Implementation Of Performance Measurement System Research Articles

Implementing a performance measurement system in Croatia

PurposeThe paper's aim is to describe the problems encountered when a performance management system such as the balanced scorecard (BSC) is implemented in the culture of a developing country.Design/methodology/approachThe article is based on a case study of a government agency in Croatia that initially wanted to purchase information technology software but discovered that it did not have a performance measurement system on which to base the software.FindingsNational and organizational cultures influence the degree of difficulty of implementing performance measurement systems such as the BSC. Exactly which cultural aspects and the degree that they create difficulty have only recently been studied in academic literature. The paper identifies several factors in common with previous studies, but also finds that some factors identified in other studies did not play a significant role in Croatia, while problems occurred in Croatia that have not been mentioned in previous research.Practical implicationsThe authors emphasize the importance of adjusting performance measurement systems to the specific cultures in developing countries as well as modifying performance indicators to include the impact of information technology on performance indicators.Originality/valueThe paper emphasizes the importance of adjusting performance measurement systems to the specific cultures in developing countries as well as modifying performance indicators to include the impact of information technology.

THE CORRELATION AMONG THE FACTORS OF IMPLEMENTATION, THE SYSTEM DEVELOPMENT, AND THE RESULT OF PERFORMANCE MEASUREMENT SYSTEM: A Study Conducted in The Regency of Sumba Timur

This study is aimed to examine the relationship among factors determining the success or failure of the implementation of performance measurement systems with the development of performance measurement systems, performance accountability, and the use of performance information in the government institutions and to examine the impacts of the development of performance measurement systems on the performance accountability and the use of performance information.This research was carried out in the Local Government of East Sumba Regency. The research respondents were the government officers of Echelon II, III, and IV. The samples were selected using purposive sampling. 509 questionnaires were distributed and 267 were used. Data were analyzed using Ordinary Least Square (OLS). This research finds that organization culture and resources have relationship with the development of performance measurement systems. In contrast, the limited information systems, difficulties in determining the performance metrics, management commitment, decision-making authority, and training do not have relationship with the development of performance measurement systems. The limited information systems, difficulties in determining the performance metrics and training do not have relationship with the performance accountability, but management commitment, decision-making authority, organization culture, and resources have relationship with the performance accountability. The difficulties in determining the performance metrics, decision-making authority, organization culture, and resources have relationship with the use of performance information, whereas the limited information systems, management commitment, and training do not have relationship with the use of performance information. Further, the development of performance measurement systems directly influences the performance accountability and the use of performance information and indirectly influences the use of performance information through the performance accountability. Keywords: performance measurement, performance accountability, performance information, local government

Quality improvement and redesign of performance measurement systems: an application to the academic field

The increasing competition both in the public and private sectors gave rise to a growing interest in quality improvement and in designing and implementing Performance Measurement Systems (PMS). Academic organizations also recognized the need for implementing performance measurement systems. Some recent works on PMS in the higher education make use of the Kaplan and Norton’s Balanced Scorecard (BSC) to translate the characteristic strategic goals (e.g. research and teaching excellence) into performance measures. However, a PMS needs to be updated when external or internal changes influence the organization modus operandi. In this way a continuous quality improvement of organization performance is required. This paper describes a methodology based on the BSC model to redesign a current PMS. In detail, a reference BSC-check matrix is proposed. A “mapping analysis” of the current PMS is developed to understand if all the operational aspects involved in goals achievement are considered and if proper indicators have been defined. As an example, the methodology is applied to a Department of the authors’ own University. The paper shows also how the proposed approach can be extended to other contexts.

