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This paper seeks to measure in a quantitative way the degree of alignment among a set of performance measures between two organizations.

This paper extends Venkatraman's test of coalignment to assess the alignment of a set of performance measures governing a contractual inter‐organizational relationship. The authors applied the test and present coefficients of misalignment across three sets of measures: those used by a service provider involved in the research, those used by customers contracting the services, and those documented in 11 contracts studied.

Results confirmed a high degree of alignment between target and actual operational performance in the contracts. The alignment of customers' financial objectives and contracts' operational metrics was low. Calculations show poor alignment between the objectives of the provider and the contribution received from the contracts.

Some limitations of the conclusions include the small sample of contracts used in the calculations. Further research should include not only actual contracts, but also failed ones.

It is possible that misaligned goals, represented in misaligned performance measures, lead to tensions in intra‐firm relationships. If these tensions are not addressed properly the relationship could be unstable or terminated prematurely. This method of measuring alignment could detect early potential dangers in intra‐firm relationships.

This paper extends Venkatraman's test of coalignment to assess the alignment of a set of performance measures governing a contractual inter‐organizational relationship. Management researchers and business professionals may use this methodology when exploring degrees of alignment of performance measures in intra‐functional and inter‐firm relationships.

This article explores the importance, measurement and use of non‐financial performance measures in the wine industry. Results are compared to a similar study done on US Fortune 500 and Canadian Post 300 companies. Findings indicate that a large percentage of US wineries believe in the importance of non‐financial performance measures, especially in the areas of process/product quality and overall customer satisfaction. On average, less than half the wineries are actually measuring for these factors. Also, while some wineries measure non‐financial performance, they then do not use the results of their findings in making strategic business decisions. The wineries differed from the Fortune 500 and Post 300 companies in that they ranked the measurement of employee involvement much higher in importance and market performance measurement much lower in importance.

The traditional cost accounting‐based business performance measures used today fail to provide adequate support to allow the use of modern management techniques and development of optimum business and functional strategies. Although these traditional techniques have a certain value they must be supported by alternative non‐financial performance measures which promote organizational integration by ensuring that all strategic and operational activities are streamlined towards common objectives. Describes, with case studies, a methodology which leads to development of an integrated set of performance measures on which measurable business and functional strategies may be developed. The methodology described has been proven through a number of industrial consultancy assignments and results in considerable benefits.

The purpose of this paper is to present the results of a survey study on quality performance measurement practices in the Turkish top 500 manufacturing companies. The study evaluates both financial and non‐financial aspects of quality performance measures in Turkish manufacturing companies.

The methodology of the study was a postal questionnaire survey. The survey was conducted with the top 500 industrial enterprises in Turkey specified by the Istanbul Chamber of Industry (ICI) for the year 2005. These firms are selected and ranked by ICI according to production‐based sales.

Two major findings of the study are: Turkish manufacturing companies utilize non‐financial measures more frequently than financial measures; and Turkish managers perceive non‐financial measures to be more effective than financial measures.

The sample is restricted to the top 500 industrial enterprises in Turkey. As the data in this study were collected from the manufacturing companies, the findings should not be generalized to other sectors.

The study is unique in reflecting the general practices and perceptions of manufacturing companies on quality performance measures across Turkey.

A common justification for state term commodity contracts is that they are beneficial to taxpayers because of savings that result from the price concessions expected from volume purchasing. With the growing popularity of performance based budgeting in state legislatures, there is a clear need for performance measures to document these taxpayer benefits. Based on a survey of state purchasing offices and a review of the major purchasing associations and the academic literature, this paper develops guidelines and a set of performance measures for evaluating the financial benefits of state term commodity contracts.

Amidst the complicated nature of the UAE’s facilities management (FM) industry, the need to recalibrate the existing performance measurement (PM) system measures and criteria has been resonating to ensure their ability to capture the FM industry trends and dynamics, thus enhancing organizational excellence. Therefore, this research aimed to propose a specific PM tool to the country’s FM industry to accurately assess performance and establish strategic enhancements.

The study reviewed literature on the available PM systems to gather the available measures, which were presented to a focus group of seven participants, who were purposively selected based on their expertise in FM and PM implementation in the UAE to adjust them and add ones relevant to the UAE’s FM industry.

The focus group conducted various changes, from retaining certain measures and criteria, renaming them to simplify or make them more representative of the industry, ranking them based on their importance to limit their numbers, to finally categorizing them as enablers or results. Consequently, the final proposed tool was composed of nine dimensions with 51 measures as performance enablers and three dimensions with 11 measures as performance results. Seven measures were added by the experts, who highlighted their increasing popularity in the UAE’s FM industry.

Through addressing the critical void in literature, this paper develops a specific PM tool aligning with the intricacy of the UAE’s FM industry, thus providing proactive contribution to the industry’s effective and sustainable growth.

As a result of the changing environment, business organizations need to redefine their goals and strategies and adopt new practices. The success of these changes greatly depends on the company’s ability in development and use of an effective set of performance measures. The traditional financial measures are often inappropriate and insufficient; and management faces some obstacles in their efforts to develop new non‐financial measures. This article discusses three main obstacles: What to measure? How to collect data? And, how to get managers to use the new measures? Some guides to overcoming these obstacles are presented.

The problem of using management accounting techniques to measure managers' performance in the service sector is examined. The essence of the problem, it is argued, is that organisations are being judged externally on one set of criteria while the internal control system measures a different set of criteria. Using a management accounting perspective the article identifies the dominance of accounting measures in performance measurement and demonstrates how this has led to dysfunctional behaviour of managers. It is then proposed that a control system be developed that aims to achieve organisational control by the specification of a range of control measures. Measures of finance, customer service, resource utilisation, employee attitudes and service development should be included. Furthermore, no one set of measures can be expected to satisfy all organisations, the exact set and relative weighting of each component being determined by the particular organisation's objectives.

Discusses the need for measurement within the management process, specifically the need for performance indicators. Examines the management process relating to performance to construct an action plan for defining performance indicators. Surmises that the important thing is to construct performance measures which are recognized as fair and enable the organization to look for improvements and evaluate progress.

The management control and performance measurement literature reflects a long history of discussion related to organizational, team, and individual rewards. Yet, much of the research and guidance in the academic and managerial literature has been inadequate. Reflecting work on three current research studies, this chapter examines the gaps in our current understanding of the relationship of performance measurement, rewards, and performance and suggests some research questions that are of significant interest.