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Chapter 15

Performance and progress measures

2.1 Companies – typical measures

 Profit  Market share

 Return on assets  Customer satisfaction

 CF  Quality measures

 Vale added  Risk measures

 Cost targets  Competitive position

2.2 Not for profit organisations

The strategic planning process can be more complex for NFPs since:

 multiple objectives, which are hard to prioritise

 objectives are more difficult to measure – usually non-financial

 influence/objectives of funding bodies

 recipients of the service are not the ones who pay for it.

Many NFPs therefore focus on the concept of value for money – the 3E’s model.

 Economy – focuses solely on inputs to the NFP.

 Efficiency – looks at the link between inputs and outputs.

 Effectiveness – looks solely at the outputs of the NFP.

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