Performance measurement system implementation using Balanced Scorecard and statistical methods

PurposeThe purpose of this study is twofold: first, to design and implement a performance management system using third‐generation Balanced Scorecard (BSC) and statistical methods in an Iranian black carbon producer (Company A) to achieve its main strategy and vision; and second, to compare and evaluate some strategic measures of the company against those of a leading company in this industry in Iran (Company B) and those of a Thai company (Company C) to identify any possible gaps, so that the management of Company A can move toward filling such gaps.Design/methodology/approachThe strategic objectives of the company as well as the measures of each perspective of the BSC were determined. In addition to studying all related documents of the company and conducting interviews, two self‐administered questionnaires were designed and distributed amongst a total of 24 managers or experts in the company. Statistical methods were used to select strategic objectives and measures.FindingsThis paper illustrates how the use of a combined approach of statistical methods and BSC could help organisations to design and implement a sound performance measurement system. Also the result of the comparison with the two companies previously mentioned revealed that the case company is lagging in most of the measures, necessitating the execution of necessary initiatives on these measures to fill the existing gaps.Practical implicationsThe paper establishes the basis for integrating and using statistical methods for selection of strategic objectives and measures of BSC and paving the way for implementation of a performance management system, particularly the third‐generation BSC.Originality/valueThis study integrates statistical methods and third‐generation BSC techniques to design and implement a performance measurement system in an Iranian black carbon production company.

Application of benchmarking method in the construction companies

The paper presents a benchmarking method dealing with identification of measurable business performance indicators in order to make comparison with the "Best in Class". Fields of application, some classifications in use and benchmarking process phases are outlined. The paper describes systems used in construction companies in different countries (Chile (CDT), USA (CII), Brazil (SISIN) and United Kingdom (KPI)) which indicate the requirements related to the use of performance measures for benchmarking in the construction industry and identify key factors of effective design and implementation of performance measurement system.

Using performance measures in public organisations: challenges of Italian public administrations

PurposeThe purpose of this paper is to investigate the main challenges related to the use of performance measures in public organisations in order to identify the factors affecting the adoption and implementation of performance measurement systems. The empirical analysis is focused on the Italian Institutions.Design/methodology/approachThis paper is based on a two‐stage research process. First a systematic literature review has been carried out with the aim of identifying the factors enabling and hampering the adoption of performance measures in public organisations. Second on the basis of the results of the desk analysis a survey‐based investigation has been implemented involving Italian public institutions.FindingsThe paper provides a twofold contribution. It analyses the factors affecting the adoption and implementation of performance measures in public organisations. On the other hand it presents the descriptive statistical results of the survey highlighting the position of Italian institutions with regard to the use of performance measures. This allows an assessment of the cultural, political and rational factors influencing the deployment of measures in Italian institutions.Research limitations/implicationsThe conceptual analysis has a general validity, whilst the empirical investigation is focused on the Italian context. The framework proposed in this paper allows the identification of the factors affecting the exploitation of performance measures in public organisations. It can be applied in any public organisational context. The empirical evidence is context‐specific and related, in particular, to the Italian local governments. Some main managerial implications are addressed that can support managers to apply performance measurement systems in public organisations.Originality/valueThe paper sheds light on a fundamental issue related to the implementation of performance measurement systems in public organisations. It addresses what are the factors that matter in order to make sure that performance measures are effectively employed to run everyday working activities. Indeed in many public organisations PMSs are something nice to have, but with little practical application.

Collective action in the implementation of a “greener” performance measurement system

PurposeThe purpose of this paper is to investigate how different actors influenced the implementation of an environmental management system (EMS) and a performance measurement system (PMS) in a case company when the systems are eventually integrated. Another purpose is to illustrate how the frameworks of Gibson and Earley and Lovaglia et al. can be utilized to investigate the implementation of different management systems in practice.Design/methodology/approachThis paper is an interpretative case study, which utilizes qualitative methods such as semi‐structured interviews and internal documents.FindingsThe results indicate the importance of maintaining a separation between the power and status of an actor in EMS and PMS implementation processes, and the ways in which the power and status of actors in the EMS and PMS implementation differed. The status and role of an actor can change although the power may be static during the implementation of different management systems. Therefore, the paper confirms the classification of Lovaglia et al. and proposes that their classification should be added to the framework of Gibson and Earley.Originality/valueEarlier accounting studies using the institutional theory framework of Burns and Scapens did not specifically investigate the role of actors, or their power and status in implementing two different management systems. The collective action frameworks of Gibson and Earley and Lovaglia et al. have not been practically utilized before in EMS and PMS studies. Furthermore, EMS and PMS integration studies have usually been normative without empirical case data.

