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Article
Publication date: 18 January 2008

Cory Searcy, Stanislav Karapetrovic and Daryl McCartney

The purpose of this paper is to demonstrate how a systems approach can be used to facilitate the development of an organizational performance measurement system.

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3080

Abstract

Purpose

The purpose of this paper is to demonstrate how a systems approach can be used to facilitate the development of an organizational performance measurement system.

Design/methodology/approach

Based on a review of the literature, the paper introduces the implications for applying a systems approach to organizational performance measurement. To demonstrate the transition from theory to practice, a case study is provided to show how a sustainable development performance measurement system was developed at a Canadian electric utility. The case study involved extensive consultation with over 25 experts.

Findings

The paper finds that a systems approach is useful in developing the process and that a set of formal systems criteria is useful in developing the structure and content of a performance measurement system. These concepts are highlighted throughout the case study example.

Research limitations/implications

The case study section was based on findings from a single organization. Further work is required to validate the findings within other organizations.

Practical implications

The paper shows how a robust sustainable development performance measurement system may be developed at an electric utility. The overarching emphasis on integration of the system with the case utility's mainstream initiatives demonstrates that a performance measurement system must build on what the organization already has in place. The systems‐based approach and formal systems criteria used in the paper may be transferable to other organizations.

Originality/value

The paper shows that a systems approach provides both the structure and flexibility needed to guide the design, implementation, and evolution of a sustainable development performance measurement system within existing organizational infrastructure.

Details

International Journal of Productivity and Performance Management, vol. 57 no. 2
Type: Research Article
ISSN: 1741-0401

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Article
Publication date: 1 June 2000

Umit S. Bititci, UTrevor Turner and Carsten Begemann

Begins by creating a vision for dynamic performance measurement systems and goes on to describe the background to the work. Develops a model for integrated and dynamic…

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13835

Abstract

Begins by creating a vision for dynamic performance measurement systems and goes on to describe the background to the work. Develops a model for integrated and dynamic performance measurement systems. Provides a critical review of existing frameworks, models and techniques against the model. Identifies that current knowledge and techniques are sufficiently mature to create dynamic performance measurement systems. The use of the dynamic performance measurement system is illustrated through a case study. Concludes with a series of lessons highlighting further research and development needs.

Details

International Journal of Operations & Production Management, vol. 20 no. 6
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 1 May 1997

Umit S. Bititci, Allan S. Carrie and Liam McDevitt

The performance management process is seen as a closed loop control system which deploys policy and strategy, and obtains feedback from various levels in order to manage…

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19223

Abstract

The performance management process is seen as a closed loop control system which deploys policy and strategy, and obtains feedback from various levels in order to manage the performance of the business. The performance measurement system is the information system which is at the heart of the performance management process and it is of critical importance to the effective and efficient functioning of the performance management system. Research identifies two critical elements with respect to the content and structure of the performance measurement system. These are: integrity and deployment. The viable systems model (VSM) provides a framework for assessing the integrity of the performance measurement system. The reference model developed for integrated performance measurement systems provides a framework against which performance measurement systems can be designed and audited.

Details

International Journal of Operations & Production Management, vol. 17 no. 5
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 1 March 2005

Ian Robson

To show how measurement systems and the way they are implemented can have a critical impact in either encouraging or discouraging a culture of high performance.

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6332

Abstract

Purpose

To show how measurement systems and the way they are implemented can have a critical impact in either encouraging or discouraging a culture of high performance.

Design/methodology/approach

This paper outlines a “systems view” of organisations that assist in combining the knowledge of both measurement and psychology into a practical approach that encourages a culture of high performance. It outlines examples of measurement systems that have been specifically designed to change perceptions and behaviours. These implementations transformed performance levels within a matter of months.

Findings

When measurement systems are designed using the appropriate psychological principles, there can be a rapid change in staff behaviour that automatically leads to improved performance.

