Companies now paying more attention to customer service, productivity; less focus on employee turnover.
Position | AICPA |
Forty-six financial executives and managers attending this summer's AICPA Performance Management Conference were asked if they are still measuring the same company performance factors they were a year ago. Surprisingly, dramatic shifts surfaced.
Virtually all of the companies with rigorous performance measurement systems are now assessing customer service. Only two-thirds did last year. There also is a renewed focus on productivity: two-thirds now focus on productivity measurement while only one-third did last year.
The depressed economy is seen as the reason why companies are paying renewed attention to their customers and productivity. "Companies are looking for ways to create added value," said AICPA Vice President-New Finance John Morrow. "Many are resurrecting Total Quality tools and processes to reinvigorate their focus on the customer, quality and efficiency."
Traditional financial indicators remain important, however: Net operating income and revenue/sales are still top priorities. A financial indicator stimulating much more interest this year is return on investment. As would be expected in near-recessionary times, less attention is being paid to quantifying and reducing...
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