Program structure and content
Financial Performance Management
In 6 weeks, move from managing by numbers to managing by behavior, performance, and sustainable value.
In the Financial Performance Management master's module, you will examine how financial control mechanisms – such as management control systems, cost accounting, transfer pricing, working capital management, and KPI structures – influence choices and behavior in organizations. You will look at how figures are produced, distributed, and presented, and what incentives lie behind them for managers, teams, and departments.
The learning journey starts with the basics of management control: how do you use cost accounting (including Activity-Based Costing) and working capital management to measure performance, evaluate products and customers, and deploy resources in a targeted manner? You will then delve into performance measurement and internal settlement mechanisms: transfer pricing, KPI design, and how internal prices and indicators influence decisions. Finally, you will zoom in on incentives, reward systems, and agency theory: how do you ensure that performance-dependent rewards stimulate behavior that is consistent with long-term value creation, rather than purely short-term results?
In 6 weeks, you will complete an online kick-off, three intensive on-campus days, and an in-depth phase. You will conclude with an assessed assignment based on your own organization or customer case. By combining theory, frameworks, practical examples, and calculation assignments, you will develop both conceptual acuity and concrete tools to analyze and redesign financial control mechanisms and better align them with strategic goals.
Online kick-off
During the online kick-off, you will meet the lecturers and fellow participants and receive an overview of the content and working methods of the master's module. You will explore your learning objectives and possible practical cases, so that you can start the on-campus days in a focused and prepared manner.
Day 1 – Managing with figures and systems
The first day will give you a solid foundation in management control, cost accounting, and working capital. You will examine how financial information, budgets, and cost systems influence choices within organizations, and what limitations traditional cost accounting has. You will work with Activity-Based Costing on a realistic case involving product, customer, or process returns and explore the behavioral effects of various control mechanisms. You will also make the transition to working capital management: how do cash, inventory, accounts receivable, and accounts payable influence performance and risks?
Day 2 – Performance measurement and internal settlement mechanisms
Day 2 focuses on performance measurement in a broad sense. You will delve into transfer pricing: methods, applications, and how internal transfer prices influence decisions about sourcing, internal collaboration, and investments. You will also examine how KPIs are designed and used: which indicators do you choose, how do you prevent inappropriate management, and which combination of financial and non-financial KPIs suits your strategic goals? Using practical examples, you will analyze existing performance measurement systems and identify opportunities for improvement.
Day 3 – Incentives, rewards, and behavior
The third day focuses on incentives, reward systems, and agency theory. You will examine how performance-dependent rewards are designed, what interests and risks are involved, and how reward structures influence the behavior of managers and employees. You will look at the tension between short-term targets and long-term value creation, and at the role of financial and non-financial incentives in promoting cooperation, customer focus, and integrity. Through discussions and case studies, you will work on proposals for better incentive structures in your own organization.
Deepening after the lecture days
After the lecture days, you will continue to work independently with literature, (micro) lectures, and assignments. You will deepen your understanding of the concepts covered, apply them to your own issues, and prepare for the final assignment.
Assessment of your own practice
You will complete the master's module with an assessed assignment that directly relates to your work environment and learning objectives. This will demonstrate that you can translate the most important insights and tools from the module into concrete analyses and improvement proposals for your organization or client.
