Performance management is a concept which can be approached from two different perspectives, financial accounting and managerial accounting.
In financial accounting, performance management is viewed as a tool to ensure finances are reasonably healthy, expenditures and resources are in balance and there is no fiscal deficit. It means managing dollars by dollars not managing results by results. Financial aspect of a business is what counts not what is really counted, non-financials.So the main measures of success are satisfactory results on balance sheet, P&L and cash flow statements.
In management accounting, however, performance management is mostly non-financial, because what contribute to financial bottom line are operational and non-financial part of a business.
Experform leverages the use of ABC/M and performance measurement approaches like the balanced scorecard for a complete performance management solution to manage cost, budget and non-financial performance of an organization.