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Organizations should set an evaluation standard that works best and according to the times. The various divisions do not necessarily mean you have to evaluate them differently. What’s important is for top level management to discuss and analyze the differences and similarities of each division and create a standard that all divisions will be evaluated upon. Now the ROI is not a bad one to start off with, but I think there can be a one size fits all according to the organization, especially if leadership is thinking outside the box. “In the past, within the corporate practice majority of methods were concentrated to measure corporate performance refers to in particular the financial performance of the company, whereby a basic parameter was considered an indicator of profit. Performance measurement indicators oriented on profitability we consider as traditional” (Rajnoha, Lesníková & Korauš, 2016). I prefer the Division Controllable margin because it puts more responsibility in the hands of division managers. Now the problems that can arise in evaluating differences are the fact that some divisions will not be at the same operating level as others, some divisions may have more responsibility than another just as the example in our text on residual income. “A disadvantage with residual income arises when comparing the performance of divisions of different sizes. For example, a division with $50 million in assets should be expected to have a higher residual income than one with $2 million in assets.” (Schneider, 2017). A proper case made right under our nose. You cannot expect a division to be measured the same under certain conditions that those conditions would only apply to some if they do not apply to all. As another example, fixed overhead cost, variable operating cost may differ in division profits so weather you are using that evaluation as a division or division managers performance you will not get the same results between divisions. Now it makes sense as well as the text stated that top management can select different rates of return for each division because management recognizes different roles that each division has overall in the organization. Measuring performance by different standards is chaos. Another thing that would cause different divisions profits to differ would be for example a start up division which would require a little more attention than a mature one would but there has to be a minimum standard set regardless of how mature or not the division is. Measuring division, A with the denominator – investment measure and division B with ROI would not make sense because each method is completely different which would not be fitting for corporate to do. Top management should select one method then “select different minimum desired rates of return for each division to recognize the unique role each plays in the organization.” (Schneider, 2017).