Challenges and strategies in applying performance measurement to federal public health programs

Performance measurement is widely accepted in public health as an important management tool supporting program improvement and accountability. However, several challenges impede developing and implementing performance measurement systems at the federal level, including the complexity of public health problems that reflect multiple determinants and involve outcomes that may take years to achieve, the decentralized and networked nature of public health program implementation, and the lack of reliable and consistent data sources and other issues related to measurement. All three of these challenges hinder the ability to attribute program results to specific public health program efforts. The purpose of this paper is to explore these issues in detail and offer potential solutions that support the development of robust and practical performance measures to meet the needs for program improvement and accountability. Adapting performance measurement to public health programs is both an evolving science and art. Through the strategies presented here, appropriate systems can be developed and monitored to support the production of meaningful data that will inform effective decision making at multiple levels.

Constructing performance measurement in the public sector

This article investigates the process of translating Performance Measurement Systems (PMSs) into operational use, in the context of public sector reforms. Drawing on Actor-Network Theory, the article examines the Good Practice project, an 11-year PMS implementation in Italian universities. Analysing this experience, the article shows how controversies play a central role in the process of translation, as essential risks for revitalising the PMS. Furthermore, it underscores the heterogeneity of actors’ stratagems, giving voice to louder as well as weaker participants, who all proved crucial to the vitality of the PMS, by raising unexploited and unresolved issues within the network.

Is performance measurement suitable for an extended enterprise?

PurposeThe purpose of this paper is to assess whether performance measurement literature and as a result, practical applications, models and frameworks drawing from this literature are compatible with the central features of extended enterprises.Design/methodology/approachThe paper is based on a bibliometric study that is supplemented with an empirical case study.FindingsThe results of this paper indicate that literature on performance measurement and literature on extended enterprises are only partially compatible. The common underlying reasons for measuring performance are highly valid also in the context of an extended enterprise. However, performance measurement processes and practices utilized within firms are to a considerable degree incompatible with central characteristics of extended enterprises. A highly apparent conflict between the two streams of literature is related to choosing individual performance measures (i.e. the question of what to measure). Performance measurement literature emphasizes intra‐organizational measures which conflicts starkly with the emphasis of inter‐organizational collaboration dominant in literature addressing extended enterprises.Research limitations/implicationsThe sample consists of articles published in many leading academic journals. The primary implication of this paper is that the importance of inter‐organizational relations and collaboration, and the lack of a central decision‐making authority should be taken into consideration when designing and implementing performance measurement systems for extended enterprises.Practical implicationsManagers implementing performance measurement systems may tend to adopt solutions recommended by industry actors and dominant performance measurement literature. As increasingly many firms operate as a part of an extended enterprise, the adoption of these off‐the‐shelf solutions poses considerable risks.Originality/valueThe main contribution of this paper is that it systematically assesses the compatibility of performance measurement and extended enterprise literature by means of a bibliometric analysis. In addition, the paper identifies key contributions from both streams of literature. An empirical case representing the shipbuilding industry is carried out to validate obtained findings.

A management model and factors driving performance in public organizations

PurposeThis paper seeks to analyse the characteristics of performance measurement and management systems in public organizations and to highlight the main factors driving performance in this sector.Design/methodology/approachA literature review is carried out in order to outline the main issues related to the adoption and implementation of performance measurement and management systems in public organizations.FindingsThe paper provides better information on the performance measurement and management systems in public organizations, by analyzing the performance dimensions, the use of performance measures and the factors influencing the implementation of the performance management process.Research limitations/implicationsThe paper presents a model for driving the implementation of a performance measurement system within public organizations and identifies the main factors influencing this process. The paper is conceptual in its nature and will be further developed through an empirical research investigating the role played by the identified factors.Originality/valueThe paper identifies the factors driving the performance management process in public organizations.

Municipal Performance Measurement in Practice: Which Factors Matter?

