Forward performance measurement and management integrated frameworks
International Journal of Accounting & Information Management
ISSN: 1834-7649
Article publication date: 10 October 2008
Abstract
Purpose
In recent years, performance measurement and management (PMM) has received much attention from researchers and practitioners. Despite the growing use of PMM systems, companies experience difficulty in implementing such systems, with consequent risk of partial benefits or total goal failure. The literature on PMM is quite vast, but only few of the models address the problem in its entirety, while many other works focus on specific issues related to PMM. The purpose of this paper is to analyze the state of the art of PMM models and propose an integrated framework as a base for performance measurement and management design.
Design/methodology/approach
The evolution of the literature on PMM models and frameworks is highlighted starting from the development of the last twenty years. Further, the characteristics raised in the literature are merged so as to identify the milestones of an integrated performance measurement and management system. Based on it, an integrated framework is proposed as a base for a cohesive PMM design.
Findings
The framework integrates five systems: a performance system, a cost system, a capability evaluation system, a benchmarking system and a planning system.
Research limitations/implications
Though the proposed framework is a starting point for performance measurement and management design, it provides important guidelines for successful implementations of PMM initiatives inside companies.
Practical implications
The paper elaborates on the findings in the literature through a review and explores how the framework proposed might be implemented and improved.
Originality/value
The framework is based on the belief that PMM study requires an intensive and deep comprehension of the business in focus, which begins with a complete analysis of all the key activities in the company and their related drivers. Accordingly, the framework proposed starts with a defining “which” information should be analyzed, “how” they should be processed and “how” they should be integrated for generating valuable information to facilitate managers' decision‐making processes.
Keywords
Citation
Taticchi, P. and Balachandran, K.R. (2008), "Forward performance measurement and management integrated frameworks", International Journal of Accounting & Information Management, Vol. 16 No. 2, pp. 140-154. https://doi.org/10.1108/18347640810913807
Publisher
:Emerald Group Publishing Limited
Copyright © 2008, Emerald Group Publishing Limited