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Explaining the evolution of performance measures – A dual case-study approach
Mälardalen University, School of Innovation, Design and Engineering. (Produktrealisering)
2013 (English)In: Journal of Engineering, Project, and Production Management, ISSN 2221-6529, E-ISSN 2223-8379Article in journal (Other academic) Published
Abstract [en]

Few empirical studies have examined how performance measures change in practice and the driving forces behind this change. The existing body of literature has taken a prescriptive approach to how managers and organisations ought to manage change in performance measures without any concern for studying the phenomenon itself and thus a theoretical gap exists. With this gap in mind, the purpose of this paper is to outline how and why the performance measures have changed at two case companies over the time period 2008-2011. In order to fulfil the purpose of this paper two case studies at two different case companies have been conducted. The choice of data collection method is justified by the ambition to attain an in-depth and holistic understanding of the phenomenon. For each case, the data collection was based on four components: an interview study, analysis of archived data, documentation and direct observations. In total, 28 interviews were conducted, 14 at each case company. The empirical findings exhibit that the performance measures are exposed to continuous and considerable change from several perspectives. The measurement scopes at both case companies are steadily expanding, the individual performance measures are constantly replaced and their characteristics are continuously altered. An array of change triggers has been identified in the empirical findings. In contrast to what is advocated in literature, the findings illustrate that the most frequent reason for change is the will to improve the performance measures, the measurement process and the overall performance rather than changing internal and external environments. There are several challenges that need to be addressed in the future research agenda.

Place, publisher, year, edition, pages
2013.
Keyword [en]
performance measures
National Category
Engineering and Technology
Research subject
Innovation and Design
Identifiers
URN: urn:nbn:se:mdh:diva-18688OAI: oai:DiVA.org:mdh-18688DiVA: diva2:613493
Projects
xpres
Funder
XPRES - Initiative for excellence in production research
Available from: 2013-03-28 Created: 2013-03-28 Last updated: 2013-12-05Bibliographically approved
In thesis
1. Managing change in performance measures within a manufacturing context
Open this publication in new window or tab >>Managing change in performance measures within a manufacturing context
2013 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Even though the literature available within the field of performance measurement and management (PMM) is extensive, a gap exists regarding how change is managed in performance measures (PM).  This gap is corroborated by the empirical data underlining that only a few organisations have mechanisms in place for managing PM change. The need to manage change in PM arises from the consensus that performance measurement systems (PMS) should reflect the strategy and direct environments of the company. As both strategies and environments are dynamic in nature the PMS ought to possess the capability to change. The paradox of combining dynamic strategies and environments with static PMS has created problems for companies as the competitive conditions change over time. With this background in mind, the purpose of this thesis is to contribute to the existing body of knowledge regarding how to manage change in performance measures. The contribution from this research will stem from analysis of six empirical studies and the results will be concluded in a set of guidelines regarding how to manage change in PM in practice.

This thesis has adopted a systems perspective and takes a qualitative, case-study based approach. In total six case studies and three literature studies have been conducted. The case studies have been conducted on three different continents and have focused on the deployed ways for managing change in PM and how the PM have evolved over time. The first literature study focused on the general literature within the field of PMM, the second literature study focused on the literature revolving around keeping PM updated and relevant over time whilst the third and concluding literature study focused on further expanding the theoretical base on how to manage change in PM and how PM evolve and change after their implementation. This thesis concludes that extensive PM change is necessary over time in order to establish and maintain appropriate PM, continuously improve the measurement process and boost performance. Further, in converse to the various approaches suggested in literature, all six approaches identified in the case studies are processes. Furthermore, each PM change process differs from another as highlighted in the empirical findings chapter.

Finally, 11 factors have been identified from the theoretical and empirical findings that affect the ability to manage change in PM: level of process documentation, process ownership, employee involvement and alignment (as an embedded part of the PM change process design), communication, culture, role of top-management, IT-infrastructure capabilities, resources available for facilitation, PM ownership and education. Finally, eight guidelines have been developed addressing how to manage change in performance measures.

Place, publisher, year, edition, pages
Västerås: Mälardalen University, 2013
Series
Mälardalen University Press Dissertations, ISSN 1651-4238 ; 141
Keyword
performance measures
National Category
Engineering and Technology
Research subject
Innovation and Design
Identifiers
urn:nbn:se:mdh:diva-18691 (URN)978-91-7485-107-6 (ISBN)
Public defence
2013-06-14, Filen, Smedjegatan 37, Eskilstuna, 10:00 (English)
Opponent
Supervisors
Funder
XPRES - Initiative for excellence in production research
Available from: 2013-04-29 Created: 2013-03-28 Last updated: 2013-12-06Bibliographically approved

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