Traditional accounting systems based on performance measurements are not suitable for the current organization in which relations with employees, customers, suppliers and other interested parties have changed, they said. Stakeholder approach to performance measurement captures the strategic planning, while the choice of the company is doing in the area of strategic planning to direct the design of performance measurement. The authors define two groups of stakeholders: environmental (customers, owners and the community) and the process (employees and suppliers). The company exists to serve the goals of the stakeholders who are its main goals. The company expects and gives each group of stakeholders in order to achieve its primary objective of its secondary purposes. The company has to plan and negotiate explicit and implicit contracts with stakeholders and assess whether the plan meets the expectations of all stakeholders. Staff to design, implement and manage processes to achieve secondary objectives, expecting that the main objectives to the result. Thus, according to the authors, the measurement of the effectiveness of the company must evaluate all of the processes on the basis of their contribution to the secondary targets. According to them, the system, which is the heart of the company's management should: help assess how the company gets the expected contributions from employees and suppliers, and the income from customers, as well as helping to assess whether the company gives each stakeholder group that they need to continue to contribute, to guide the design and implementation of processes that contribute to the secondary tasks, and help evaluate the company and planning of explicit and implicit contracts with stakeholders. The authors consider a framework for measuring the effectiveness of the Bank of Montreal. "Hide
by Anthony A. Atkinson, John H. Waterhouse, Robert B. Wells Source: MIT Sloan Management Review 16 pages. Publication Date: April 1, 1997. Prod. #: SMR027-PDF-ENG
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