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Forward performance measurement and management integrated frameworks

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Purpose ‐ In recent years, performance measurement and management (PMM) has received much attention from researchers and practitioners. Despite the growing use of PMM systems, companies experience difficulty in implementing such systems, with consequent risk of partial benefits or total goal failure. The literature on PMM is quite vast, but only few of the models address the problem in its entirety, while many other works focus on specific issues related to PMM. The purpose of this paper is to analyze the state of the art of PMM models and propose an integrated framework as a base for performance measurement and management design. Design/methodology/approach ‐ The evolution of the literature on PMM models and frameworks is highlighted starting from the development of the last twenty years. Further, the characteristics raised in the literature are merged so as to identify the milestones of an integrated performance measurement and management system. Based on it, an integrated framework is proposed as a base for a cohesive PMM design. Findings ‐ The framework integrates five systems: a performance system, a cost system, a capability evaluation system, a benchmarking system and a planning system. Research limitations/implications ‐ Though the proposed framework is a starting point for performance measurement and management design, it provides important guidelines for successful implementations of PMM initiatives inside companies. Practical implications ‐ The paper elaborates on the findings in the literature through a review and explores how the framework proposed might be implemented and improved. Originality/value ‐ The framework is based on the belief that PMM study requires an intensive and deep comprehension of the business in focus, which begins with a complete analysis of all the key activities in the company and their related drivers. Accordingly, the framework proposed starts with a defining "which" information should be analyzed, "how" they should be processed and "how" they should be integrated for generating valuable information to facilitate managers' decision-making processes.
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Keywords: Performance management; Performance measurement (quality)

Document Type: Research Article

Publication date: October 10, 2008

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