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Total optimal performance scores: a practical guide for integrating financial and nonfinancial measures in performance evaluation: tops uses Excel Solver, a mathematical optimization tool, to determine the most efficient or top-performing division in an organization and then score other divisions' performance against it.
- Article from:
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Management Accounting Quarterly
- Article date:
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September 22, 2006
- Author:
- Briggs, John; Claiborne, M. Cathy; Cole, Elizabeth
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Copyright informationCOPYRIGHT 2006 Institute of Management Accountants. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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EXECUTIVE SUMMARY Most companies use multiple measures to evaluate employee, departmental, or divisional performance. Aggregating multiple measures is subjective and can lead to employee dissatisfaction and game playing. Now there is TOPS (Total Optimal Performance Scores), which uses an objective, mathematical way to aggregate multiple performance measures into a single performance score.
Today's competitive markets demand a robust performance evaluation. As organizations realize that profit-based models for evaluating performance are inadequate, models that incorporate both financial and nonfinancial measures of performance have started to appear. Although financial ...