Do Characteristics of Strategic Performance Measurement Systems Used in Incentives Enhance Organizational Fairness?

2006 ◽  
Author(s):  
Laurie L. Burney ◽  
Christine A. Henle ◽  
Sally K. Widener
Keyword(s):  
Performance Measurement ◽  
Strategic Performance ◽  
Measurement Systems ◽  
Organizational Fairness ◽  
Performance Measurement Systems

The practice of strategic performance measurement systems

2015 ◽  
Vol 64 (2) ◽  
pp. 194-227 ◽  
Author(s):  
Riccardo Silvi ◽  
Monica Bartolini ◽  
Anna Raffoni ◽  
Franco Visani
Keyword(s):  
Performance Measurement ◽  
Information Needs ◽  
Management Control ◽  
Financial Indicators ◽  
Short Term ◽  
Content Type ◽  
Financial Measures ◽  
Strategic Performance ◽  
Measurement Systems ◽  
Performance Measurement Systems

Purpose – For over 20 years, management control literature has indicated the importance of supporting the strategy development and implementation process with strategic performance measurement systems (SPMS) and integrating traditional financial indicators with a set of multidimensional forward-looking measures focusing on the long term and linked to cause-effect relationships. Nevertheless, knowledge on the specific SPMS models used in practice and their effectiveness in supporting the managerial decision-making process is still fragmented and ambiguous. The purpose of this paper is to first analyse the SPMS models used in practice, also considering the role of strategy and firm size as drivers of adoption, thereafter analysing the capability of SPMS models to provide managers with measures that are consistent with their strategic information needs. Design/methodology/approach – The research is based on a survey involving 88 Italian medium-large sized firms (or subsidiaries of multinational firms) operating on a global level. Findings – The cluster analysis identifies two very different SPMS models used in practice. The first is the Short-term Financial Model, and as its name indicates, is based on short-term, internally focused and unconnected financial indicators. The second is the Multidimensional Additive Model, which integrates financial and non-financial measures but without a fully developed fit with the strategy. The research primarily indicates unsatisfied information needs in both clusters, presenting a significant challenge to the further development of existing SPMS models and in defining new theoretical SPMS frameworks. Practical implications – The adoption of an incremental approach to SPMS, simply adding new operational and strategic non-financial measures without a real fit with the strategy does not increase the information effectiveness of the system. Originality/value – The paper analyses the characteristics and use of SPMS models in practice from an exploratory perspective, defining and applying a model to evaluate the information effectiveness of SPMS.

The effectiveness of strategic performance measurement systems

2017 ◽  
Vol 66 (1) ◽  
pp. 3-21 ◽  
Author(s):  
Kevin Baird
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Content Type ◽  
Strategic Performance ◽  
Four Dimensions ◽  
Internal Customer ◽  
Measurement Systems ◽  
Business Units ◽  
Organisational Process ◽  
Performance Measurement Systems

Purpose The purpose of this paper is to examine how the characteristics of strategic performance measurement systems (SPMSs) influence the effectiveness of such systems. Specifically, the study examines the association between the following three strategic performance measurement approaches with the effectiveness of SPMSs: the use of multidimensional performance measures, the use of performance measures that are linked to value drivers, and the use of performance measures that are linked to strategy. Design/methodology/approach Data were collected using a mail questionnaire distributed to a random sample of 800 Australian manufacturing and service business units. Findings The use of multidimensional performance measures is found to positively influence the effectiveness of SPMSs. Practical implications Organisations need to strive to design their SPMSs in a manner which considers the achievement of both performance- and staff-related goals, with the findings suggesting that managers need to focus on a broad set of performance measures relating to the four dimensions of the BSC (financial, internal, customer, and learning and growth measures). Originality/value This study contributes to the literature by examining the important role that SPMSs play in the achievement of organisational process outcomes. The incorporation of a measure of organisational process effectiveness, and the subsequent identification of the performance-related outcome and staff-related outcome dimensions, provides future researchers with an alternative approach to analyse SPMS effectiveness and provides managers with an insight into how to adjust their SPMS to improve their organisational processes.

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