Research limitations/implications

The psychological conditions for improving performance can be readily reproduced, but more research evidence is required to ensure widespread acceptance and use of this approach to performance improvement.

Practical implications

Measurement systems should be designed and implemented from a psychological and performance control perspective. When they are designed in this way, organisations can rapidly achieve substantial improvements in performance.

Originality/value

This paper shows how, by combining critical aspects of psychology with the knowledge of measurement within organisations, measurement systems can be designed and implemented to encourage a complete culture of high performance. The approach can assist all managers that want to change both the culture of their organisations whilst simultaneously improving overall performance.

Details

International Journal of Productivity and Performance Management, vol. 54 no. 2
Type: Research Article
ISSN: 1741-0401

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Article
Publication date: 15 March 2013

Sanna Pekkola

The purpose of this paper is to examine how different network members utilize and use network‐level performance measurement information. This is an important approach when

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1123

Abstract

Purpose

The purpose of this paper is to examine how different network members utilize and use network‐level performance measurement information. This is an important approach when discussing the management and development of a network by utilizing a performance measurement system.

Design/methodology/approach

The study is a single‐case study, where a collaborative network forms the case. The data of the study have been gathered from an action research process of network performance measurement system design and its implementation phase in 2009, interviews in 2010, and discussions with the interviewees in 2012 to re‐evaluate the results.

Findings

The results of the study reveal that the use of the network‐level performance measurement system increased communication, trust, and commitment in the whole network, as well as in a single reselling unit. The performance measurement information also helped the companies create better alignment with their network partners.

Practical implications

The paper presents the main uses, utilizations and benefits of network‐level performance measurement and management from the perspectives of the different network members.

Originality/value

The case study contributes to the literature of performance measurement and management in a network environment. It presents the main uses and utilization of network‐level performance management and measurement.

Details

Measuring Business Excellence, vol. 17 no. 1
Type: Research Article
ISSN: 1368-3047

Keywords

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Article
Publication date: 6 April 2010

Ad Straub, Marnix Koopman and Henk‐Jan van Mossel

This paper intends to ascertain a general guideline for performance measurement and management by social enterprises, combining public and private tasks.

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1895

Abstract

Purpose

This paper intends to ascertain a general guideline for performance measurement and management by social enterprises, combining public and private tasks.

Design/methodology/approach

The conceptual systems approach is used as a framework. Maintenance service delivery by Dutch housing associations is used as a case study to show how the conceptual systems approach to performance measurement can be helpful to address the managerial problems of social enterprises, the actors involved and the possible consequences of new policies and interventions.

Findings

The system approach to performance measurement has the tools to bring transparency to the aims and means of the various participants in the production process of social enterprises having complex aims and tasks both in the market and in the public domain. The identification of key performance indicators, as well as the input, throughput, output and outcome indicators, ensures the effectiveness and efficiency of the internal business process and also covers the accountability to external stakeholders.

Research limitations/implications

The conceptual systems approach to performance measurement was tested by Dutch housing associations. Researchers are encouraged to test the conceptual systems approach to performance measurement in other social enterprises.

Practical implications

The complexity of the public housing sector and generally social enterprises needs transparent performance measurement. This complexity – due to dynamics in the surroundings – also causes measurement problems. When deciding on performance indicators it is essential to gain a clear idea of the manageable and unmanageable dynamics and to adjust the performance measurement system accordingly.

Originality/value

The importance of performance measurement by social enterprises is growing. The paper shows how the conceptual systems approach can still be very helpful to identify performance indicators combining tasks in the market and public domain.

Details

Facilities, vol. 28 no. 5/6
Type: Research Article
ISSN: 0263-2772

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Article
Publication date: 15 June 2010

Roland Jochem, Martin Menrath and Katja Landgraf

The performance measurement system reflects the corporate strategy and overall business objectives of an organization. The alignment of the performance indicators with the…

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2937

Abstract

Purpose

The performance measurement system reflects the corporate strategy and overall business objectives of an organization. The alignment of the performance indicators with the company's critical operating factors, and the processes having bottle‐necks alongside the value chain, could result in a very compact, target‐oriented, and quality‐based performance measurement system. This paper aims to investigate this issue.

