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Aligning Dynamic Performance Measures
Mälardalen University, School of Innovation, Design and Engineering.
Mälardalen University, School of Innovation, Design and Engineering.ORCID iD: 0000-0001-7935-8811
Mälardalen University, School of Innovation, Design and Engineering.ORCID iD: 0000-0002-0729-0122
Mälardalen University, School of Innovation, Design and Engineering.
2010 (English)In: PROCEEDINGS OF THE 6TH EUROPEAN CONFERENCE ON MANAGEMENT LEADERSHIP AND GOVERNANCE, Wroclaw, Poland, 2010, p. 339-349Conference paper, Published paper (Refereed)
Abstract [en]

Few existing performance measurement systems emphasis the need for a performance management process, instead management is perceived as a once-off initial occurrence. Therefore performance measures and management of these measurement systems often fail to continuously reflect the current dynamic business environment. This creates a paradox with organisations using performance metrics that are obsolete or redundant due to the unfamiliarity of changing them. Few researchers have tried to answer the question how performance measures evolve and act in their milieus after the implementation phase. The need for a dynamic approach to performance measurement is not widely addressed and viable processes which can be used by management teams in a consistent manner are inquired. Corporations need tools to integrate and update performance measurement systems rationally and systematically as context and opportunities change. Without a nurturing infrastructure a performance measurement system can not stay viable. Without a process keeping the performance measurement system viable measuring becomes valueless and even destructive. As it is generally accepted both in academia and practice that business strategy is dynamic and ever changing in nature a consensus is growing that performance measurement systems must be accounted for when direction changes. The purpose of this paper is twofold, firstly to primary single out and present theoretically crucial characteristics for dynamic and flexible performance measurement systems. Secondly, to investigate to what extent the theoretical parameters are applied in practice. The article is divided into three parts; firstly, the literature within the field of performance measurement systems is filtrated to identify theoretically crucial factors for a dynamic performance measurement system. Secondly, the theoretical factors are observed in practice through two case studies and a cross-case analysis. Finally, the article is rounded up with a discussion over why organisations should focus on alignment of measures and objectives as a first step in their pursuit of dynamic measurement systems.

Place, publisher, year, edition, pages
Wroclaw, Poland, 2010. p. 339-349
National Category
Production Engineering, Human Work Science and Ergonomics
Research subject
Innovation and Design
Identifiers
URN: urn:nbn:se:mdh:diva-10898ISI: 000290938700041ISBN: 978-1-906638-81-8 (print)OAI: oai:DiVA.org:mdh-10898DiVA, id: diva2:369237
Conference
Conference: 6th European Conference on Management, Leadership and Governance Location: Coll Management Edukacga, Wroclaw, POLAND Date: OCT 28-29, 2010
Projects
XPRESPROLOC
Funder
XPRES - Initiative for excellence in production researchAvailable from: 2010-11-10 Created: 2010-11-10 Last updated: 2013-12-04
In thesis
1. Towards Dynamic Performance Measurement Systems: A framework for manufacturing organisations
Open this publication in new window or tab >>Towards Dynamic Performance Measurement Systems: A framework for manufacturing organisations
2011 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

Consensus prevails that performance measurement systems should reflect the strategic direction of a company. Strategies are dynamic in nature while existing measurement systems are stable and predictable. The paradox of combining strategies with measurement systems has created problems for companies as the strategic context alters. Even though the literature surrounding the field is vast and dense there is a gap regarding how to keep measurement system up to date and dynamic.

With the existing problem in mind, the objective of this research is to develop a framework that will support the realisation of dynamic performance measurement systems in manufacturing organisations.

The research in this thesis has adopted a systems approach and is built around four case studies and two literature studies. The case studies have been conducted at manufacturing organisations on three different continents. The first literature study focused on the general literature in the field whilst the second literature study focused on the characteristics of dynamic performance measurement system in particular.

The end-result of this research is a framework based on 19 factors systemised under five sub-headings: review process, IT system, management, employees and culture. In excess of the 19 factors, an additional two factors focalising on the realisation of the framework in practice finalises the end-result.

As the research is derived from an industrial problem, this thesis provides an insight for academics of the contemporary struggles of manufacturing organisations with their performance measurement systems. Moreover, this framework provides practitioners with a foundation for making their performance measurement systems compatible and suitable for ever-changing content.

Place, publisher, year, edition, pages
Västerås: Mälardalen University, 2011
Series
Mälardalen University Press Licentiate Theses, ISSN 1651-9256 ; 140
Identifiers
urn:nbn:se:mdh:diva-12312 (URN)978-91-7485-022-2 (ISBN)
Presentation
2011-06-16, Selanderrummet, verktyget, IDT., Bruksgatan, skilstuna, 10:00 (Swedish)
Opponent
Supervisors
Available from: 2011-05-25 Created: 2011-05-25 Last updated: 2011-06-17Bibliographically approved

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Wiktorsson, MagnusBengtsson, Marcus

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