Agile performance measurement system development: an answer to the need for adaptability?

2019 ◽  
Vol 15 (2) ◽  
pp. 231-256 ◽  
Author(s):  
Kati Tuulikki Stormi ◽  
Teemu Laine ◽  
Tuomas Korhonen
Keyword(s):  
Performance Measurement ◽  
Measurement System ◽  
Management Accounting ◽  
System Development ◽  
Development Project ◽  
Performance Measurement System ◽  
Agile Development ◽  
New Approach ◽  
Content Type ◽  
Agile Methodologies

Purpose The purpose of this study is to reflect upon the feasibility of agile methodologies, Scrum in particular, to supplement the procedural design and implementation of performance measurement systems (PMS). Design/methodology/approach The study is an interventionist case study that applied agile methodologies in the PMS development. Researchers actively participated in the PMS development, e.g. researchers designed some of the performance measurement prototypes in order to facilitate the agile development. Findings The study outlines an agile approach suitable for PMS development. The paper answers the topical needs for adaptability and agility in management accounting, by applying agile methodologies into PMS development. PMS development does not take place only as a project or process that systematically progresses from the measure selection to measure implementation. Instead, as the requirements for the PMS change during the development project, management may reject some measures and new measures emerge as the understanding about changing situations increase. Agile methodologies are a methodological way to respond to the inevitable change and to enhance management accounting adaptability. Research limitations/implications This study contributes to the PMS literature by proposing that agile development methodologies can advance organizational features that increase management accounting adaptability. As a result, the study proposes a new approach for PMS development to supplement existing ones. Agile methodologies are especially suitable for extending the PMS in new, yet relatively immature areas of performance measurement. The new approach applies Scrum principles in PMS development. By drawing from the theories of performance measurement (system) development and enabling PMS, the paper furthers academic understanding about agile development of accounting information systems. Practical implications Companies can use the proposed approach in PMS development, particularly after the initial system implementation in redesigning the system. The approach may increase the PMS impact in organizations and prevent PMS implementation failures. Originality/value The paper identifies the potential of using agile methodologies to enhance PMS adaptability and provides preliminary evidence of the potential of such approach in supplementing processual PMS development frameworks.

Visualization techniques supporting performance measurement system development

2016 ◽  
Vol 20 (2) ◽  
pp. 13-25 ◽  
Author(s):  
Aki Jääskeläinen ◽  
Juho-Matias Roitto
Keyword(s):  
Performance Measurement ◽  
Information Visualization ◽  
Measurement System ◽  
Quantitative Methods ◽  
Development Process ◽  
System Development ◽  
Measurement Development ◽  
Performance Measurement System ◽  
Content Type ◽  
Visualization Techniques

Purpose This paper aims to understand how performance measurement system development process can be supported by visualization techniques. It analyses the suitability of different visualization techniques in the tasks needed in designing, implementing and using performance measurement. Design/methodology/approach The research builds upon literature review and analysis. The empirical access to five recent performance measurement system development projects is also used to evaluate the applicability of visualization techniques. The emphasis is in information visualization, and the following techniques are examined: maps, diagrams, networks, visualized models, graphs, charts and dashboards. Findings The study provides a concise overview on visualization techniques highlighting the managerial tasks related to performance measurement system development process. It contributes as a discussion opener inviting more academicians to study the topic of visualization in management and to further test and broaden the proposals presented in the paper. Research limitations/implications Further in-depth empirical research is needed regarding each phase of performance measurement development process. A further study could also stress more the proactive use of performance measurement paying attention also to the external environment. Practical implications The topic of information visualization is practically driven. The results support practitioners in evaluating and choosing visualization techniques supporting their timely challenges in the performance measurement development. Originality/value Few studies on information visualization have been carried out in the context of management science. Visualization can integrate human in the data exploration process and improve understanding over large data sets without complex quantitative methods. Visualization techniques have been proposed as powerful means to enhance the effectiveness of performance measurement. This study structures and clarifies the ambiguous topic of visualization and performance management and suggests areas for further research.