Design/methodology/approach

The quality‐based performance measurement system is developed by integrating the existing performance indicators of an organization with those of best‐in‐class management practices. The organizational processes included range from business leadership to the operational level. The key performance indicators (KPIs) depict the existing status transparently and comprehensively, whereas later on they can be used to control the processes with the pre‐defined values/measures. The KPIs of a process are documented and standardized once they are implemented. An action plan is then developed to write down the prerequisite for the new KPIs and to prioritize the existing ones for the sake of improvement.

Findings

It is affirmed that most of the employees had found the performance measurement system a very useful tool to tightly control the flow of their processes. It is very important to mention that this system does not mean giving way to another flood of information; instead it is designed to support the company's decision‐making process through target‐oriented indicators that could be compared with the existing best practices.

Originality/value

The concept described is aimed at developing and implementing a quality‐based performance measurement system within an organization. This system is developed through comparing the existing organizational practices with those having been labelled “Best‐in‐class” and it provides an alternative to the Balanced Score Card approach.

Details

The TQM Journal, vol. 22 no. 4
Type: Research Article
ISSN: 1754-2731

Keywords

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Article
Publication date: 1 February 1997

Umit S. Bititci, Allan S. Carrie and Liam McDevitt

The performance management process is seen as a closed loop control system which deploys policy and strategy, and obtains feedback from various levels in order to manage…

Downloads
3969

Abstract

The performance management process is seen as a closed loop control system which deploys policy and strategy, and obtains feedback from various levels in order to manage the performance of the business. The performance measurement system is the information system which is at the heart of the performance management process and it is of critical importance to the effective and efficient functioning of the performance management system. Research identifies two critical elements with respect to the content and structure of the performance measurement system: integrity and deployment. The viable systems model (VSM) provides a framework for assessing the integrity of the performance measurement system, while the reference model developed for integrated performance measurement systems provides a framework against which performance measurement systems can be designed and audited.

Details

The TQM Magazine, vol. 9 no. 1
Type: Research Article
ISSN: 0954-478X

Keywords

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Book part
Publication date: 23 September 2014

Chong M. Lau and Vimala Amirthalingam

Research on how performance measurement systems affect employees’ perceptions of workplace fairness is important. As organizations often rely on their performance

Abstract

Research on how performance measurement systems affect employees’ perceptions of workplace fairness is important. As organizations often rely on their performance measurement systems to communicate information to their employees, it is useful to ascertain if and how the developments of performance measurement systems that are far more comprehensive than traditional financial systems affect employees’ perceptions of informational fairness through the information communicated to employees. Informational fairness refers to employees’ perceptions of workplace fairness that is based on the amount and the truthfulness of information that organizations provide to their employees. Based on a sample of managers from manufacturing organizations, the Partial Least Square results indicate that comprehensive performance measurement systems (comprehensive PMS) have a significant direct effect on job-relevant information. They also indicate that comprehensive PMS have an indirect effect on informational fairness via job-relevant information. In contrast, systems that are based on financial measures have no significant effects on job-relevant information and informational fairness. These results demonstrate how comprehensive PMS (through the communication of a greater amount of job-relevant information) can be used to engender employees’ perceptions of high workplace fairness.

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Book part
Publication date: 8 April 2005

Petri Suomala

The essential investments in new product development (NPD) made by industrial companies entail effective management of NPD activities. In this context, performance

Abstract

The essential investments in new product development (NPD) made by industrial companies entail effective management of NPD activities. In this context, performance measurement is one of the means that can be employed in the pursuit of effectiveness.

Details

Managing Product Innovation
Type: Book
ISBN: 978-1-84950-311-2

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