MetricM: a modeling method in support of the reflective design and use of performance measurement systems

Abstract

Performance indicators play a key role in management practice. The existence of a coherent and consistent set of performance indicators is widely regarded as a prerequisite to making informed decisions in line with set objectives of the firm. Designing such a system of performance indicators requires a profound understanding of the relations between financial and non-financial metrics, organizational goals, aspired decision scenarios, and the relevant organizational context--including subtleties resulting from implicit assumptions and hidden agendas potentially leading to dysfunctional consequences connected with the ill-informed use of performance indicators. In this paper, we investigate whether a domain-specific modeling method can address requirements essential to the reflective design of performance measurement systems, and which structural and procedural features such a method entails. The research follows a design research process in which we describe a research artifact, and evaluate it to assess whether it meets intended goals and domain requirements. In the paper, we specify design goals, requirements and assumptions underlying the method construction, discuss the structural specification of the method and its design rationale, and provide an initial method evaluation. The results indicate that the modeling method satisfies the requirements of the performance measurement domain, and that such a method contributes to the reflective definition and interpretation of performance measurement systems.