Supplier performance measurement system use, relationship trust, and performance improvement: a dyadic perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vieri Maestrini ◽  
Andrea Stefano Patrucco ◽  
Davide Luzzini ◽  
Federico Caniato ◽  
Paolo Maccarrone
Keyword(s):  
Performance Measurement ◽  
Performance Improvement ◽  
Measurement System ◽  
Structural Equation ◽  
Performance Measurement System ◽  
Content Type ◽  
Performance Improvements ◽  
Supplier Performance ◽  
Performance Measurement Systems ◽  
The Impact

PurposeGrounding on resource orchestration theory, this paper aims to study the relationship between the way buying companies use their supplier performance measurement systems and the performance improvements obtained from suppliers, with relationship trust identified as a mediator in the previous link.Design/methodology/approachThe authors design a conceptual model and test it through structural equation modelling on a final sample of 147 buyer-supplier responses, collected by means of a dyadic survey.FindingsResults suggest that the buyer company may achieve the most by balancing a diagnostic and interactive use of the measurement system, as they are both positively related to supplier performance improvement. Furthermore, relationship trust acts as a mediator in case of the interactive use, but not for the diagnostic. This type of use negatively affects relationship trust, due to its mechanistic use in the buyer-supplier relationship.Originality/valueThe authors’ results contribute to the current academic debate about supplier performance measurement system design and use by analyzing the impact of different supplier performance measurement system uses, and highlighting their relative impact on relationship trust and supplier performance improvement. From a methodological perspective, adopting a dyadic data collection process increases the robustness of the findings.

Development of footprint framework of performance measurement system for SMMOs

2020 ◽  
Vol 17 (5) ◽  
pp. 727-756
Author(s):  
G.S. Dangayach ◽  
Gaurav Gaurav ◽  
Sumit Gupta
Keyword(s):  
Performance Measurement ◽  
Business Model ◽  
Measurement System ◽  
Ease Of Use ◽  
Performance Measurement System ◽  
Barriers To Adoption ◽  
Rapid Improvement ◽  
Research Attention ◽  
Content Type ◽  
Design And Implementation

PurposeThe performance measurement system (PMS), recognized as an important tool for rapid improvement, has found wide applications in the larger organizations and has received a lot of research attention in recent past. PMS adoption in SMEs is low even though SMEs have realized its importance and benefits and are now ready to embrace PMS as a tool for improvement. This paper proposes a novel framework, called the footprint framework, for design and implementation of PMS for SMEs. The proposed framework overcomes some of the major barriers to adoption by simplifying the process of design and implementation of PMS.Design/methodology/approachThe theoretical framework was conceptualized and its basis was tested for feasibility using an industry survey. The survey was analyzed using the statistical tools available in the SPSS 24.0 statistical analysis software, and the insights obtained from this analysis were used to shape the proposed framework. The framework was populated for small and medium manufacturing organizations (SMMOs) as a case study. Analytic hierarchy process was used to synthesize the data provided by the survey to build up the proposed framework and its components.FindingsThe footprint framework is a unique framework in the respect that it consists of a set of PMS suited to different company profiles that can be accessed quickly. Any SMMO that desires to determine its future PM requirements has simply to define its probable profile of the future in terms of size, business model and order winner and check the PMS appropriate to that profile from the footprint framework. Thus the SMMO can even prepare for its futuristic PM needs.Research limitations/implicationsThe proposed framework overcomes some of the major barriers to adoption by simplifying the process of design and implementation of PMS. The main advantages of the footprint framework are its simplicity, ease of use, immediate implementation and a built-in knowledge bank.Practical implicationsThis research has proposed a new PMS framework, an out of the box tool that makes it possible for the Indian SMMO to adopt PMS on an instant basis. The footprint framework combines the experience of several researchers and several practitioners to offer a ready-made starter kit that needs no other aid to implement a most appropriate PMS and leverage the industry PM best practices to build the performance measurement knowledge and expertise of the SMMO without going through a protracted learning or training process.Social implicationsThis research has made a novel proposal for a PMS framework by proposing the footprint framework – a PMS framework that is not only an instant, out of the box solution for the SMMOs but also incorporates the know-how to implement the performance measurement complete with information on what to measure, how to interpret and what should be done to improve.Originality/valueThe proposed framework is simple to understand and removes a key barrier of PMS adoption for SMMOs. The user SMMO needs to state its size, business model and order winner from the available options, build up its PMS code, select the matching PMS from the framework and the SMMO is ready to implement the PMS.

scholarly journals A performance measurement system for change initiatives

2019 ◽  
Vol 25 (7) ◽  
pp. 1647-1672
Author(s):  
Dag Naslund ◽  
Andreas Norrman
Keyword(s):  
Organizational Change ◽  
Performance Measurement ◽  
Measurement System ◽  
Major Change ◽  
Process Efficiency ◽  
Performance Measurement System ◽  
Change Initiative ◽  
Change Initiatives ◽  
Content Type ◽  
Practical Reality

