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It is generally accepted by academics and practitioners alike that production performancemeasures ought to be derived from the strategy of a company. However, unlike the context that measurement systems operate in, they appear to be static. Hence, companies often fail to continuously reflect the dynamic business environment and their new priorities in their performance measurement systems. In the rapidly changing environment of today the development, implementation and use of adequate performance measurement frameworks are some of the major challenges confronting organisations and are also significant success factors. The purpose of this paper is to present key contributing factors in creating dynamic abilities in a production performance measurement system. The factors are derived by a literature study, a case and by contrasting the case to the literature. The case presented is a participatory study that stretches over 10 months and follows a project leader with the task of re-designing and implementing a support structure for a production performance measurement system. Following the introduction, the paper is divided into three sections: the literature review, the case study presentation and finally a discussion regarding what factors amplify and inhibit the dynamics in the support structure of a performance measurement system. The conclusion derived is that four additional factors have emerged as enablers for a dynamic

Performance measurement systems are challenged by today’s rapidly changing and highly competitive markets. Measures and management of these systems often fail to continuously reflect the dynamic business environment. This purpose of this paper is to discuss how to achieve a dynamic and flexible performance measurement system applicable for manufacturing sites. The analysis is based on a literature review on major performance measurement schemes, as well as a problem identified in industry. The paper introduces an industrial case where the current measurement at Operations is briefly evaluated and put in relation to the findings made in the literature study. The industrial challenges and possibilities are set as one basis for a proposed future structure. Important aspects on unctionalities/abilities for future research as well as development at the case company when choosing indicators and their implementation are discussed.

This paper analyse the key factors for creating a dynamic ability in the performance measurement system, in order to manage the operations/strategy interface. A case study was conducted at a heavy vehicle manufacturing site with three data collection components: analysis of archival data, direct observations and an interview study. The study details five factors that need to be fulfilled in order to realise dynamic abilities in a PMS: review process, IT system, management, culture and employee involvement. Moreover, in order to realise the factors in practice the PMS design and context need to be considered.

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.