| Author: | Reilly, G. P. Reilly, R. R. |
| Title: | Performance Measurement For Improved Working- Capital Management |
| Journal: | Journal of Cost Management
2002 : MAY-JUN, VOL. 16:3, p. 13-20 |
| Index terms: | PERFORMANCE APPRAISAL PERFORMANCE MEASUREMENT CAPITAL MANAGEMENT |
| Language: | eng |
| Abstract: | The authors state that improvement of performance measurement for working-capital management lies in the recognition of the operating roots of the financial results. Understanding of four key working-capital business processes, and the value propositions they can affect, enables both root-cause analysis of problems and the ability to test the consequences of proposed corrective actions. Value paths and measure sets from the Measure Network enable an understanding of key working-capital relationships. The authors also state that using these measurement tools gives managers a clearer understanding of the benefit and cost trade-offs for working capital and, thereby, supports better decision making and improved corporate performance. |
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