Purpose The purpose of this paper is to develop, implement, test and further enhance a framework for measuring organizational change initiatives. Design/methodology/approach The conceptual part of the framework is based on the structured analysis of existing literature. The framework was further developed during an action research (AR) study where the authors developed, implemented, evaluated and improved the measurement system for organizational change initiatives. Findings The academic literature is rich in conceptual articles providing required characteristics of a “good” measurement system and frameworks for how organizations should measure performance. However, academia provides less empirical evidence of how these performance measurement systems can be implemented, evaluated and improved. In this paper, the authors present a study where the developed measurement system has been implemented, evaluated and improved. The results in terms of how the actual framework worked as well as the response from the case organizations are equally positive. Research limitations/implications The framework has been implemented in two different, major change initiatives in one case organization. While the results are truly encouraging, the framework needs to be further tested and refined in more organizations. Practical implications There is a gap between academic perception and practical reality regarding how organizations should measure performance in general as well as measuring organizational change initiatives. The presented, and empirically tested, framework measures both the results of the change initiative (effectiveness) the actual change process (efficiency) as well as the perception of the change initiative and process from different key stakeholders. Originality/value This is the first developed, implemented and further improved measurement system for organizational change which measures both the efficiency and effectiveness of the change initiative (process).

Performance measurement effects on organizational responses to threats

2015 ◽  
Vol 19 (1) ◽  
pp. 24-32 ◽  
Author(s):  
George Huber
Keyword(s):  
Performance Measurement ◽  
Organizational Performance ◽  
Performance Management ◽  
Measurement System ◽  
Management System ◽  
Organization Design ◽  
Performance Measurement System ◽  
Performance Management System ◽  
Content Type ◽  
Management Literature

Purpose – The purpose of this paper is to explain how an organization’s performance measurement system can influence the appropriateness of an organization’s responses to threats. Design/methodology/approach – Inductive and deductive reasoning, drawing on major theories and on empirical findings in the management literature. Findings – An organization’s performance measurement system can influence the effectiveness of the organization’s detections of threats and the appropriateness of the organization’s responses to threats and, in these ways, contribute to the organization’s robustness and sustainability. Practical implications – Formation of an appropriate performance management system can prove critical to both detection of and responses to organizational threats. As such, an organizational performance management system can contribute to organizational robustness and sustainability. Originality/value – The idea, that an organization’s performance measurement system can influence the effectiveness of the organization’s detections of threats and the appropriateness of the organization’s responses to threats, is not articulated in the management literature. Thus, the research reported here is original and would seem to have value to the research community, the organization design community (as an organization’s control systems are an important component of its architecture), and the management community.

Process performance measurement system – towards a customer-oriented solution

2015 ◽  
Vol 21 (2) ◽  
pp. 312-331 ◽  
Author(s):  
Uwe Wieland ◽  
Marco Fischer ◽  
Marcus Pfitzner ◽  
Andreas Hilbert
Keyword(s):  
Literature Review ◽  
Performance Measurement ◽  
Measurement System ◽  
Performance Measurement System ◽  
Process Performance ◽  
Customer Requirements ◽  
Design Features ◽  
Content Type ◽  
Critical Design ◽  
Design Recommendation

Purpose – Based on a systematic literature review, requirements on a PPMS are identified in order to derive concrete demands and design features for such a system by using quality function deployment (QFD). The purpose of this paper is to formulate a proposal for design recommendations toward a holistic, customer-oriented Process Performance Measurement System (PPMS). Design/methodology/approach – A literature review is used to identify customer demands and design features that characterize a PPMS. To determine the critical design features of a customer-oriented solution, the QFD method is applied. Findings – The paper confirms that there is currently no published concept for an integrated, holistic PPMS. Therefore it provides a first approach to the formulation of a design recommendation based on the customer requirements and design features. A literature-based weighting facilitates a first identification of critical design features. The identified conditions specify the context which can be regarded as a prerequisite for the application of the system. Research limitations/implications – As a result of the investigation, two main issues were identified, which restrict the complete development of a House-of-Quality matrix and therefore require further research: First, no reliable relationships between the customer requirements and design features could be derived from the conducted content analysis and second, no correlations between the identified design features could be detected. Practical implications – The paper provides a design basis for specific application systems and their information requirement analyses. It can also serve as an evaluation basis for existing software products in the market. Originality/value – The connection of a literature review with the QFD procedure transfers a consolidated state of PPMS research into an applicable design recommendation and therefore supports rigor and relevance of the research.

