Performance measurement system design: developing and testing a process‐based approach

Andy Neely (Cranfield School of Management, Cranfield University, Cranfield, UK)
John Mills (University of Cambridge, Mill Lane, Cambridge, UK, and)
Ken Platts (University of Cambridge, Mill Lane, Cambridge, UK, and)
Huw Richards (University of Cambridge, Mill Lane, Cambridge, UK, and)
Mike Gregory (University of Cambridge, Mill Lane, Cambridge, UK, and)
Mike Bourne (University of Cambridge, Mill Lane, Cambridge, UK, and)
Mike Kennerley (Cranfield School of Management, Cranfield University, Cranfield, UK)

International Journal of Operations & Production Management

ISSN: 0144-3577

Publication date: 1 October 2000

Abstract

Describes the development and testing of a structured methodology for the design of performance measurement systems. Frameworks, such as the balanced scorecard and the performance prism, have been proposed, but until recently little attention has been devoted to the question of how these frameworks can be populated, i.e. how managers can decide specifically which measures to adopt. Following a wide ranging review of the performance measurement literature, a framework identifying the desirable characteristics of a performance measurement system design process is developed. This framework provided guidelines which were subsequently used to inform the development of a process‐based approach to performance measurement system design. The process was enhanced and refined during application in three action research projects, involving major UK automotive and aerospace companies. The revised process was then formally documented and tested through six further industrial applications. Finally the process was written up in the form of a workbook and made publicly available.

Keywords

Citation

Neely, A., Mills, J., Platts, K., Richards, H., Gregory, M., Bourne, M. and Kennerley, M. (2000), "Performance measurement system design: developing and testing a process‐based approach", International Journal of Operations & Production Management, Vol. 20 No. 10, pp. 1119-1145. https://doi.org/10.1108/01443570010343708

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MCB UP Ltd

Copyright © 2000, MCB UP Limited

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