Remote control: measuring performance for value creation and governance of globally distributed knowledge work

Abstract

This article examines the governance of globally distributed knowledge work. To measure performance in knowledge work, it is important to focus on what the knowledge workers do and hence view knowledge as something one does, namely the practices, instead of something one has. By following the practices of knowledge work, it was possible to evaluate the effect of measures related to organizational processes, and identify what was not well covered by the measurement tool. Strategic and long term needs such as learning and employee competence are better managed through projects. This article shows how work performance in international organizations needs two different measures: one tool for measuring short-term value creation linked to the organizational processes; and, one tool for measuring long-term value creation linked to the practices of service work made in projects. Global governance of distributed employees is therefore successfully managed through key performance measures and through understanding projects through their multiple contributions, at both an individual and an organizational level. Global long term governance needs are strategic for the entire firm. The paper rests on an in-depth empirical case study of an international professional service firm.