Performance measurement and strategic change

Performance measurement systems not only provide the data necessary for managers to control business activity, they also influence the behavior and decisions of managers. This being the case, a restrictive set of financial performance measures may adversely impact on an organization's long-term...

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Bibliographic Details
Published in:Managing service quality 1998-06, Vol.8 (3), p.178-182
Main Authors: O'Mara, Charles E., Hyland, Paul W., Chapman, Ross L.
Format: Article
Language:English
Subjects:
Business metrics
Case studies
Executives
Financial performance
ISO standards
Management
Manufacturing
Measurement
Objectives
Organizational change
Performance evaluation
Product development
Software
Strategic planning
Strategy
Studies
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Summary:Performance measurement systems not only provide the data necessary for managers to control business activity, they also influence the behavior and decisions of managers. This being the case, a restrictive set of financial performance measures may adversely impact on an organization's long-term viability, so organizations should develop a broad range of performance measures. Berliner and Brimson state that "performance measurement is a key factor in ensuring the successful implementation of a company's strategy". Thus when organizations implement new strategies they should ensure that the appropriate set of performance measures are in place. In this paper we look at two case studies conducted in a medium-sized manufacturing firm and a large manufacturing firm, and evaluate the managers' perceptions of the strategy performance measurement relationship, and the responsiveness of performance measures to changes in strategy.
ISSN:0960-4529
2055-6225
1758-8030
2055-6233
DOI:10.1108/09604529810215657