The quest for business value drivers: applying machine learning to performance management

The paper explores the potential role of Machine learning (ML) in supporting the development of a company's Performance Management System (PMS). In more details, it investigates the capability of ML to moderate the complexity related to the identification of the business value drivers (methodological complexity) and the related measures (analytical complexity). A second objective is the analysis of the main issues arising in applying ML to performance management. The research, developed through an action research design, shows that ML can moderate complexity by (1) reducing the subjectivity in the identification of the business value drivers; (2) accounting for cause-effect relationships between business value drivers and performance; (3) balancing managerial interpretability vs. predictivity of the approach. It also shows that the realisation of such benefits requires a combined understanding of the ML techniques and of the performance management model of the company to frame and validate the algorithm in light of the context in which the organisation operates. The paper contributes to the literature analysing the role of business analytics in the field of performance management and it provides new insights into the potential benefits of introducing an ML-based PMS and the issues to consider to increase its effectiveness

Processi innovativi e piccola impresa: quale ruolo prima e durante la crisi? Il caso della Provincia di Forl\uec-Cesena

This paper focuses on the relevance of innovation in small enterprises. In particular, it investigates the role of innovation processes as an opportunity to face the difficulties the world economic crisis has posed. By adopting a longitudinal approach, this study explores the innovation processes of a sample of small Italian companies located in the area of Forl\uec-Cesena. Specifically, it examines the importance of R&D activities, how these are carried out, the factors that might stimulate or hinder the innovation processes and the role of management control in supporting the latter. The results show that innovation is perceived as a relevant factor in moderating the effects of the economic crisis. In fact, the investigated companies intensified R&D activities, reviewed their innovation processes and modified the way they protect innovations. Besides, the role of support of management control has been considered more crucial

Business Performance Analytics in the Banking Industry: evidence from the field

10th Conference of the Performance Measurement Association (PMA Conference 2016) - Performance Measurement and Management: New Theories for New Practices \u2013 27-29 Giugno 2016 - Edinburgh, Scotlan

Performance management in bank branches: a multivariate approach to efficiency measurement.

Management Accounting Research Group Conference (MARG Conference 2016) \u2013 24-25 November 2016 \u2013 Aston Business School, England

Processi innovativi e piccola impresa: quale ruolo prima e durante la crisi? Il caso della Provincia di Forlì-Cesena

This paper focuses on the relevance of innovation in small enterprises. In particular, it investigates the role of innovation processes as an opportunity to face the difficulties the world economic crisis has posed. By adopting a longitudinal approach, this study ex-plores the innovation processes of a sample of small Italian companies located in the area of Forlì-Cesena. Specifically, it examines the importance of R&D activities, how these are carried out, the factors that might stimulate or hinder the innovation processes and the role of management control in supporting the latter. The results show that innovation is perceived as a relevant factor in moderating the effects of the economic crisis. In fact, the investigated companies intensified R&D activities, reviewed their innovation processes and modified the way they protect innovations. Besides, the role of support of management control has been considered more crucial

Costi e Vantaggio Competitivo. L\u2019uso delle informazioni di costo per la gestione del valore.

I costi rappresentano una variabile critica dell\u2019equazione economica dell\u2019impresa e da sempre sono oggetto di attenzione di studiosi e manager, specie in tempi di contrazione di vendite o margini reddituali. Le tecniche tradizionali di analisi dei costi si concentrano per\uf2 prevalentemente sulla misurazione e sul calcolo, anzich\ue9 sulle azioni di possibile intervento, trascurando l\u2019analisi dei fattori che generano l\u2019insorgenza dei costi, nonch\ue9 delle relazioni tra sostenimento dei costi e capacit\ue0 dell\u2019azienda di generare valore per il cliente finale. Partendo da tali limiti, il volume si focalizza su approcci finalizzati a supportare azioni di Cost management in un\u2019ottica strategica, con l\u2019obiettivo di allineare l\u2019acquisizione e l\u2019impiego delle risorse economiche al perseguimento della strate-gia aziendale. Dopo un\u2019illustrazione generale delle logiche e degli strumenti dello Strategic Cost Management (SCM), il testo si articola seguendo un\u2019ottica per processi, illustrando il ruolo dello SCM a supporto del processo di ricerca e sviluppo, di approvvigionamento e di gestione del cliente, con l\u2019ausilio di numerosi casi ed esemplificazioni

Managing performance of bank’s branches: a multivariate approach to efficiency measurement

10th International Management Control Research Conference (MCA Conference 2016) – 6-7 September 2016 - University of Antwerp, Belgium

The practice of strategic performance measurement systems: Models, drivers and information effectiveness

Purpose \u2013 For over 20 years, management control literature has indicated the importance of supporting the strategy development and implementation process with strategic performance measurement systems (SPMS) and integrating traditional financial indicators with a set of multidimensional forward-looking measures focusing on the long term and linked to cause-effect relationships. Nevertheless, knowledge on the specific SPMS models used in practice and their effectiveness in supporting the managerial decision-making process is still fragmented and ambiguous. The purpose of this paper is to first analyse the SPMS models used in practice, also considering the role of strategy and firm size as drivers of adoption, thereafter analysing the capability of SPMS models to provide managers with measures that are consistent with their strategic information needs. Design/methodology/approach \u2013 The research is based on a survey involving 88 Italian medium-large sized firms (or subsidiaries of multinational firms) operating on a global level. Findings \u2013 The cluster analysis identifies two very different SPMS models used in practice. The first is the Short-term Financial Model, and as its name indicates, is based on short-term, internally focused and unconnected financial indicators. The second is the Multidimensional Additive Model, which integrates financial and non-financial measures but without a fully developed fit with the strategy. The research primarily indicates unsatisfied information needs in both clusters, presenting a significant challenge to the further development of existing SPMS models and in defining new theoretical SPMS frameworks. Practical implications \u2013 The adoption of an incremental approach to SPMS, simply adding new operational and strategic non-financial measures without a real fit with the strategy does not increase the information effectiveness of the system. Originality/value \u2013 The paper analyses the characteristics and use of SPMS models in practice from an exploratory perspective, defining and applying a model to evaluate the information effectiveness of SPMS

Business Performance Analytics: level of adoption and support provided to Performance Measurement Systems

The paper deals with the level of adoption of Business Performance Analytics among Italian companies and the potential support to the whole Performance Measurement Systems. The results highlight on average a poor development of this kind of tools and techniques, even if some companies show a very "advanced" approach. An other relevant findings is related to the relationship between the adoption of BPAs and a better information support perceived by the managers