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Purpose – The purpose of this chapter is to present a state of the art of performance measurement and management control systems based on the papers presented in the 6th Conference on Performance Measurement and Management Control in Nice, France, 2011. The chapter is structured around two main topics: performance measurement and control systems.

Methodology/approach – The chapter is based on a thorough review of all the papers presented at the conference. Each paper was classified according to the topic it dealt with and the methodology used in the paper.

Findings – We structure the papers around the following topics: cost measurement and management, mapping the landscape, financial measures, nonfinancial performance frameworks, performance measurement design, sector-specific measures, and marketing measures within performance measurement. The topics identified in management control systems are compensation, management control systems' design, motivational aspects, strategy, risk management and enterprise software, governance, nonprofit organizations, and innovation.

Research limitations/implications – The chapter provides a comprehensive review of these topics. The review is limited to the selection bias implicit in the papers submitted to the conference. However, with almost 200 papers, the conference includes a large set of papers and topics. The analysis indicates that the field is dynamic with close connections to practice and promising research lines.

Practical implications (if applicable) – This state-of-the-art review reveals relevant research findings for companies and organizations. It also indicates that the research community is tackling important issues to society and the evolution of research promises to offer interesting alternatives to tackle these problems.

Social implications – Performance measurement and management control systems are important topics for management. Recent work is extending the implications of these fields beyond companies to include nonprofit organizations and public sector departments. Advances will definitely shape the way societies are designed.

Originality/value of chapter – The chapter provides a review of the field based on the contributions at the conference. As such it portrays the state of the field and gives researchers as well as practitioners a quick way to update their knowledge of the topics that are dominating the field.

This paper aims to improve our understanding of performance measurement systems in the health and care sector, by focussing on employee reactions to core performance measurement practices. Targets and monitoring are hypothesised to be associated with employee perceptions of job control, supportive management and job demands, which in turn, are expected to be linked to employee-wellbeing and organisational commitment.

Matched employee workplace data are extracted from a nationally representative and publicly available survey. Structural equation models are estimated.

Performance measurement systems are neither perceived as resources nor additional demands. Setting many targets and a focus on productivity can lead to negative employee outcomes, since these positively correlate with perceptions of job demands, which negatively correlate with employee wellbeing. However, monitoring financial performance and monitoring employee performance may be helpful to managers, as these are positively associated with employee perceptions of job control and supportive management, which positively correlate with job satisfaction and organisational commitment and, negatively, with anxiety. Overall, common criticisms of performance measurement systems in healthcare are questioned.

Given the lack of consensus on how performance measurement systems can influence employee experiences and outcomes, this study combines theories that argue for performance measurement systems in managing operations with models developed by psychologists to describe how perceptions of the work conditions can affect employee attitude and wellbeing. A conceptual model is therefore developed and tested, and potential direct and indirect effects of performance measurement systems in the health sector are inferred.

The aim of this study is to empirically explore and analyze the concrete tasks of output measurement and the inherent challenges related to these tasks in a traditional and autonomous professional public work setting – the judicial system.

The analysis of the tasks is based on a categorization of general performance measurement motives (control-motivate-learn) and main stakeholder levels (society-organization-professionals). The analysis is exploratory and conducted as an empirical content analysis on materials and reports produced in two performance improvement projects conducted in European justice organizations.

The identified main tasks in the different categories are related to managing resources, controlling performance deviations, and encouraging improvement and development of performance. Based on the results, key improvement areas connected to output measurement in professional public organizations are connected to the improvement of objectivity and fairness in budgeting and work allocation practices, improvement of output measures' versatility and informativeness to highlight motivational and learning purposes, improvement of professional self-management in setting output targets and producing outputs, as well as improvement of organizational learning from the output measurement.

The paper presents empirically founded practical examples of challenges and improvement opportunities related to the tasks of output measurement in professional public organization.

This paper fulfils an identified need to study how general performance management motives realize as concrete tasks of output measurement in justice organizations.

This study aims to explore the potential dynamics between performance measurement at the organisational level and emerging urban development projects at the macro-institutional field level of sustainability governance and accountability.

Using a theoretical triangulation between three theories, namely contingency theory, institutional theory and social cognitive theory, this study investigates not only the macro-micro dynamics, but also the (recursive) micro-macro dynamics between performance measurement and urban development. Using an Egyptian public sector urban development organisation and its sustainable energy project as an empirical example, interviews, documents and observations were collected.

The dynamics emerged between field urban development projects and the (unintended) organisational implementation of the performance measurement system, the sustainability key performance indicators (KPIs) reporting system. Contributing to previous literature, these dynamics have been institutionalised through (three) interrelated levels: the (macro-field) urban development contingencies and pressures for sustainability KPIs reporting, the (organisational) institutionalisation of the urban development performance measurement system and then the (micro-organisational) cognitive role of sustainability KPIs reports in (re)making political urban development decisions.

This study faced some limitations that paved the way for future research axes. For political and security reasons, difficulties were encountered in conducting interviews with government actors in the sustainable energy project under study. Also, due to the practical separation of the environmental sustainability system from the sustainability KPIs reporting system in this case study, environmental sustainability is outside the scope.

Sustainability reports may influence public sector decision-making processes in a specific urban development context. These KPIs reports may also increase public sector management opportunities for urban auditing, transparency, accountability and sustainability governance. These KPIs may also guide public sector management to lower prices in poor villages to increase smart energy consumption and improve community health.

Sustainability reports may increase decision-makers' understanding of consumer behaviours and societal changes. This may help in making appropriate political decisions to improve their welfare and regular smart energy consumption. Not only urban citizens, but this social advantage may also extend to urban development employees through employees' promotion, training and access to government-funded academic and professional scholarships.

