AICPA survey finds performance measurement often ineffective.(Brief Article)

Publication: Accounting Today

Publication Date: 21-MAY-01

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NEW YORK -- A survey conducted by Maisel Consulting Group and the American Institute of CPAs has found that most respondents consider their performance measurement systems less than effective. Furthermore, companies generally view their performance measurement systems as tools to report business results rather than to execute strategies and drive longer-term competitive advantages.

The survey found that sales and net operating income were the primary financial measures of business performance. Productivity and customer service and satisfaction were the leading non-financial measures.

One of the more disappointing results of the survey, according to Lawrence S. Maisel, CPA, the director of the survey project, the founder of Maisel Consulting Group and a principal with the Balanced Scorecard Collaborative Inc., was that only 35 percent of the respondents rated their company's performance measurement system as "effective" or "very effective", and...

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