Hannu Rantanen

Performance measurement systems in the Finnish public sector

Purpose – This paper aims to identify the specific problems faced by the Finnish public sector organizations in designing and implementing performance measurement systems (PMS).Design/methodology/approach – An understanding of the problems is obtained by examining three case organizations in practice. In order to support the analysis of the empirical findings, a review of prior literature on the private and public sector PMSs is carried out.Findings – The design and implementation processes in the Finnish public sector organizations differ significantly from the way they are realized in industrial private sector companies. The four underlying reasons for problems in public sector organizations are the following: there are many stakeholders with conflicting needs; the end products and goals are undefined; there is a lack of property ownership and lacking management skills.Practical implications – By utilizing the results of the study, PMS design and implementation in the public sector can be carried out by...

Small manufacturing and service enterprises as innovators: a comparison by size

Purpose – This paper aims to focus on innovation development in enterprises with fewer than 50 employees. It explores differences in innovation capacity and in the diversity of developed innovations across the four enterprise size categories within the small manufacturing and service enterprises.Design/methodology/approach – The empirical evidence is based on quantitative data gathered through an e‐mail questionnaire, which yielded 708 responses from the representatives of Finnish small enterprises. The analysis is based on non‐parametric tests.Findings – The findings display a broad diversity of innovation patterns among small enterprises. The evidence identifies differences and similarities in innovation capacity and innovation development across the different size categories within the manufacturing and service sectors. Finally, a summary of the characteristics of small enterprises as innovators across size categories is provided.Research limitations/implications – This paper studies innovation pattern...

The impacts of performance measurement on the quality of working life

The design, implementation and use of Performance Measurement (PM) systems have been studied extensively. However, the literature shows little evidence on what kind of impacts PM practises have had on, for example, the performance of the operative level of an organisation. This paper focuses on the impacts PM has had on the Quality of the Working Life (QWL) of employees, for example, their work motivation, learning opportunities, job satisfaction, participation in decision making and reward system. Furthermore, this paper presents how the perceptions of management and employees differ from each other and what the key elements in the implementation process are as regards the accomplishment of positive impacts of PM on the quality of working life. This paper concludes with the underlying factors behind the positive impacts of PM on the quality of working life.

Innovation Capability and Its Measurement in Finnish SMEs

The importance of the development of an organisation’s innovation capability for its success is highlighted in current literature. This study provides a comprehensive description of the status quo of Finnish SMEs regarding the different dimensions of innovation capability, expertise, work wellbeing, and the measurement of issues related to innovation capability. The study also clarifies whether the results of the studied issues differ depending on the size of the organisation, the industry and the organisational position. The most important insight of the study is that the perceptions of executives and employees differ significantly with regard to all the studied aspects. The study suggests that both academics and practitioners should focus on the development of new methods and practices for enhancing innovation capability, and especially the measurement of issues related to it.

How to communicate measurement information successfully in small and medium-sized enterprises: a regression model

The role of internal communication has been highlighted in the earlier literature on Performance Measurement (PM). This paper focuses on the predictors that explain the success of the communication of measurement information in Small and Medium-sized Enterprises (SME) operating in the manufacturing industry. The study is based on a survey carried out in eight companies. The results indicate that the quality of information and face-to-face communication are the main predictors of the success of measurement information communication in SMEs. The study suggests that SMEs should invest in the quality aspects of measurement information, in its exactness, reliability, intelligibility and usefulness.

Internal obstacles restraining productivity improvement in small Finnish industrial enterprises

Abstract There was a deep depression in the early 1990s in Finland, during which the number of jobs in Finnish industry decreased. By improving productivity, we can increase the price competitiveness of Finnish products and create the necessary conditions for increasing our standard of living. Although productivity improvement is important, it does not always succeed. A firm may have a real intention to improve productivity, but there are many things which restrain their ability to achieve this aim. The factors which make the efforts to improve productivity ineffective, or even prevent improvement operations can be called obstacles to productivity improvement. These obstacles can be classified into three categories: internal, external and general obstacles. In this paper an attempt is made to analyze the internal obstacles. The main reason for this kind of treatment is the fact that internal obstacles form the only category of obstacles which is clearly under the control of the firm. Thus, by identifying and eliminating these obstacles we can improve the actions of the whole firm. In the present paper, the possible obstacles, especially internal obstacles are discussed and classified on the basis of the theory. A study is presented which aims to establish the most significant internal obstacles for productivity improvement in small industrial firms on the basis of two different sets of regional data.

Performance measurement implementation in a knowledge-based public organisation

Numerous papers on measurement systems in public organisations have appeared in the recent years. Measurement systems in knowledge-based organisations is another popular topic in the literature. The development and implementation of management systems in knowledge-based public organisations differs considerably from the way they are realised in the production-oriented sector. This case study examines the implementation of a Performance Measurement System (PMS) in a knowledge-based public organisation. The study comprises of information that emerged during the PMS development in this organisation. The aim is to pinpoint those success factors especially critical from the point of view of the implementation of performance measurement.

A framework to support performance measurement at the operative level of an organisation

The study focuses on performance measurement at the operative level of an organisation. Factors that improve and facilitate the performance of the operations and employees, and the use of performance measurement are examined. A framework to support performance measurement at the operative level of an organisation has been constructed. The empirical evidence of the study is based on interviews in eight organisations. The findings suggest that there are six factors that have a direct and positive influence on operative level performance measurement. The three most important factors are the linkage of performance measurement to reward, interactive communication, and understanding the linkage between an individuals and the organisations targets.

Performance measurement system implementation in a turbulent operating environment

Purpose The purpose of this paper is to examine how a performance measurement system (PMS) can be designed for small- and medium-sized enterprises (SMEs) operating in a turbulent environment. The current models and frameworks for the design and implementation of a PMS are for large companies; these traditional design and implementation processes are too multi-stage and long term for SMEs operating in a rapidly changing environment. Design/methodology/approach The study constructs a conceptual framework based on the performance measurement and management literature and empirical evidence from a longitudinal case study. Interviews, an analysis of strategic documents and documentation of the prevailing measurement system were conducted. Findings The study results reveal the framework for a flexible PMS design. In the framework, the PMS consists of core permanent measures that control the profitability of the company and supportive measures of the realisation of strategic targets. The supportive measures change and develop along with the strategy. Originality/value The study provides new understanding about the performance measurement design process in SMEs operating in a turbulent environment. The existing literature presents performance measurement design and implementation process models for large organisations, but these frameworks are too multi-stage and long term for SMEs.

Productising expert services of performance management

The paper focuses on the packaging and productising of expert services of a performance management tool. The empirical part of the study utilises a productising process selected from current literature. The productisation process of a survey tool, conducted for the evaluation of factors behind successful operative level performance measurement, has been selected as a case of productising expert services of performance management. The constructive research method is used. The study provides guidelines that should be taken into account when productising expert services of performance management.