Measuring the success of a performance measurement system in Thai firms

2012 ◽  
Vol 61 (5) ◽  
pp. 548-562 ◽  
Author(s):  
Nopadol Rompho ◽  
Sakun Boon‐itt
Keyword(s):  
Performance Measurement ◽  
Measurement System ◽  
Measurement Model ◽  
The Body ◽  
Performance Measurement System ◽  
Content Type ◽  
Body Of Knowledge ◽  
Proposed Model ◽  
Confirmatory Factor ◽  
A Performance

PurposeThis study aims to identify what managers involved in the design of a performance measurement system (PMS) perceive are the attributes of a successful PMS.Design/methodology/approachA total of 85 managers from Thai firms were interviewed to develop the proposed model to measure the success of a PMS. Results from 269 returned questionnaires from Thai managers were analysed by second order confirmatory factor analysis (CFA).FindingsBased on the study's findings, success of PMS was categorised into two aspects: design success and implementation success. Using CFA the empirical data demonstrate a good fit with the proposed measurement model.Research limitations/implicationsThe results of this study are based on the opinions of managers and therefore their accuracy is open to question. Adding non‐managerial perspectives might demonstrate another picture.Practical implicationsThe findings could well be useful for managers in any organisation. They can assist the manager in judging whether or not the company's PMS is successful according to the discovered criteria. Use of these criteria could lead to better decision‐making in the design and implementation of a PMS framework in any organisation.Originality/valueThis study enhances the body of knowledge by defining what a successful PMS means to managers in Thai firms. The results of this study can be applied to any country, but perceptions of what is important could vary from country to country.

scholarly journals Performance measurement systems in auditing firms

2015 ◽  
Vol 5 (4) ◽  
pp. 395-423 ◽  
Author(s):  
Mohamed Hegazy ◽  
Myada Tawfik
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Measurement System ◽  
Performance Measurement System ◽  
Future Research ◽  
High Quality ◽  
Content Type ◽  
Financial Measures ◽  
Measurement Systems ◽  
Performance Measurement Systems

Purpose – The purpose of this paper is to investigate challenges facing auditing firms in designing and measuring their performance and discusses why and how the balance scorecard (BSC) could support the auditing firms overcome such challenges. The paper contributes to the existing literature by identifying the peculiarity of the auditing firms in designing and implementing performance measurement systems including the need for sound and advanced information systems, subjectivity embedded in measuring customer satisfaction, growth and success of the firms and restrictions imposed by regulations and auditing standards for the provision of non-audit services which may increase the firms’ revenues and profits to help maintain high-quality outputs. Also, the paper provided evidence for the use of non-financial measures in service industry in particular for customers and finance. The unique dilemma in the auditing firms to provide services to satisfy customers yet maintaining distance and independence from them represent an important research question requiring investigation and study. Design/methodology/approach – A review of the literature for performance evaluation in general and in particular BSCs in service industries was made to identify challenges facing auditing firms when measuring their performance. Data were collected using case study approach; two auditing firms, one of the Big 4 and a medium size auditing firm with international affiliation operating in the Egyptian market were selected. Interviews, document analysis and participant observations were used in the analysis of each firm performance measurement system. Findings – The paper suggests that major challenges face auditing firms in measuring their performance mainly the size of the firm and its affiliation with international auditing firm, the qualification and experience of partners and audit managers needed for the design and implementation of a BSC or similar performance measures, the resources required for the introduction of such performance measure and the peculiarity of the auditor and client relationship with the need to maintain independence and confidentiality while providing high-quality services. Although both auditing firms being studied have formal performance measurement systems, they differ in their degree of comprehensiveness. In particular, the performance measurement system of the larger firm is more elaborate than that of the smaller one and both place more emphasis on qualitative measures such as learning and growth and internal business processes than financial measures. Research limitations/implications – Overall, the results have implications for understanding the performance measurement process of auditing firms in general and in particular in an emerging economy such as Egypt. The identification of the challenges facing auditing firms in measuring their performance and how the implementation of BSC can help partners and employees to overcome those challenges will add to the literature for performance evaluation in service companies. Future research should be carried to compare and assess differences between the behavioural aspects of performance measures in auditing firms and possible application of BSC in such firms and those used in services industry. Also, the practicality of implementing a BSC measures for different auditing firms should be investigated further in future research. Originality/value – The research among the first to investigate the challenges facing auditing firms in designing and operating a performance measurement system and to discuss, using case studies, how a BSC could support the auditing firms to overcome such challenges. Further, the research provides insights into performance measures in auditing firms in developing economies like Egypt which are sparse since most studies have been conducted in developed economies. Also, the paper enriches the literature of performance measurement systems in service rather than the manufacturing sector especially for medium and small size firms.