Performance measurement systems have two contrasting facets. On one hand, they assist managers to take rational actions; on the other, they disclose important information to citizens on their “value for money”. For political reasons the latter may prevail over the former, and this can undermine the validity, legitimacy and functionality of performance measurement systems for managerial action (Bouckaert 1993). Departing from the neo institutional theory, the purpose of this paper is to contribute to the understanding of the drivers that affect the use and implementation of managerially oriented performance measurement systems in municipalities, and how these drivers could affect the validity, legitimacy, and functionality of performance measurement itself. A multiple case study approach is used, with extensive document analysis and direct interviews in four municipality (two in Spain and two in Italy), that have successfully implemented performance measurement systems. Findings provide evidence to inform practitioners about the conditions under which the introduction and use of performance measurement systems in municipalities might be successful, identifying the important drivers of a successful implementation effort and help to increase municipal managers’ understanding of the factors that play a role in the successful implementation of a managerially-oriented performance measurement system in a municipal context.

A Framework for Evaluating the Effectiveness of Performance Measurement Systems

Performance measurement systems are widely used by organizations in both the public and private sectors, with the objective of improving decision making and performance. The cost associated with building and implementing these systems is high, yet many fail to deliver the expected results. This paper proposes an evaluation method and framework using an evidence-informed theory of change. The proposed theory of change can be used to guide the evaluation of the effectiveness of implemented performance measurement systems or to inform the design of new systems.

Modelling the barriers of Supply Chain Performance Measurement System implementation in the Indian automobile supply chain

This paper determines the key barriers of Supply Chain Performance Measurement System (SCPMS) implementation, which the top management should focus so as to improve the effectiveness and efficiency of Supply Chain (SC). To analyse the interaction among the key barriers, Interpretive Structural Modelling (ISM) based approach has been employed. ISM aims at understanding the mutual influences so that those barriers which are at the root of few more barriers (called driving barriers) and those which are most influenced by the others (called dependent barriers) are identified. A key finding of this modelling is that lack of awareness about Performance Measurement System (PMS) in SC is a very significant barrier. Finally, the implications for managers and policymakers are discussed.

The intricate implementation of performance measurement systems: exploring developments in professional-service organizations in the Dutch non-profit sector

Institutional and organizational theory supports the argument that current features of performance measurement systems (PMS) in public organizations are generally unsuitable for the actual nature of these professional organizations. Longitudinal and cross-sectional studies in the health care and higher education sectors in the Netherlands have shown that, despite external pressures, the implementation of such systems is slower than intended and seems to occur outside the primary process of the organization. Two rounds of interviews with quality coordinators in 2003 and 2006 showed that the gap between performance measurement systems and the operational process continued to exist, although its nature had changed. In general, quality coordinators responded pragmatically to the changes imposed upon them, as peer review and collegial trust played a vital part. The empirical findings illustrate that institutional and professional theories supplement each other in a fruitful way. Points for practitioners Policy-makers in the public sector involved with quality care and assurance should be aware that a well-structured performance measurement system (PMS) is no guarantee of smooth implementation. On the contrary, the implementation deserves attention in its own right. The more sophisticated and demanding the design of PMS, the more likely it is that employees find ways to work round such a system and only use it in a superficial or compliant manner. If implementation is not taken seriously into account, this will only lead to a greater gap between reality and rhetoric.

Analysis of interactions among the variables of supply chain performance measurement system implementation

PurposeThe purpose of this paper is to determine the key supply chain performance measurement system (SCPMS) implementation variables, on which the top management should focus, so as to improve the effectiveness and efficiency of supply chain (SC).Design/methodology/approachIn this paper, an interpretive structural modeling (ISM)‐based approach has been employed to model the SCPMS implementation variables. These variables have been categorized under “enablers” and “results.” The enablers are the variables that help boost the SCPMS implementation variables, while results variables are the outcome of good SCPMS implementation.FindingsThe paper highlights the variables associated with implementation of SCPMS. A key finding of this modeling is that awareness about performance measurement system (PMS) in SC is a very significant enabler. For better results, top management should focus on improving the high‐driving power enablers such as awareness of PMS in SC, commitment by the top management, consistency with strategic goals, funding for PMS implementation, and effective information systems.Originality/valueIn this paper, an interpretation of SCPMS implementation variables in terms of their driving and dependence powers has been carried out. Those variables possessing higher driving power in the ISM need to be taken care of on a priority basis because there are a few other dependent variables being affected by them.

