Performance measurement and strategic change

Author： O'Mara Charles E Hyland Paul W Chapman Ross L

ISSN： 0960-4529

Source： Managing Service Quality, Vol.8, Iss.3, 1998-03, pp. : 178-182

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Abstract

Performance measurement systems not only provide the data necessary for managers to control business activity, they also influence the behavior and decisions of managers. This being the case, a restrictive set of financial performance measures may adversely impact on an organization's long-term viability, so organizations should develop a broad range of performance measures. Berliner and Brimson state that "performance measurement is a key factor in ensuring the successful implementation of a company's strategy". Thus when organizations implement new strategies they should ensure that the appropriate set of performance measures are in place. In this paper we look at two case studies conducted in a medium-sized manufacturing firm and a large manufacturing firm, and evaluate the managers' perceptions of the strategy/performance measurement relationship, and the responsiveness of performance measures to changes in strategy.