Over the past thirty years, private and public sector organizations have spent billions of dollars implementing a wide range of management tools and practices in efforts to improve their performance. The benefits of this massive investment were not usually fully realized, and many initiatives failed. Surveys by both Bain & Co. and McKinsey estimate that only 25 to 30 percent of all change programs succeed. Reasons for project failure include ineffective leadership, lack of commitment, and poor implementation.

Many firms rush to purchase and implement performance management tools without considering a fundamental question – which problem are we trying to solve? The purpose of this course is to provide an overview of the key building blocks of a robust performance management process, and includes takeaways that can be used at work.

The course starts with an overview of the organizational levels where performance should be measured, and includes an explanation of how the levels fit into a hierarchy. Transfer pricing techniques are then explored, followed by how to implement internal profitability. Return on investment is reviewed, including a discussion of how residual income can compare the impacts of project of different sizes.

The course concludes with an overview of the balanced scorecard, which focuses on the interaction of customer, internal processes, innovation and financial perspectives. The course content covers performance management topics tested in the Certified Management Accountant (CMA) Part 1 examination.

Topics include:
• Responsibility Centers.
• Transfer Pricing.
• Internal Profitability Analysis.
• Return on Investment and Residual Income.
• The Balanced Scorecard.

Course Key Concepts: Balanced scorecard, business unit analysis, contribution margin, controllable fixed costs, cost plus transfer pricing method, dual rate transfer pricing method, full cost transfer pricing method, goal congruence, key performance indicators (KPI’S) , market price transfer pricing method, negotiated price transfer pricing method, non-controllable allocated fixed costs, non-controllable fixed Costs, residual income, return on investment (ROI), transfer pricing, variable cost transfer pricing method.

Other Performance Management topics tested in the Certified Management Accountant (CMA) Part 1 Examination courses by Tom Coghlan.
Standard Cost and Variance Analysis

Learning Objectives
  • Identify and explain different types of responsibility centers.
  • Identify segments that organizations evaluate, including product lines, geographical areas, or other meaningful segments.
  • Recognize transfer pricing and the objectives of transfer pricing.
  • Identify and calculate transfer prices using variable cost, full cost, market price, negotiated price, and dual-rate.
  • Recognize the issues in determining product, customer and business unit profitability.
  • Recognize and calculate return on investment (ROI) and residual income (RI), and compare and contrast the benefits and limitations of ROI and RI as measures of performance.
  • Recognize the relationships between the strategic plan, key performance indicators, and the balanced scorecard.
  • Explore the concept of the balanced scorecard and identify and describe its four perspectives.
Last updated/reviewed: August 13, 2023
27 Reviews (111 ratings)

Reviews

4
Member's Profile
I'm glad I was able to review the supporting material in conjuction with the course. There is a ton of material to unpack here. This was one of the first courses I'd reviewed with this instructor. Good job of presenting the concepts of transfer pricing. I hadn't had that material since grad school and it all came back. Very clear explainations.

5
Member's Profile
Corporate performance management (CPM) is a term used to describe the various processes and methodologies involved in aligning an organization's strategies and goals to its plans and executions in order to control the success of the company.

5
Anonymous Author
The instructor provided a thorough overview of key concepts and incorporated many scenarios throughout the course. I particularly enjoyed learning more about transfer pricing, and the balanced scorecard segment served as a great refresher.

5
Anonymous Author
I feel this course was integral to understanding that corporate performance management is essential for any organization that wants to succeed in today's competitive business environment.

4
Anonymous Author
There was a lot covered in this class. I think it was good content, but I think that some parts could have been moved to a different class.

4
Anonymous Author
The presenter packed a lot of info in a short period of time. This helped connect some dots for me and learned some new info as well.

4
Anonymous Author
Well presented and thoughtful content, but a little tough to absorb in a 6 hour span. May be better in individual modules.

5
Anonymous Author
This course had a lot of great information for someone like me who has not known any of these concepts or terms before.

5
Anonymous Author
Very informative. Thanks for sharing on this important topic. It covered information I did not previously know.

5
Anonymous Author
Excellent review of standard costs, variance analysis, budgeting, and management reporting. Worthwhile course.

4
Anonymous Author
Very strong topics to review, but the notes and sections of the learning are in line with the exam.

5
Anonymous Author
Some of this is review from school many years ago, but it also clarifies a bit what I see at work.

5
Anonymous Author
This is a very informative course with great slides. I thought the instructor was very thorough.

5
Member's Profile
One of many great segments to learn the higher levels of financial management and reporting.

5
Member's Profile
Great material, organized and presented well. Will be completeing the related courses.

5
Member's Profile
This webinar contains a lot of useful information. It is a lot to learn. Thanks.

5
Anonymous Author
Very well written and communicated. I really enjoyed listening to this training.

5
Member's Profile
Great materials, liked doing the review questions in smaller increments.

3
Anonymous Author
I learned a lot from this class. It was very helpful and informative.

4
Anonymous Author
Very good course materials. A lot was covered in very logical flow.

5
Anonymous Author
Well presented, easy to follow, not dull. Informative and relevant.

3
Anonymous Author
Very informative although hard to follow. Could be more detailed.

3
Anonymous Author
Solid refresher course on performance related metrics and topics.

5
Anonymous Author
This exam, there are terribly difficult 4 quizs among twelve.

5
Member's Profile
great class with lots of good information, i enjoyed it

3
Member's Profile
it reminds me what I learned in school, so it was helpful

4
Anonymous Author
A lot of information and well presented, a good review

Prerequisites
Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
Introduction and Overview
  Introduction to Corporate Performance Management2:53
  Responsibility Centers19:12
  REVIEW QUESTIONS: Responsibility Centers quiz
  Transfer Pricing 14:54
  REVIEW QUESTIONS: Transfer Pricing quiz
  Internal Profitability Analysis7:36
  Return on Investment and Residual Income9:08
  The Balance Score Card14:07
  REVIEW QUESTIONS: The Balanced Scorecardquiz
CONTINUOUS PLAY
  Corporate Performance Management1:07:50
SUPPORTING MATERIALS
  Slides: Corporate Performance ManagementPDF
  Corporate Performance Management Glossary/IndexPDF
REVIEW AND TEST
 FINAL EXAMexam