Performance measurement in SMEs: literature review and results from a German case study

A literature review of Performance Measurement Systems (PMS) in Small- and Medium-sized Enterprises (SMEs) shows that the main contributions focus on the development of theoretical models, but not on guidelines for practical implementation. In this context, an important neglected aspect is the general fitness or readiness of a SME to implement a PMS. Therefore, the aim of this paper is to determine critical prerequisites for a successful PMS implementation in SMEs. For this purpose, a case study in a German SME was conducted. The findings indicate that the existence of specific contingency factors – Corporate Strategy, software-based Enterprise Resource Planning (ERP) and Activity Based Costing (ABC) – strongly supports the successful implementation of a PMS and its later use. Hence, further research shall include these prerequisites as new variables determining the PMS process. Based on that, researchers and managers of SMEs can develop individual indicators to identify their own PMS readiness.

Measuring Performance in New Product Development Projects: A Case Study in the Aerospace Industry

Implementing a performance measurement system (PMS) for research and development (R&D) is fundamental for supporting decision making and motivating researchers and engineers; however, this is a very challenging task, because effort levels are not measurable and success highly uncertain. Even if the subject has largely been debated in academic and practitioners literature so far, an acknowledged managerial approach is not available yet. This paper investigates the implementation and use of a PMS in new product development (NPD) projects, which represents a relatively unexplored issue in the R&D performance measurement debate. In particular, studying the case of a military aircraft development project, it provides a reference framework that integrates the major literature contributions’ findings and suggests a practical approach for the design and implementation of an effective PMS for NPD.

Measuring performance in the public sector: challenges and trends

PurposeThe purpose of this paper is to show that in the last decades the globalization of economies together with the adoption of the new public management model have involved deep changes in the organization and management of public service organisations (PSOs). The need to increase their accountability and customer focus orientation has driven the implementation of performance measurement systems (PMSs) in order to improve efficiency and performance. Most of the PMSs are adopted from the private sector. However PSOs present specific issues that need to be addressed. In this paper some of the main challenges and trends are introduced as well as three papers focused on the relevance and challenges related to the implementation of PMSs.Design/methodology/approachThis paper is mainly based on the results of a literature review as well as on the personal experience of the authors in the field. Its scope is to identify some fundamental research and practical practitioner issues to be investigated in order to improve the understanding and practice of the design and implementation of PMSs in public organisations.FindingsThe paper identifies the main issues related to performance measurement in the public sector.Originality/valueThis paper benefits both researchers interested to map the most important research area in the field of performance measurement in the public sector, and practitioners concerned with the obstacles to be overcome for an effective and efficient implementation of PMSs.

Towards a contingency approach to performance measurement: an empirical study in Scottish SMEs

PurposeThe literature emphasizes the important role performance measurement systems (PMS) play in supporting organizational development in small and medium enterprises (SMEs). However, there are very few empirical and theoretical studies on the factors that influence performance measurement practices in SMEs. This paper aims to contribute to filling this gap using both theoretical and empirical approaches.Design/methodology/approachA literature review and interviews were used to identify four key contingency factors for PMS in SMEs. A qualitative research design involving a multiple case study methodology was carried out to investigate how these factors influence performance measurement.FindingsThe relationship between the contingency factors and performance measurement were formalized in four theoretical propositions. First corporate governance structure is one of the main factors influencing performance measurement adoption and use. Second, advanced information practices and advanced behaviours on the part of the people involved appear to be a necessary condition for the effective implementation and use of PMS in SMEs. Third, a change in a firm's business model seems to lead to the development of an improved PMS. Finally, the successful implementation of a PMS seems to be driven by an authoritative management style.Research limitations/implicationsContingency factors were studied independently. Future research might investigate how these factors collectively influence performance measurement practices to make interdependence more explicit.Practical implicationsThe theoretical propositions provide useful knowledge for defining a methodology and managerial tool to support performance measurement in SMEs.Originality/valueThis paper defines key contingency factors influencing performance measurement in SMEs; it contributes to clarifying how these factors could influence performance measurement practices in companies.