https://epublications.marquette.edu/cgi/viewcontent.cgi?article=1270&context=mgmt_fac

Qualitative case studies in operations management: Trends, research outcomes, and future research implications

Purpose – This paper provides an update of Neely et al.'s (1995) literature review “Performance measurement system design”. It was commissioned to appear in a special issue of the International Journal of Operations & Production Management to celebrate the journal's 25th anniversary.Design/methodology/approach – The paper employs a citation/co‐citation analysis of work in the field of performance measurement to explore developments in the field globally.Findings – The paper argues that scholars working in the field of performance measurement agree about the key research questions despite the fact that they come from different disciplinary backgrounds. The paper identifies the key contributors to the field based on a citation/co‐citation analysis and argues that the field is now entering a phase of empirical investigation and theoretical verification of some core concepts.Research limitations/implications – The research reported in the paper is limited to work that deals directly with performance measureme...

The evolution of performance measurement research: Developments in the last decade and a research agenda for the next

In recent years, literature has identified the increasing complexity of small and medium-sized enterprises (SMEs) and highlighted their sensitivity to differences in managerial culture and management systems. Research has shown that performance measurement systems (PMSs) could play an important role in supporting managerial development in these companies. In this paper, the literature on performance measurement in manufacturing SMEs is reviewed and the diffusion, characteristics and determinants of performance measurement in SMEs are analysed. Shortcomings in the performance measurement systems are highlighted and the many factors that seem to constrain PMSs in manufacturing SMEs are defined, e.g. lack of financial and human resources, wrong perception of the benefits of PMS implementation, short-term strategic planning. Moreover, using dimensions defined according to the information found in the literature, two PMS models specifically developed for SMEs are compared with generic PMS models. The comparison points out an evolution in PMS models over time; in particular, the models developed in the last 20 years are more horizontal, process-oriented and focus on stakeholder needs. However, it is not clear whether these changes are due to the evolution of the generic models or an attempt to introduce models suited to the needs of SMEs. To clarify this matter and better to understand PMSs in SMEs, further theoretical and empirical studies are necessary. The main issues still requiring investigation are listed in a research agenda at the end of the paper.

https://onlinelibrary.wiley.com/doi/pdf/10.1111/j.1468-2370.2005.00105.x

Performance measurement systems in SMEs: A review for a research agenda

This chapter aims to go some way towards addressing the dearth of research into performance measurement systems and metrics of supply chains by critically reviewing the contemporary literature and suggesting possible avenues for future research. The article provides a taxonomy of performance measures followed by a critical evaluation of measurement systems designed to evaluate the performance of supply chains. The chapter argues that despite considerable advances in the literature in recent years, a number of important problems have not yet received adequate attention, including: the factors influencing the successful implementation of performance measurement systems for supply chains; the forces shaping their evolution over time; and, the problem of their ongoing maintenance. The chapter provides both a taxonomy of measures and outlines specific implications for future research.

Measuring Supply Chain Performance: Current Research and Future Directions

The design and use of performance measurement systems has received considerable attention in recent years. Many organisations have redesigned their measurement systems to ensure that they reflect their current environment and strategies. However, increasingly the environment in which organisations compete is dynamic and rapidly changing, requiring constant modification of strategies and operations to reflect these changing circumstances. Despite this, few organisations appear to have systematic processes in place to ensure that their performance measurement systems continue to reflect their environment and strategies. This paper presents case study research that investigates what actions organisations can take to ensure that their measurement systems evolve over time.

