The Impact of Performance Measurement and Management Systems
What impact do Performance Measurement Systems have?
Over the past 15 years many companies have invested large amounts of time, effort and money redesigning their Performance Measurement Systems (PMS). By 2001, studies suggest that the balance scorecard (BSC) had been adopted by 44% of organisations Worldwide, 57% in the UK and more than 40% in the US. Survey data suggests that 85% of organisations will have PMS initiatives underway by the end of 2004.
But what has been the impact?
Despite the reported take up other organisations have not implemented new measurement systems. Evidence from German speaking countries reported that 8% of companies decided not to implement a PMS, in particular the BSC, because they do not see advantages 'positive impact'. Moreover some companies consider that the introduction of PMS and BSC demand too much effort and the return (benefits) are still unsure.
Despite these concerns, there has been little investigation on the impact of PMS on business results. There has been even less investigation to identify the positive factors that lead to positive impact of PMS in business results.
The Centre for Business Performance has a number of research projects to collect evidence of what the impact is and the positive factors associated. This research includes:
- An extensive systematic literature review of existing studies reporting the impact of measurement systems on performance
- PhD research into the Costs and Benefits of Intellectual Capital Measurement
- In-depth case studies identifying the factors that affect the impact of measurement systems on performance
- Extensive survey research to generalise the case study findings
For further information please contact:
Dr. Veronica Martinez (v.martinez@cranfield.ac.uk)
Links to Outputs and Publications
FREE DOWNLOADS
Cranfield Collection of E-Research - CERES
Martinez V. and Kennerley M.; How to maximise the effects of performance measurement and management systems.pdf
Martinez V. and Kennerley M.; What is the value of using performance measurement and management systems.pdf
Reports
National Audit Office (NAO) Report. Neely A., Micheli P. and Martinez V. (2006) “Acting on information performance management for the public sector; research supported by the EPSRC and the Advance Institute of Management (AIM).
EDF Energy Company Report. Martinez V., Kennerley M., Harpley R., Wakelen R., Hart K., and Webb J. (2006); “The study of the effects of performance measurement and management systems in the way the company operates”; Research Supported by the EPSRC.
Papers
Bromley M. Curthbertson R., Martinez V. and Kennerley M. (2006); “Performance management systems: Ambition into action”; EURAM Conference, Oslo Norway, May 17-20.
Martinez V. and Kennerley M. (2006); “Impact of performance reviews: a cross case comparison”; Strategic Management Society Conference, 29 Oct- 1 Nov. 2006; Vienna, Austria.
Martinez V. and Kennerley M. (2006); “Impact of performance management reviews: evidence from an energy supplier”, Academy of Management Conference, Atlanta Georgia, US; August, 11-16.
Martinez V. Kennerley M. and Neely A. (2005); ”Does performance measurement improve performance management and organisational performance?”; Performance Measurement Conference, Nice, France.
Martinez, V. and Kennerley, M. (2005); “Impact of performance management reviews: evidence from an energy supplier”; EUROMA Conference, Operations and Global Competitiveness, Budapest, Hungry, June: 19-22.
This paper won the Chris Voss highly commended award.
Neely A., Kennerley M. and. Martinez V. (2004); “Does the balance scorecard works? an empirical investigation”; EUROMA Conference, INSEAD, Fontainebleau, on the 27-29 June.
Kennerley, M and Bourne, M, (2003) "Assessing and Maximising the Impact of Measuring Business Performance", presented at the EurOMA & POMS Joint International Conference, Como Lake, Italy, June 16th-18th.
Franco-Santos M., Kennerley M., Micheli P., Martinez V., Mason S., Marr B., Gray D. and Neely A. (2007); “Towards a definition of a business performance measurement system”; International Journal of Operations and Production Management; Vol. 27 (8): 784-801.
Book Chapter
Martinez V. and Kennerley M. (2007); “Impact of performance management reviews: evidence from an energy supplier”; in the book Performance Management Systems: Case Studies; Editor V.V. Ramani; First Edition; The Icfai University Press; pp 53-70.