Performance Evaluation: When Targets Create the Wrong Behaviour

Ice Creams and Risk & Uncertainty

Sun’s out… ice cream vans are back… but how does an ice cream seller decide how much to make? In this episode of PM in the PM, we break down a classic ACCA Performance Management scenario using a simple, real-world example: Maximax Maximin Minimax regret Expected value With the added twist of perishable stock (must sell or throw away) and imperfect information (weather forecasts), this becomes a perfect PM discussion.

Artemis II and ACCA PM

Before astronauts ever leave Earth, they spend thousands of hours practising. In simulations, under pressure, and focusing especially on the things that could go wrong. Passing# ACCA Performance Management #PM is no different. In this episode of PM in the PM, I break down what the Artemis II can teach you about: * Practising in the right environment * Tackling the topics you avoid — not the ones you like * Using feedback properly to improve performance * And why sleep, discipline, and support matter more than last-minute cramming This isn’t about working harder. It’s about training properly. 🎯 If you want to pass PM, start preparing like an Astronaut.

April Fools Special: The Worst Business Ever Built – F.O.O.L Ltd

In this episode of PM in the PM, Richard takes a different approach… Instead of showing how to run a good business, we analyse a terrible one. Welcome to F.O.O.L Ltd — where: ❌ Costs are reduced at the expense of quality ❌ Sales increase but profit falls ❌ Transfer pricing decisions destroy group value ❌ Zero-based budgeting is used the wrong way ❌ Targets are unrealistic and drive poor behaviour 👀 Through a “fly-on-the-wall” view of management meetings, this episode shows how key ACCA PM topics play out in practice: * Variance analysis (and interrelationships) * Sales price vs sales volume * Transfer pricing & goal congruence * Zero-based budgeting vs incremental budgeting * Behavioural aspects of performance management Key takeaway: Performance Management is not about isolated calculations it’s about understanding how decisions impact the wider organisation. If you're preparing for ACCA PM, this episode will help you: ✔ Improve your Section C answers ✔ Add depth to your explanations ✔ Spot hidden marks in exam questions Like, subscribe, and share with other PM students Follow for more exam-focused content

World Water Day 22nd March and PM

In this episode of PM in the PM, I'm marking World Water Day by looking at the hidden costs behind every drop. Is water scarcity just a ‘planet’ problem, or is it a Performance Management one? We dive into the Three Ps (Profit, People, and Planet) and explore how Environmental Management Accounting (EMA) techniques like Flow Cost Accounting and Input-Output Analysis help businesses account for what usually stays off the books. Plus, I’ll show you how spotting externalities and using Non-Financial Performance Indicators (NFPIs) can be your secret weapon for additional marks in Section C answers. Stop letting marks leak away—tune in to see how dripping taps link directly to your syllabus

Performance Evaluation: When Targets Create the Wrong Behaviour

Performance measures are meant to improve performance — but what happens when they do the opposite? In this episode, we explore a real-world style scenario involving Ken and Barbie, two employees in the same organisation, and a well-intentioned performance target that ends up driving dysfunctional behaviour. Using this story, we break down: * How employees “game” poorly designed targets * What ACCA PM means by dysfunctional behaviour * How this links directly to the Building Block Model A must-listen for ACCA PM/APM students looking to strengthen their evaluation skills and avoid common exam traps.