Statement 1
‘Performance management relates to a critical management practice that
usually involves measurement of the key indicators of the organisational goals
and achievements . . the prime motive of an organisation is concerned with
value creation defined in financial terms.’
Harris, E. (2018), p.1, ‘Introduction to performance management and control’,
in Harris, E. (ed.) The Routledge Companion to Performance management and
Control, Routledge, London, pp. 1-10.
Statement 2
‘To launch and grow a tech business*, you need an agile understanding of how
it’s going to create value, and the steps you need to take to monetize that
value.’
Bhimani, A. (2017) Financial Management for Technology Start-ups, p. xi,
Preface.
Formative assessment
Required:
In the context of the above statements, present a critical analysis of the ability of:
• Z scores
• Economic Value Added (EVA)
• Key Performance Indicators (KPIs)
to provide bases for performance measurement and management in tech
companies* of the Fourth Industrial Revolution.
(Maximum 1,500 words, excluding Appendices and Reference List).
Hand-in date: 19th November 2019.
Feedback date: 14th January 2020.
*PTO
Formative assessment
* For the purposes of this essay, a tech company is defined as:
‘a company which will either deliver technology-based products and services in a new way, or
create new and innovative technology-based solutions. Technology encompasses both software and
hardware . . . [a tech company] could be trying to sell products or services to other companies . . . or
it could sell directly to individuals. Or perhaps, it could be facilitating exchanges or transactions of
products and services between consumers. [A tech company] could be in hard science [using]
technology to advance solutions in, say, material science, age-related health decline, genome
challenges, robotics, and so on. It could be operating in the deep tech sector, which includes big
data, machine learning and artificial intelligence. Or, it may be a fintech business that delivers
financial services by making use of software and modern technology. It could be premised to some
degree on creating a platform, with the aim of enabling interactions between users, producers and
consumers.’
Bhimani, A. (2017) Financial Management for Technology Start-ups, pp. 4-5.
Note:
For the purposes of this essay, you may assume that the term ‘financial management’ as used in
Bhimani, A. (2017) is synonymous with the terms ‘management accounting’ and ‘financial planning
and control’.

Summative assessment
Subject to the agreement of the External
Examiner, the Summative assessment will relate
to the issue of business performance
measurement and management in tech
companies.
Term 1 FPC programme
Our work in this term blends:
– Theoretical approaches to the study of FPC.
– Case study examples of the practice of FPC.
Thus, there are qualitative and quantitative elements to our work.
Qualitative issues: will be studied in lectures, seminars and your
reading.
Quantitative work: we will develop management accounting
models. Note that all Term 1-related quantitative exam questions
will simply be variations on these models. So, do not look for and
attempt lots of quantitative questions: focus on understanding
the management accounting models that we develop.
Term 1 FPC programme
I have uploaded Term 1 lecture and seminar
materials to DUO.
Please ensure that you lecture and seminar cases
prior to the relevant session but note that you do
NOT need to attempt these cases in advance.
Note: the terms ‘FPC’ and ‘management
accounting’ are synonymous
Lecture programme: Term 1
The major themes running throughout Term 1 are:
• Management accounting and the creation of value.
• Management accounting continuity and change.