Strstegic control and performance measurement system

performance measurement systems

The suppositional activity extends the common language developed to approach the performance issues in the structuring activity, to a process of creating the scenarios for the design choices. The strategies that an organization adopts depend on the resources and strengths available with it and the strategic gaps existing in the marketplace.

Performance measures are of three types: performance indicators lead or lag indicatorskey performance indicators, and key result indicators.

Strategic approach to performance management

The process approach Cambridge Approach could be used to found all the implementing activities, integrating design and management processes Platts et al. Structurally the strategic management system could integrate the long and short-term perspectives. First, it will be related to the rationalities used in the operations management — OM — field, specifically in the domain of the performance management — PM — discipline, for producing knowledge that will be consolidated in theories, models, frameworks and processes. Globerson, S. Zilbovicius, M. Kaplan, R. Continuous improvement, organizational learning and the management of change process will be required properties for the strategic management of the operations function. One of the main tasks should be monitoring both financial and non-financial aspects of the obtained results Manoochehri, In fact, the main issue is related to the operation and management of a strategic system Bourne et al. For this purpose, the theoretical constructions developed by Neely and Slack et al. Leong, G. Maskell has also developed relevant principles for the performance measurement system design: a changing nature in measures; measures conceived as part of a fast feedback subsystem the performance measurement subsystem ; and measures designed to stimulate the development of a continuous improvement capability rather than simply monitor the operations strategy. Tsang, A. Santori, P.

Kennerley, M. The structuring activity is used to construct, Table I The research context Phase Description Problem identification The real benefits of strategic performance management systems are not being achieved Proposed frameworks The developed concepts, frameworks and theoretical assumptions area being reviewed Methods of application The design, implementation and management processes are being modified to attend the new specifications of the operations strategic management system Empirical investigation These new methodologies and systems will be tested Theoretical verification a new cycle of knowledge producing will be started as results are consolidated in the OM and PM approaches and theories j j VOL.

Strategic performance management pdf

In the early stages of the discipline, a great effort was developed to identify the main problems, followed by a structuring activity based on theoretical frameworks proposition that organized and addressed the knowledge body of the discipline to solve the identified problems. Folan, P. The structuring activity is used to construct, Table I The research context Phase Description Problem identification The real benefits of strategic performance management systems are not being achieved Proposed frameworks The developed concepts, frameworks and theoretical assumptions area being reviewed Methods of application The design, implementation and management processes are being modified to attend the new specifications of the operations strategic management system Empirical investigation These new methodologies and systems will be tested Theoretical verification a new cycle of knowledge producing will be started as results are consolidated in the OM and PM approaches and theories j j VOL. Santori, P. The association between roles, functions and capabilities of the operations strategic management system can be very useful for its design specification by establishing causality between roles and organisational resources. The three interrelated activities could play a special role in integrating design, implementation and management of an operations strategic management system. Slack identifies three main phases in the process of redesigning a manufacturing system, which are: the structuring activity, the suppositional activity and the assimilation activity. Slack, N. Bhimani, A. In fact, the main issue is related to the operation and management of a strategic system Bourne et al.

The operations strategy formulation process analyses the qualifying and the winners competitive dimensions, dealing with the trade-offs and planning the paths and trajectories for capabilities development. In the implementation of the BSC, these perspectives are seen and evaluated in an interconnected manner and not as standalone perspectives.

Gomes, C. According to Rockart, CSFs are "the limited number of areas in which results, if they are satisfactory, will ensure successful competitive performance for the organization. Supported by concepts like positions, processes, paths and trajectories, the framework for the predictive control strategy could be conceived.

Strategic performance management framework

The performance measurement system is responsible for the strategy implementation management process. Kaplan, R. For this purpose, the theoretical constructions developed by Neely and Slack et al. Lingle, J. Folan, P. It is a concept which combines financial and non-financial measures, short-term and long-term goals, the organization's market performance and internal improvements, past outputs and ongoing requirements. On , he carried out a post-doctoral research in strategic operations management at the Operations Management Group of the Warwick Business School, UK. The presented approaches were selected to provide some specific features for the operations strategic management system, which could be summarized as: B The system will structurally provide organizational learning as an important outcome of the design process Slack, , the implementation process Platts, and the management process, which is set by definition as a strategic management system. They also emphasise the importance of covering the long, medium and short-term perspectives of the life cycle of an organization when designing the performance measurement system. Maskell, B. The second level that the presented research is related explains how it addresses practical issues, in designing, implementing and managing the operations strategic management systems. The vision and mission statement together provide growth directions for the organization and control the allocation of resources.

Key result indicators are useful for governance and are usually reported to the top management and the board on a monthly or quarterly basis.

Strategic Performance Control : Overview Strategic learning involves anticipating changes, monitoring the business environment continuously, and taking proactive steps. Bhimani, A. It can be seen from Gomes et al.

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Strategic performance measurement systems: a discussion about their roles