Umit Bititci

Integrated performance measurement systems: a development guide

The performance management process is seen as a closed loop control system which deploys policy and strategy, and obtains feedback from various levels in order to manage the performance of the business. The performance measurement system is the information system which is at the heart of the performance management process and it is of critical importance to the effective and efficient functioning of the performance management system. Research identifies two critical elements with respect to the content and structure of the performance measurement system. These are: integrity and deployment. The viable systems model (VSM) provides a framework for assessing the integrity of the performance measurement system. The reference model developed for integrated performance measurement systems provides a framework against which performance measurement systems can be designed and audited.

State of the art literature review on performance measurement

The performance measurement revolution started in the late 1970s with the dissatisfaction of traditional backward looking accounting systems. Since then the literature in this field is emerging. Most of the focus was on designing performance measurement system (PMS), with few studies illustrating the issues in implementing and using PMS. Although Management Information Systems (MIS) and change management are important enablers of PMS, their role is not very well understood. Hence the objective of this paper is to review literature on the role of MIS and change management throughout the lifecycle of performance measurement, i.e. design, implementation and use stages. This paper not only discusses the role of MIS and change management throughout PMS lifecycle but also discusses PMS in the context of emerging business environment such as globalization, servitization, and networking in the context of multi-cultural environment. Finally it identifies research challenges for PMS in the emerging business environment.

Quantitative models for performance measurement system

This paper describes works at the Centre for Strategic Manufacturing, University of Strathclyde on developing Quantitative Models for Performance Measurement Systems (QMPMS) using cognitive maps, cause and effect diagrams, tree diagrams, and the analytic hierarchy process. It describes how the technique can be used to identify factors affecting performance and their relationships, structure them hierarchically, quantify the effect of the factors on performance, and express them quantitatively. A simple example is used throughout the paper to explain how the concept of the model works. An application of the method to model `total production cost per unit’ of a collaborator company is presented. Then taxonomy of performance measurement is outlined. The taxonomy, which is developed based on the QMPMS, can be used to prioritise performance measurement.

Performance Measurement: Challenges for Tomorrow

This paper demonstrates that the context within which performance measurement is used is changing. The key questions posed are: Is performance measurement ready for the emerging context? What are the gaps in our knowledge? and Which lines of enquiry do we need to pursue? A literature synthesis conducted by a team of multidisciplinary researchers charts the evolution of the performance-measurement literature and identifies that the literature largely follows the emerging business and global trends. The ensuing discussion introduces the currently emerging and predicted future trends and explores how current knowledge on performance measurement may deal with the emerging context. This results in identification of specific challenges for performance measurement within a holistic systems-based framework. The principle limitation of the paper is that it covers a broad literature base without in-depth analysis of a particular aspect of performance measurement. However, this weakness is also the strength of the paper. What is perhaps most significant is that there is a need for rethinking how we research the field of performance measurement by taking a holistic systems-based approach, recognizing the integrated and concurrent nature of challenges that the practitioners, and consequently the field, face.

Creating and managing value in collaborative networks

This is a theoretical paper that examines the interplay between individual and collective capabilities and competencies and value transactions in collaborative environments. The theory behind value creation is examined and two types of value are identified, internal value (Shareholder value) and external value (Value proposition). The literature on collaborative enterprises/network is also examined with particular emphasis on supply chains, extended/virtual enterprises and clusters as representatives of different forms and maturities of collaboration. The interplay of value transactions and competencies and capabilities are examined and discussed in detail. Finally, a model is presented which consists of value transactions and a table which compares the characteristics of different types of collaborative enterprises/networks. It is proposed that this model presents a platform for further research to develop an in-depth understanding into how value may be created and managed in collaborative enterprises/networks.

Dynamics of performance measurement and organizational culture

Purpose – This research paper aims to model the dynamic relationship between performance measurement, management styles and organisational culture, in order to develop a better understanding of the causal linkages between these three areas.Design/methodology/approach – The related literature on performance measurement, management control systems and management information systems, in the context of organisational culture, is examined and a framework for mapping the interplay of the three areas is developed. The research is based around five case studies where performance measurement systems were implemented in action research programmes, using identical implementation methods, by the same research team. The use of the performance measurement systems was then observed over a period of time in relation to the implementation lifecycle, changes to management style and organisational structure over time. The dynamic relationships were then mapped using the framework developed. Patterns were observed, which led...

Measuring and managing performance in extended enterprises

Purpose - The purpose of this research paper is to demonstrate how existing performance measurement may be adopted to measure and manage performance in extended enterprises. Design/methodology/approach - The paper reviews the literature in performance measurement and extended enterprises. It explains the collaborative architecture of an extended enterprise and demonstrates this architecture through a case study. A model for measuring and managing performance in extended enterprises is developed using the case study. Findings - The research found that due to structural differences between traditional and extended enterprises, the systems required to measure and manage the performance of extended enterprises, whilst being based upon existing performance measurement frameworks, would be structurally and operationally different. Based on this, a model for measuring and managing performance in extended enterprises is proposed which includes intrinsic and extrinsic inter-enterprise coordinating measures. Research limitations/implications - There are two limitations this research. First, the evidence is based on a single case, thus further cases should be studied to establish the generalisibility of the presented results. Second, the practical limitations of the EE performance measurement model should be established through longitudinal action research. Practical implications - In practice the model proposed requires collaborating organisations to be more open and share critical performance information with one another. This will require change in practices and attitudes. Originality/value - The main contribution this paper makes is that it highlights the structural differences between traditional and collaborative enterprises and specifies performance measurement and management requirements of these collaborative organisations.

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

Purpose – The 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/approach – A 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.Findings – The 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...

Strategy management through quantitative modelling of performance measurement systems

This paper is based on previous works on performance measurement and on quantification of relationships between factors which affect performance. It demonstrates how tools and techniques developed can be used to evaluate the performance of alternative strategic choices through a quantitative approach to modelling of performance measurement systems. The paper provides a brief background to the research problem and preceding works. The tools and techniques used are briefly introduced. Use of these tools and techniques to evaluate the performance of alternative manufacturing strategies is demonstrated. Finally, the capability of the approach to deal with dynamic environments is demonstrated using sensitivity analysis.

Modelling of performance measurement systems in manufacturing enterprises

In this paper the analysis, modelling and design of performance measurement systems is demonstrated through a case study example. The paper starts off with reviewing the current developments in the area of performance measurement. It then goes on to specify a set of requirements which future research on performance systems should address. The remainder of the paper summarises an attempt to modelling performance measurement systems using three views in a similar manner to that of information systems modelling techniques commonly used today.