This study is an attempt to develop current public sector performance measurement analyses in the emerging urban development field using a triadic analytical approach. This study also fed the literature with an extended case study that clarified the (multi-level) and (two-way) dynamics between performance measurement and urban development.

The paper identifies six requirements: four critical dimensions (what to measure) and two characteristics (how to measure) of an overall manufacturing performance measurement system. The overall equipment effectiveness (OEE) measure in such a system is assessed against these ideal requirements. The current measurement systems, and the potential of OEE, of three manufacturing organisations are evaluated with the dimensions and characteristics as comparative data. A common weakness of the systems was that they did not measure flow orientation or external effectiveness to any great extent. Another weakness was a high degree of complexity and lack of continuous improvement. Field experiments in the studied organisations showed that use of OEE in combination with an open and decentralised organisation design could improve several of those weaknesses.

The design, implementation and use of adequate performance measurement and management frameworks can play an important role if organisations are to succeed in an increasingly complex, interdependent and changing world. Yet, despite widespread recognition of the importance of performance assessment, there are some issues that require further study if measurement systems are to be effective in the process of management through monitoring and decision making. This article proposes and seeks to illustrate that the use of system dynamics and multicriteria decision analysis, as part of a broader framework for performance measurement, can address some of the issues identified. The use of these approaches, independently and in an integrated manner, provides a means of exploring the dynamic complexity of organisations, making explicit trade‐offs between performance measures, and assessing the impacts of initiatives to improve performance, thereby enhancing understanding and ultimately contributing to the improvement of organisational performance.

A number of approaches have been suggested in the literature for maintenance performance measurement, including use of the balanced scorecard (BSC). However, its application towards assessing maintenance contribution to business objectives is limited. Currently, a framework integrating maintenance activities in a supply chain environment is lacking in the literature. The purpose of this paper is to develop a maintenance performance measurement framework using BSC for multi echelon repair inventory systems (MERIS) comprising of modular electronic equipment. The paper also suggests a large number of performance measures/indicators (PMs/PIs) pertaining to both maintenance and supply chain components including a few BSC implementation issues for such types of supply chains.

The paper analyses a base model of a large maintenance organization and after carrying out SWOT analysis, identifies strategic themes/objectives for performance measurement. Performance measures for various objectives are identified for MERIS and implementation strategy including cascading of BSC is suggested. The developed performance measurement model is also validated using an action research (AR) based approach.

A performance measurement system (PMS) for MERIS using BSC approach has been developed and an implementation strategy suggested. AR methodology is used for developing BSC for an organization using the selected performance measures. The importance of cause‐effect relationships between various performance objectives and measures is also established.

Quantification of each of the developed PMs/PIs and establishing an effective information system for MERIS are the limitations of the present work and may be taken up for more research.

The paper will be useful for practitioners in the field of MERIS of electronic repairables wherein relevant PMs/PIs can be selected for implementation as per the requirement of the application.

The paper is of value by being original, as no work towards performance measurement of MERIS using BSC concept (as applicable for non‐profit organizations like military, government, NGOs etc) is reported in literature so far. The paper is relevant in this context and its contribution lies in the area of performance measurement.

This his paper focuses on a specific aspect of Value‐Based Management (VBM), the design of performance measurement systems. This remains an important challenge not only in Management Accounting but also in Human Resources Management. Performance measurement on various levels of organisation should be aligned to value creation, and management compensation should be tied to the achievement of targets set to these measures according to VBM proponents. In the present article definitions of concepts and issues associated with the design of performance measurement systems are discussed. Furthermore, the paper presents a review of four tools available to measure and manage intangible resources: human resource accounting, economic value‐added (EVA), balanced scorecard (BSC) and intellectual capital (IC). The role of non‐financial measures is also analysed from a VBM framework. Finally, some concluding remarks are highlighted in the last section.

The purpose of this paper is to provide an overview of research and development in the measurement of maintenance performance. It considers the problems of various measuring parameters and comments on the lack of structure in and references for the measurement of maintenance performance. The main focus is to determine how value can be created for organizations by measuring maintenance performance, examining such maintenance strategies as condition‐based maintenance, reliability‐centred maintenance, e‐maintenance, etc. In other words, the objectives are to find frameworks or models that can be used to evaluate different maintenance strategies and determine the value of these frameworks for an organization.

A state‐of‐the‐art literature review has been carried out to answer the following two research questions. First, what approaches and techniques are used for maintenance performance measurement (MPM) and which MPM techniques are optimal for evaluating maintenance strategies? Second, in general, how can MPM create value for organizations and, more specifically, which system of measurement is best for which maintenance strategy?

The body of knowledge on maintenance performance is both quantitatively and qualitatively based. Quantitative approaches include economic and technical ratios, value‐based and balanced scorecards, system audits, composite formulations, and statistical and partial maintenance productivity indices. Qualitative approaches include human factors, amongst other aspects. Qualitatively based approaches are adopted because of the inherent limitations of effectively measuring a complex function such as maintenance through quantitative models. Maintenance decision makers often come to the best conclusion using heuristics, backed up by qualitative assessment, supported by quantitative measures. Both maintenance performance perspectives are included in this overview.

A comprehensive review of maintenance performance metrics is offered, aiming to give, in a condensed form, an extensive introduction to MPM and a presentation of the state of the art in this field.

Performance measures form an important feedback‐loop in strategic change which represents a process of constant learning. However, complete learning can only be achieved if a performance measurement system takes into account different value systems that exist within an organization and adapts dynamically to changes in the competitive environment. First establishes the role that performance measures play in the process of strategic change. An approach for the design of performance measurement systems for use in strategy evaluation and implementation is then presented. Finally, demonstrates the ways in which a performance measurement system can be made flexible to account for changing conditions.