Challenges to Implementing Strategic Performance Measurement Systems in Multi-Objective Organizations: The Case of a Large Local Government Authority

Abacus ◽  
2008 ◽  
Vol 44 (4) ◽  
pp. 377-398 ◽  
Author(s):  
Claudine Umashev ◽  
Roger Willett
Keyword(s):  
Local Government ◽  
Performance Measurement ◽  
Strategic Performance ◽  
Measurement Systems ◽  
Multi Objective ◽  
Local Government Authority ◽  
Performance Measurement Systems ◽  
Government Authority

What Drives the Institutionalization of Performance Measurement Systems in Indonesian Local Government?

2019 ◽  
Vol 4 (1) ◽  
pp. 24-36
Author(s):  
Shuo Seah ◽  
Mirna Amirya ◽  
Qiao Wang
Keyword(s):  
Local Government ◽  
Performance Measurement ◽  
Institutional Theory ◽  
Local Governments ◽  
Single Case ◽  
Jel Classification ◽  
Measurement Systems ◽  
Performance Reporting ◽  
Performance Accountability ◽  
Performance Measurement Systems

Objective - The objective of this paper is to explore and understand the motivators of institutionalization of Performance Measurement Systems (PMS) in the Indonesian Local Government (ILG), particularly in the Batu municipality presenting the performance paradoxes. Performance accountability issues have been encouraging the Batu municipality to implement PMS since the beginning of the 2000s. Methodology/Technique - The theoretical framework and interpretation of this study are adopted from the institutional theory (coercive, mimetic, normative, and allomorphism) which is used to analyze the phenomenon. The researchers employ a single case study to scrutinize the motivators of institutionalization by elaborating on document analysis conducted from the interviews of 10 employees in a different range of management levels (top, middle, and lower). Findings - The results of this study reveal that exogenous (coercive, mimetic and normative) and endogenous (allomorphism) drivers encourage the institutionalization of PMS in the Batu municipality with coercive pressure as a major driver and allomorphism as a mere ceremonial driver (rather than an instrument). Novelty - The practical implications of this study can be used to improve the PMS process and the quality of performance reporting in the Batu municipality and in other local governments. This paper is also expected to fill the gap in existing literature on the implementation of PMS within a developing country (in this case, Indonesia). Type of Paper: Empirical Paper. Keywords: Performance Measurement Systems; Institutional Theory; Indonesian Local Government; Batu Municipality. JEL Classification: P47, M48, P49. DOI: https://doi.org/10.35609/jber.2019.4.1(3)

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.

Sign in / Sign up

Export Citation Format

Share Document