Video: Performance Management Metrics Summary

In this lesson, Nick Palazzolo, CPA, breaks down critical performance management metrics that are essential for businesses aiming to gauge their operating efficacy. He delves into the intricacies of various formulas, including the reorder point and the ROI (Return on Investment), underscoring the latter as an exemplary metric for assessing company performance. Furthermore, Nick clarifies the concept of the balanced scorecard and the importance of being conversant with the cost of quality, which he suggests could potentially be covered in task-based simulations. Lastly, he explains the practice of benchmarking not just against a business's own historical data but also against industry standards and competitors. This engaging session equips attendees with a robust understanding of performance metrics—a critical tool for effectively measuring and managing business activities.