language of “something is positive (or negative) BECAUSE...”

• Including examples makes your evaluation more credible. Using the language of

“for example…”

• It is important that you include a conclusion. You could have concluding

sentences at the end of a paragraph or a final conclusion at the end of answer.

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Syllabus

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A Strategic planning and control

1. Strategic management accounting

2. Impact of external factors on performance management

3. Performance hierarchy

4. Performance management and control of the organisation

5. Changes in business structure and management accounting

6. Other environmental and ethical issues

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Key highlights

• Analyze and breakdown mission, cascade down objective, develop performance metrics from business objectives

• Use models such as SWOT analysis, BCG, PESTEL, and 5 Forces etc. to assist in the performance management

• Apply and evaluate the methods of benchmarking performance

• Assess the changing role of the management accountant

• Evaluate the strengths and weaknesses of budgeting models and compare budget techniques, and evaluate budget variance

• Information needs/change because of org. structure, service business, BPR, value chain, Mckinsey’s 7S

• Impact on performance measurement and management because of stakeholders, social and ethical, and environmental considerations

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Key highlights

• Analyze and breakdown mission, cascade down objective, develop performance metrics from business objectives

• Use models such as SWOT analysis, BCG, PESTEL, and 5 Forces etc. to assist in the performance management

• Apply and evaluate the methods of benchmarking performance

• Assess the changing role of the management accountant

• Evaluate the strengths and weaknesses of budgeting models and compare budget techniques, and evaluate budget variance

• Information needs/change because of org. structure, service business, BPR, value chain, Mckinsey’s 7S

• Impact on performance measurement and management because of stakeholders, social and ethical, and environmental considerations

2018

Dec

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Key highlights

• Analyze and breakdown mission, cascade down objective, develop performance metrics from business objectives

• Use models such as SWOT analysis, BCG, PESTEL, and 5 Forces etc. to assist in the performance management

• Apply and evaluate the methods of benchmarking performance

• Assess the changing role of the management accountant

• Evaluate the strengths and weaknesses of budgeting models and compare budget techniques, and evaluate budget variance

• Information needs/change because of org. structure, service business, BPR, value chain, Mckinsey’s 7S

• Impact on performance measurement and management because of stakeholders, social and ethical, and environmental considerations

2018

Dec

2019 Dec Q1 2013 Jun Q3

2015 Jun Q1

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Key highlights

• Analyze and breakdown mission, cascade down objective, develop performance metrics from business objectives

• Use models such as SWOT analysis, BCG, PESTEL, and 5 Forces etc. to assist in the performance management

• Apply and evaluate the methods of benchmarking performance

• Assess the changing role of the management accountant

• Evaluate the strengths and weaknesses of budgeting models and compare budget techniques, and evaluate budget variance

• Information needs/change because of org. structure, service business, BPR, value chain, Mckinsey’s 7S

• Impact on performance measurement and management because of stakeholders, social and ethical, and environmental considerations

© ACCA PUBLIC

Key highlights

• Analyze and breakdown mission, cascade down objective, develop performance metrics from business objectives

• Use models such as SWOT analysis, BCG, PESTEL, and 5 Forces etc. to assist in the performance management

• Apply and evaluate the methods of benchmarking performance

• Assess the changing role of the management accountant

• Evaluate the strengths and weaknesses of budgeting models and compare budget techniques, and evaluate budget variance

• Information needs/change because of org. structure, service business, BPR, value chain, Mckinsey’s 7S

• Impact on performance measurement and management because of stakeholders, social and ethical, and environmental considerations

© ACCA PUBLIC

Key highlights

• Analyze and breakdown mission, cascade down objective, develop performance metrics from business objectives

• Use models such as SWOT analysis, BCG, PESTEL, and 5 Forces etc. to assist in the performance management

• Apply and evaluate the methods of benchmarking performance

• Assess the changing role of the management accountant

• Evaluate the strengths and weaknesses of budgeting models and compare budget techniques, and evaluate budget variance

• Information needs/change because of org. structure, service business, BPR, value chain, Mckinsey’s 7S

• Impact on performance measurement and management because of stakeholders, social and ethical, and environmental considerations

2018 MJ Q1 2018 Sep Q3 2017 Jun Q4

2019 Sep Q1, Q3

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B Impact of risk and uncertainty on organisationalperformance

1. Impact of risk and uncertainty on performance management

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Key highlights

• Assess the impact of the different risk appetites of stakeholders

on performance management.

• Evaluate how risk and uncertainty play an important role in long

term strategic planning and decision-making that relies upon

forecasts of exogenous variables.

• Apply different risk analysis techniques in assessing business

performance such as maximin, maximax, minimax regret and

expected values.

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Key highlights

• Assess the impact of the different risk appetites of stakeholders

on performance management.

• Evaluate how risk and uncertainty play an important role in long

term strategic planning and decision-making that relies upon

forecasts of exogenous variables.

• Apply different risk analysis techniques in assessing business

performance such as maximin, maximax, minimax regret and

expected values.

