TheĀ escalatingĀ level of complexity in organizational management calls for the use ofĀ tools that are bothĀ versatile and precise. Managers, forĀ theirĀ part,Ā need to adopt an attitude that is proactive and cognizant of the reality of their companies. But beyond this, management requiresĀ models and tools that support and guide decisions, with the aim ofĀ renderingĀ decision-making processes more effective and efficient,Ā thusĀ generating value.Ā
To this end,Ā performanceĀ measuring and monitoringĀ systems are playing an increasinglyĀ criticalĀ roleĀ in organizations.Ā
This is the crux of the argument in the bookĀ entitled:Ā
Misurare e gestire le performance. Strumenti e modelli per monitorare i risultatiĀ byĀ Ariela CaglioĀ andĀ AngeloĀ Ditillo,Ā bothĀ AssociateĀ ProfessorsĀ of ManagementĀ Accounting,Ā andĀ Marco Morelli,Ā AssociateĀ ProfessorĀ ofĀ Ā PracticeĀ Ā inĀ AccountingĀ andĀ Control,Ā
published in March 2020 by EGEA.Ā
In the words of the authors, āWe startĀ byĀ a cost classificationĀ as the basis for management to simulate the impact on business performance ofĀ certain decisions. Then we moveĀ on toĀ what lies at the very heartĀ of performanceĀ measurement and control: costing systems. After analyzing the functions of these activity-based measurement systems, we discuss budgeting, one of the most transversal of all management accounting systems inĀ companies.Ā FinallyĀ we addressĀ methodsĀ and metrics for evaluating performance, the crucial question in every organization, concluding our analysis with the issue of digital transformation from a business perspective.āĀ
āBut we need to emphasize oneĀ critical aspect,ā they continue. āTo render decision-making processes more effective and efficient in a comprehensive, systematic way, all managers, regardless of the role they play in the company, must understand and share the metrics and methods for measuring performance. The systems forĀ performance measurementĀ andĀ management will be effectiveĀ only if the logic behind them is clear to end users. This is the only way they will generate long-term benefits for the entire organization.āĀ
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SDA Bocconi School of Management