TAILIEUCHUNG - Cost Accounting Traditions And Innovations - Chapter 19

CHAPTER 19 Measuring Short-Run Organizational Performance After completing this chapter, you should be able to answer the following questions: How are performance measures tied to organizational missions and strategies? | CHAPTER Measuring Short-Run Organizational Performance 9 LEARNING OBJECTIVES Ater completing this chapter you should be able to answer the following questions 0 How are performance measures tied to organizational missions and strategies 0 What roles do performance measurement serve in organizations 0 What guidelines or criteria apply to the design of performance measures s What are traditional short-term financial performance measures of profit and investment centers 0 How might the Statement of Cash Flows be useful for performance measurement 0 How are return on investment and residual income similar How do they differ 0 How is economic value added used to measure performance 0 Why might the use of ROI create suboptimization in investment decisions INTRODUCING Wachovia he environment in which banks will compete in the next decade may force them to perform much more like retailers than like the financial institutions our parents knew. This means that whether bank managers and employees are in the service or sales arena operations product management or channel management they will need the skills and behavior of the best in class retailers. Banks must harness the power of information to create a banking experience that is customized to their target customers. Successful banking in this new millennium will require focusing on the customer. Wachovia is a bank that believes it has found the formula for success in the new banking environment. At Wachovia information drives the development and retention of profitable relationships. With dual headquarters in Winston-Salem and Atlanta the bank serves customers in five states Florida Georgia North Carolina South Carolina and Virginia. Overall the bank operates 700 stores that are complemented by a robust ATM network. Wachovia has developed a process called continuous relationship management CRM as a crucial tool in differ- http entiating its services from those of competitors. CRM is .

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