Dynamics of performance measurement systems

Begins by creating a vision for dynamic performance measurement systems and goes on to describe the background to the work. Develops a model for integrated and dynamic performance measurement systems. Provides a critical review of existing frameworks, models and techniques against the model. Identifies that current knowledge and techniques are sufficiently mature to create dynamic performance measurement systems. The use of the dynamic performance measurement system is illustrated through a case study. Concludes with a series of lessons highlighting further research and development needs. The vision We want to start this paper by creating a vision. You are the managing director of a manufacturing organisation, which designs, manufactures and sells products all over the world. You have a Business Performance Management module as part of your corporate ERP system. Imagine the following scenarios: (1) You log on to the system and it tells you that you now have invested enough in improving quality and that customer service should be targeted as the next priority area for improvement. It even points to the areas that should be targeted in order to achieve that improvement. (2) Your marketing manager conducts a customer satisfaction survey. The survey results indicate that you are not performing as well as your competitors on delivery reliability. The survey results are loaded onto your system, which identifies that delivery reliability is a critical order winning criteria in that particular market, and it highlights delivery reliability as a priority area for improvement. It also provides you with a performance report for the activities that have an impact on delivery reliability so that you and your team could develop a plan to improve delivery performance. (3) You get a message indicating that next season's products could suffer from more than normal post-release design changes, delaying launch and affecting customer satisfaction because the design reviews were not completed by all functions concerned. This paper will demonstrate that the current levels of understanding, together with the methods, tools and techniques available, are sufficient to develop truly dynamic performance measurement systems. The current issue and full text archive of this journal is available at http://www.emerald-library.com