Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 29 June 1993
Length: 26 pages
Data source: Field research
Abstract
The company has committed to major improvements in quality, cost, and on-time delivery performance. Despite strong senior management support, however, the actual rate of improvement was disappointing until a new measurement philosophy was introduced. The new approach specified expected rates of improvement and compared actual improvements to the expected rate. Operational people preferred the new measures to the monthly financial reports they continued to receive. The case explores the conflicts between financial measurements and operating improvements.
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Length: 10 pages
About
Abstract
The company has committed to major improvements in quality, cost, and on-time delivery performance. Despite strong senior management support, however, the actual rate of improvement was disappointing until a new measurement philosophy was introduced. The new approach specified expected rates of improvement and compared actual improvements to the expected rate. Operational people preferred the new measures to the monthly financial reports they continued to receive. The case explores the conflicts between financial measurements and operating improvements.
Settings
Related
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Length: 10 pages