Analysing the requirements of performance measurement systems

Stefan Tangen (Stefan Tangen is a Senior Researcher in the Department of Production Engineering, The Royal Institute of Technology, Stockholm, Sweden.)

Measuring Business Excellence

ISSN: 1368-3047

Publication date: 1 December 2005

Abstract

Purpose

Performance measurement is a subject that has been high on the agenda for over two decades. This article proposes making a contribution to this field by discussing how to deal systematically with all the requirements a performance measurement system (PMS) should fulfil.

Design/methodology/approach

Different requirements suggested in the performance measurement literature from the past 20 years have been analysed in order to structure the different tasks to conduct when designing a PMS.

Findings

The article explains how to separate requirements that can be linked to a PMS and to an individual performance measure. It also suggests three system classes depending on what requirements a PMS fulfils. Finally a three‐step procedure is proposed that describes how to evaluate and improve an existing PMS in a company.

Practical implications

In practice, it is difficult to deal with numerous requirements simultaneously when designing a PMS. The article supplies measurement practitioners with tools to identify any priority important requirements.

Originality/value

Several new ideas to the field of performance measurement are introduced and explained: the concept of system classes, classification of requirements and a simple three‐step procedure to evaluate and improve PMS.

Keywords

Citation

Tangen, S. (2005), "Analysing the requirements of performance measurement systems", Measuring Business Excellence, Vol. 9 No. 4, pp. 46-54. https://doi.org/10.1108/13683040510634835

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Publisher

:

Emerald Group Publishing Limited

Copyright © 2005, Emerald Group Publishing Limited

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