Evaluation and Control Process

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Evaluation and Control Process
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Responsibility Centers

• Standard cost centers
• Revenue centers
• Expense centers
• Profit centers
• Investment centers

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Definition of Benchmarking

• The continual process of measuring products,
  services, and practices against the toughest
  competitors or those companies recognized as
  industry leaders
• UPS Benchmarks United States Postal Service and
  Federal Express

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Problems in Measuring Performance

• Short-term orientation
• Goal displacement
• Behavior substitution
• Sub-optimization

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Critical Success Factors

• Those things that must go well to ensure success
  20 of the factors that determine 80 of the
  performance