Sweet Cicely (SC) , 2017 SD Q4

(b)

(a)

(c)

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C Performance management information systems and developments in technology

1. Performance management information systems

2. Sources of management information

3. Recording and processing methods

4. Data analytics

5. Management reports

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Key highlights

• Information system

➢ The qualities of good information: ACCURATE

➢ Unified corporate database - ERPS

➢ Lean and 5S

➢ Big data

➢ RFID

• Management report

i) best practice in presentation

ii) the objectives of the report/organisation

iii the needs of the readers of the report

iv) avoiding the problem of information overload

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Key highlights

• Information system

➢ The qualities of good information: ACCURATE

➢ Lean and 5S

➢ Unified corporate database - ERPS

➢ Big data

➢ RFID

• Management report

i) best practice in presentation

ii) the objectives of the report/organisation

iii the needs of the readers of the report

iv) avoiding the problem of information overload

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Key highlights

• Information system

➢ The qualities of good information: ACCURATE

➢ Lean and 5S

➢ Unified corporate database - ERPS

➢ Big data

➢ RFID

• Management report

➢ i) the objectives of the report/organisation

ii) best practice in presentation

iii) the needs of the readers of the report

iv) avoiding the problem of information overload

➢ Integrated reporting2019 Mar Q1

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D Strategic performance measurement

1. Strategic performance measures in the private sector

2. Divisional performance and transfer pricing issues

3. Strategic performance measures in not-for-profit organisations

4. Non-financial performance indicators

5. The role of quality in management information and performance measurement systems

6. Performance measurement and strategic human resource management issues

7. Other behavioural aspects of performance measurement

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Key highlights

• Private sector

• Division performance and transfer price

• Not-for-profit organization

• Non-financial indicator

• Quality management

• HRM and other behavioural aspects

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Key highlights

• Private sector

➢ Calculate and discuss the appropriateness of financial indicators,

(e.g. EVA)

➢ Indicators of liquidity and gearing need to considered in

conjunction with profitability

• Division performance and transfer price

• Not-for-profit organization

• Non-financial indicator

• Quality management

• HRM and other behavioural aspects

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Key highlights

• Private sector

• Division performance and transfer price➢ Evaluate the performance of the divisions and evaluate the

usefulness of the measures➢ Discuss the need for separate measures in respect of

managerial and divisional performance ➢ Transfer price (Why-purpose, and How)

• Not-for-profit organization

• Non-financial indicator

• Quality management

• HRM and other behavioural aspects

2017 Jun Q4

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Key highlights

• Private sector

• Division performance and transfer price

• Not-for-profit organization

➢ Complexity: diversity in objectives, difficulty in measuring,

stakeholder complexity

➢ Value for money: 3E

➢ League table

• Non-financial indicator

• Quality management

• HRM and other behavioural aspects

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Key highlights

• Private sector

• Division performance and transfer price

• Not-for-profit organization

• Non-financial indicator

➢ Discuss the significance of non-financial performance

indicators, and difficulties in interpreting

➢ E.g. customer satisfaction reports, repeat business ratings,

customer loyalty, brand awareness and company profile

• Quality management

• HRM and other behavioural aspects

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Key highlights

• Private sector

• Division performance and transfer price

• Not-for-profit organization

• Non-financial indicator

• Quality management

➢ Japanese techniques: TQM, JIT, Kaizen, Target costing

➢ Six Sigma

➢ Four quality cost areas

• HRM and other behavioural aspects

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Key highlights

• Private sector

• Division performance and transfer price

• Not-for-profit organization

• Non-financial indicator

• Quality management

• HRM and other behavioural aspects

➢ Appraisal: control AND development

➢ Target and reward (application the Building Block model)

➢ Management style

➢ Problem of using performance measures− What gets measured gets done

− Tunnel vision, myopia, ossification etc, and affect the risk appetite of employees

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E Performance evaluation and corporate failure

1. Alternative views of performance measurement and

management

2. Strategic performance issues in complex business structures

3. Predicting and preventing corporate failure

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Key highlights

• Balanced scorecard

• Building block model

• Performance pyramid

• Activity based management

• Value based management

• Predict corporate failure model

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Key highlights

• Balanced scorecard

• Building block model

• Performance pyramid

• Activity based management

➢ 2019 MJ Q2

• Value based management

➢ Totaig, 2020 Mar, Q2

➢ Bazeele, 2018 Mar, Q3

• Predict corporate failure model

➢ How to use, and the problem of using

➢ Culam, APM Specimen Q2

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Exam technique checklist

Before the exam day

1. I study the whole syllabus from a broad perspective.

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Exam technique checklist

During exam, before starting writing

2. I evaluate the number of marks and use that as a guide to the

number of ideas I should generate.

3. Before I write, I have an answer plan based on the specific

requirement.

4. I look for the embedded requirements and use that as a

starting place for structure.

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Exam technique checklist

During exam, when I am writing

5. I use headings and subheadings throughout my script.

6. The ideas I am writing are linked to the scenario.

7. When I Evaluate or Assess something, I am using the correct

language: something is positive, or negative BECAUSE....

8. I avoid copying parts of the scenario without adding any

analysis.

9. I get at least 3 professional marks.

10. I follow proper time management: 1.8 minutes per mark. Go for

the easy requirements first, saving difficult ones for later.

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Good luck!