scholarly journals The effects of performance measurement system uses on organizational ambidexterity and firm performance

2021 ◽  
Vol 41 (13) ◽  
pp. 127-151
Author(s):  
Matteo Mura ◽  
Pietro Micheli ◽  
Mariolina Longo
Keyword(s):  
Firm Performance ◽  
Performance Measurement ◽  
Measurement System ◽  
Positive Association ◽  
Ordinary Least Squares ◽  
Performance Measurement System ◽  
Organizational Ambidexterity ◽  
Accounting Data ◽  
Content Type ◽  
Diagnostic Use

PurposeThis study aims to investigate how dynamic tensions between performance measurement system (PMS) uses enable organizations to achieve both exploitation and exploration and enhance firm performance.Design/methodology/approachThe authors collected survey data on 153 Italian companies. Scales for each construct were validated through an exploratory factor analysis. Data on firm performance were cross-validated by using lagged accounting data. The authors tested our hypotheses using hierarchical ordinary least squares regressions, together with bootstrapping procedures for the test on mediation.FindingsA diagnostic use of PMS has a positive association with both exploitation – e.g. reductions in total costs and lead times – and exploration, e.g. introduction of new products and extension of product ranges. The dynamic tension created by a joint diagnostic and interactive use has the strongest association with organizational ambidexterity, measured as the multiplicative interaction between exploration and exploitation.Practical implicationsIf an organization or business unit is mainly pursuing exploitative goals, a mainly diagnostic use of PMS would be most suitable. If goals are both exploitative and explorative, a mix of diagnostic and interactive uses would be most effective.Originality/valueThis research helps reconcile conflicting views in the literature. The diagnostic use of PMS, far from acting as a “negative force,” appears to be necessary to guide opportunity search and to establish an appropriate scope for exploration-related activities. The authors’ focus on the uses of PMSs shows that ambidexterity is achieved through managerial capability, rather than just through the introduction of systems and structures.

scholarly journals Key characteristics for designing a supply chain performance measurement system

2019 ◽  
Vol 68 (2) ◽  
pp. 296-318 ◽  
Author(s):  
Sara Elgazzar ◽  
Nicoleta Tipi ◽  
Glynis Jones
Keyword(s):  
Supply Chain ◽  
Performance Measurement ◽  
Conceptual Framework ◽  
Measurement System ◽  
Performance Measurement System ◽  
Supply Chain Performance ◽  
Content Type ◽  
Design Elements ◽  
Practical Implications ◽  
Insight Into

Purpose The purpose of this paper is to conduct a review of the literature that gives insight into design elements for constructing a supply chain performance measurement (SCPM) system. Design/methodology/approach A systematic review of published research on SCPM systems and frameworks over the last two decades was conducted with the purpose of categorising key functions of SCPM systems by providing an insight into the design, functionality, implementation and practical implications of SCPM systems. Findings The review revealed a set of functions governing the SCPM system that have not been fully explored in previous research: the process focus, prioritisation, integration and causality functions of a SCPM system. A relationship between two or more functions can be created to include more functionality based on the needs of the company to create a comprehensive performance measurement system. Research limitations/implications The paper concludes with a conceptual framework to guide future research in the area of designing a SCPM system and define the main aspects that should be considered when developing a SCPM system. Practical implications The paper brings a new dimension to the SCPM research by identifying the main functions of SCPM systems that could benefit practitioners to set up a SCPM system relevant to its intended function. The paper presents multiple potential stages of merging different functions in one SCPM system. Based on the company’s needs and context, the functionality of the SCPM system can be designed at four levels creating ten possible scenarios when designing a company’s SCPM system. Originality/value The paper integrated the literature and findings of 269 research papers of the last two decades, upon which a conceptual framework was developed as a guide for constructing an effective SCPM system.

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