Performance measure--speed-to-market


Describe actions that managers might take to show improvement in the performance measure but which do not actually lead to improvement in the organization's overall performance.

Concerned with the slow rate at which new products are brought to market, top management of a consumer electronics company introduces a new performance measure--speed-to-market. The research and development department is given responsibility for this performance measure, which measures the average amount of time a product is in development before it is released to the market for sale.

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Accounting Basics: Performance measure--speed-to-market
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