Measuring performance in a changing business environment

This book takes a radically different look at performance measurement and sets out explicitly to identify how managers can use measurement data to improve business performance. The key features of the proposed book are: * Critical reviews of the major measurement frameworks available today - including the balanced scorecard, the business excellence model and shareholder value analysis. * Introduction of a new measurement framework - the performance prism - that addresses the shortcomings of the exisiting measurement frameworks. * Explanation of the tools, techniques and methodologies that can be used to measure stakeholder satisfaction, strategies, processes, capabilities and stakeholder contribution - the five facets of the performance prism. * Explanation of how managers can make the most of their measurement data. Specific discussions about how managers can analyse business performance data and identify appropriate improvement priorities. OUTLINE Chapter 1 - The Measurement Crisis This chapter will explore why measurement is on management's agenda and review recent developments in the field. A key theme in the chapter will be the changing nature of the measurement crisis. In the 1980s, when people first started worrying about the effectiveness of their measurement systems, the problem was that we were measuring the wrong things. Today the problem is that we are measuring too much. The chapter will explore this theme and encourage management to take a step back and think clearly about what they want from their measurement systems. Chapter 2 - The Measurement Frameworks This chapter will review the major measurement frameworks that are available today and identify their strengths and weaknesses. Frameworks to be covered will include the balanced scorecard, the business excellence model, shareholder value. A key theme that will run throughout the chapter will be the fact that each of these measurement frameworks offers a partial view of business performance. Chapter 3 - The Performance Prism This chapter will introduce a new, comprehensive measurement framework - the performance prism. The prism looks at measurement from a stakeholder perspective. When deciding what to measure managers have to first identify who their stakeholders are and what they want and need. Only then can they begin to decide what they should measure. Many of the existing works on measurement fail to recognise this, with numerous authors suggesting that measures should be derived from strategy. Measures should be consistent with strategy, but they should not be derived from strategy. Organisations have strategies because they want to deliver value to stakeholders. Hence the starting point for any discussion of measurement has to be stakeholders. The chapter on the performance prism will build upon this theme and explain how the performance prism provides a structure that encourages managers to answer five inter-related questions when designing their measurement systems: * Stakeholder satisfaction - who are the stakeholders and what do they want and need? * Strategies - what strategies do we need to deliver value to stakeholders? * Processes - what processes do we require to deliver these strategies? * Capabilities - what capabilities do we require to execute these processes? * Stakeholder contribution - what do we want and need from our stakeholders to enable all of the above to happen? Chapter 4 - Measuring Stakeholder Satisfaction This chapter will explore developments in the measurement of stakeholder satisfaction - investors, customers, employees, suppliers, regulators and local communities. Chapter 5 - Measuring Strategies This chapter will explore developments in the measurement of strategy - especially execution and effectiveness. Chapter 6 - Measuring Processes This chapter will explore developments in the measurement of processes - especially those associated with generating demand, fulfilling demand, developing new products and services and planning and managing the enterprise. Chapter 7 - Measuring Capabilities This chapter will explore developments in the measurement of capabilities - combinations of technology, people, practices and infrastructure. Chapter 8 - Measuring Stakeholder Contribution This chapter will explore developments in the measurement of stakeholder contribution - investment levels, customer and employee loyalty, supplier performance. Chapter 9 - Analysing Performance Data This chapter will build on the previous chapters by illustrating how performance data can be analysed once the data has been captured. Various tools, techniques and methodologies will be discussed and explained. There will be a strong emphasis throughout the chapter on the practicalities of making the most of measurement data. Chapter 10 - Improving Business Performance This chapter will concentrate on how to drive improvements in business performance following a systematic analysis of the data. Practical examples will be offered throughout that will illustrate how particular firms have used their measurement data. Appendix - The Measures Catalogue The authors have been working together over a period of months to construct a catalogue of best practice performance measures that identifies specific measures of performance that organisations can use to monitor their progress. The catalogue is structured around the performance prism framework and is currently available on the web (www.cranfield.ac.uk/som/cbp). While it would be impossible to include a paper copy of the catalogue as an appendix, it might be possible to offer it on a CD as further value added feature of the book.

The Performance Prism: The Scorecard for Measuring and Managing Business Success

Describes the development and testing of a structured methodology for the design of performance measurement systems. Frameworks, such as the balanced scorecard and the performance prism, have been proposed, but until recently little attention has been devoted to the question of how these frameworks can be populated, i.e. how managers can decide specifically which measures to adopt. Following a wide ranging review of the performance measurement literature, a framework identifying the desirable characteristics of a performance measurement system design process is developed. This framework provided guidelines which were subsequently used to inform the development of a process‐based approach to performance measurement system design. The process was enhanced and refined during application in three action research projects, involving major UK automotive and aerospace companies. The revised process was then formally documented and tested through six further industrial applications. Finally the process was written up in the form of a workbook and made publicly available.

Performance measurement system design: developing and testing a process‐based approach

The effectiveness of performance measurement is an issue of growing importance to industrialists and academics alike. Many organisations are investing considerable amounts of resource implementing measures that reflect all dimensions of their performance. Consideration is being given to what should be measured today, but little attention is being paid to the question of what should be measured tomorrow. Measurement systems should be dynamic. They have to be modified as circumstances change. Yet few organisations appear to have systematic processes in place for managing the evolution of their measurement systems and few researchers appear to have explored the question, what shapes the evolution of an organisation’s measurement system? The research reported in this paper seeks to address this gap in the literature by presenting data that describes the forces that shape the evolution of the measurement systems used by different organisations.

/pdf/a-framework-of-the-factors-affecting-the-evolution-of-3s61xyeooc.pdf

A framework of the factors affecting the evolution of performance measurement systems

Purpose – Scholars in the field of performance measurement tend to use the term business performance measurement (BPM) systems without explaining exactly what they mean by it. This lack of clarity creates confusion and comparability issues, and makes it difficult for researchers to build on one an each other's work. The purpose of this paper is to identify the key characteristics of a BPM system, by reviewing the different definitions of a BPM system that exist in the literature. This work aims to open a debate on what are the necessary and sufficient conditions of a BPM system. It is also hoped that a greater level of clarity in the performance measurement research arena will be encouraged.Design/methodology/approach – The performance measurement literature is reviewed using a systematic approach.Findings – Based on this research, a set of conditions of a BPM system has been proposed from which researchers can choose those which are necessary and sufficient conditions for their studies.Research limitatio...

/pdf/towards-a-definition-of-a-business-performance-measurement-he1sc9pdov.pdf

Mike Kennerley

Papers

The Performance Prism: The Scorecard for Measuring and Managing Business Success

Performance measurement system design: developing and testing a process‐based approach

Measuring performance in a changing business environment

A framework of the factors affecting the evolution of performance measurement systems

Towards a definition of a business performance measurement system