Raili Pollanen

Budgetary criteria in performance evaluation: a critical appraisal using new evidence

Abstract Previous studies on the use of budgetary criteria in performance evaluation have used a wide range of variables, measures and models, but have concentrated upon extending rather than repeating previous work. This study includes replications of parts of five previous studies and obtains results that differ in many respects from previous findings. Because of the use of similar measures and models, it can be concluded that the different results stem primarily from the different sample of managers studied. More generally, it is suggested that control practices differ across organizations, cultures and time; universal findings should not be expected. Rather, a more coherent programme of work is required to explicate the varied ways in which budgetary techniques can be used in performance evaluation and management. ©

Performance measurement in municipalities: Empirical evidence in Canadian context

Purpose – This paper examines the actual and desired use of performance measures for management and external reporting purposes, as well as perceived impediments to their effective use.Design/methodology/approach – A total of 334 senior administrators in Canadian municipalities participated in this survey study.Findings – Somewhat more efficiency measures than effectiveness measures have been used for various purposes. However, greater use was perceived desirable than actually occurred, particularly for effectiveness measures. A significant increase in the use was expected in the near future especially for effectiveness measures. Internal and external verification of measures was considered important by both internal and external auditors. Although the study also identified impediments to the development and meaningful use of performance measures, performance measurement appears to have been accepted as a useful managerial tool and have significant future potential.Research limitations/implications – The ...

Strategic planning and implementation success in public service organizations: evidence from Canada

Abstract In this article, we examine the role that formal strategic planning plays in determining the success of strategy implementation in a set of more than 150 public service organizations from Canada. We also analyse the mediating effects of managerial involvement in strategic planning and the moderating effects of stakeholder uncertainty on the planning-implementation relationship. A structured online questionnaire was used to collect the data. Our findings suggest that formal strategic planning has a strong positive relationship with implementation, which, though mediated by managerial involvement, becomes even more salient in the face of stakeholder uncertainty. Several implications of these findings are discussed.

Challenges in enhancing enterprise resource planning systems for compliance with Sarbanes‐Oxley Act and analogous Canadian legislation

Purpose – This paper aims to examine major challenges faced by companies in enhancing their enterprise resource planning (ERP) systems for compliance with regulatory internal control requirements, specifically those imposed by the Sarbanes–Oxley Act (SOX) of 2002 and analogous Canadian legislation.Design/methodology/approach – Data were collected through case studies of four medium‐sized and large companies that use ERP systems and that have operations in the USA and Canada, thus being subject to SOX and/or similar Canadian regulations.Findings – The companies faced some technical, process and cultural challenges in implementing regulatory control compliance. In all companies, existing ERP systems were not able to meet all control requirements without some modifications or add‐on applications. Control implementations have been long, complicated and costly processes, which are not fully completed. Detailed analyses and documentation of existing systems, controls and processes were required in all companies...

Relationships between strategic performance measures, strategic decision-making, and organizational performance: empirical evidence from Canadian public organizations

ABSTRACT This study investigates the role of strategic performance measures (SPM) in strategic decision-making and their impact on organizational performance. Based on 143 online survey responses from senior administrators across Canadian public organizations, the study found that SPM of efficiency and effectiveness are positively associated with performance, as well as, the former with both strategy implementation and strategy assessment decisions. The study extends prior research by linking both SPM and their use in strategic decision-making to organizational performance.

The use of performance information in strategic decision making in public organizations

Purpose – The purpose of this paper is to investigate how the importance of different components of strategic performance measurement systems (SPMS) and their deployment influence the use of performance information from the SPMS in making strategic decisions. Design/methodology/approach – Data were collected through a survey of 143 managers of Canadian public organizations. Findings – The findings indicate that two SPMS components, namely, the importance of non-financial performance measures and the use of operational efficiency measures, have significant positive associations with performance information use for strategy implementation and strategy assessment decisions. The extent to which SPMS models were used is found to be positively associated with performance information use for strategy implementation, but not for strategy assessment, decisions. Furthermore, the relationships between SPMS variables and strategic decision making are moderated by information systems/data limitations and management’s ...

The Use of Balanced Scorecard Measures in Executive Incentives and Firm Performance

This study investigates the use of balanced scorecard (BSC) measures in executive compensation plans, particularly its performance consequences, and the fit between the use of BSC and firm characteristics. Using a matched-pair design of 330 firms, data from multiple public sources, and multiple measures for key variables, it reveals a strong association between BSC use and firm performance. Evidence also supports the role of strategy, industry, size, quality, structure, culture, and ownership as contingent variables affecting firm performance. Furthermore, firm performance is a function of increased fit between BSC use and firm characteristics. The findings underscore the importance of firm characteristics in the design and use of performance measurement and reward systems.

Management Accounting and Control Research in Public Organizations

The majority of academic research studies on management accounting and control (MAC) practices have traditionally been conducted in the private-sector context, and the studies that have involved the public sector have mostly ignored issues unique to public organizations. Three comprehensive literature reviews of MAC research (Ittner and Larcker 2001, Luft and Shields 2003, Chenhall 2003) barely acknowledged the public sector but recognized that it provides potential future research opportunities. A more recent MAC review (Berry et al. 2009) recognized more explicitly unique public-sector circumstances and provided examples of MAC research in the public sector. Finally, the most recent review (Goddard 2010) focused on accounting research, including MAC, specifically in the public sector. These five literature reviews demonstrate increased interest in, and progress on, MAC research in the public-sector context during the 2000s, as discussed in the literature section.