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How to measure departmental performance in an organization? Be it a cost center/support function, or a business unit (sales/marketing dept)?

The measurement of departmental performance would be in comparison to the annual objectives and strategies and targets

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Question added by Asad Faiz , General Manager Supply , Pakistan State Oil Company Limited
Date Posted: 2014/07/06
Asad Faiz
by Asad Faiz , General Manager Supply , Pakistan State Oil Company Limited

The best way to measure departmental performance is through a Company Performance Report which should be reviewed by management on a monthly basis.

This report should consist of sales, discounts, gross margins, expenses and profitability and all these elements should be tabled and in comparison to targets (for the month), and comparison to last year (same period). Moreover the report should also show what the department contributes to the overall profitability of the company. 

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