Enhancing Performance Management Systems in a challenging environment

Titolo Rivista MANAGEMENT CONTROL
Autori/Curatori Laura Broccardo, Simona Alfiero, Francesca Culasso
Anno di pubblicazione 2024 Fascicolo 2024/1
Lingua Inglese Numero pagine 10 P. 5-14 Dimensione file 203 KB
DOI 10.3280/MACO2024-001001
Il DOI è il codice a barre della proprietà intellettuale: per saperne di più clicca qui

Anteprima articolo

FrancoAngeli è membro della Publishers International Linking Association, Inc (PILA)associazione indipendente e non profit per facilitare (attraverso i servizi tecnologici implementati da CrossRef.org) l’accesso degli studiosi ai contenuti digitali nelle pubblicazioni professionali e scientifiche

Amidst the backdrop of military conflicts, climate change, pandemics, and social disparities, it is clear that firms must acquire the necessary skills to effectively learn, respond promptly, and mitigate these global occurrences. Increased invest-ment in the deployment of robust and efficient performance management sys-tems is necessary to effectively lead firms in implementing their corporate strategy. Performance measurement systems encompass many processes, methods, and tools that are designed to quantitatively assess critical factors in order to facilitate the execution of a strategy. Moreover, these systems may serve as catalysts to promote debates and conversations, leading to the identification of improvement activities for corporate goals and performance. As a result, firms can achieve more rational growth. Moreover, when used and adjusted correctly, performance as-sessment systems enable firms to adapt and progress in accordance with the eco-nomic and social environment, as well as technological advancements, thus facing challenging contexts. Indeed, in performance measurement systems, it is crucial to ensure that the pa-rameters and measurement methods are appropriately adjusted. This is necessary to avoid a situation where the company's strategic goals, such as digitalization or sustainability, are measured in an unsuitable manner, delayed, and without align-ment with the formulated strategy or necessary adaptations. The volatility caused by external variables, such as emerging technology, envi-ronmental issues, crises, and organizational restructuring, influences and drives companies to implement and increase the utilization of performance measure-ment systems, which must be custom-designed to be aligned with the company’s requirements. Indeed, the consensus in the research is that there is no universally applicable performance management system. Instead, its design is contingent up-on contextual factors such as the environment, technology, strategy, and culture.

Keywords:Performance Measurement System, Challenge, Uncertainty, Adapta-bility

  1. Adonis, V.A. (2018), Performance management system for strategy implementation in local government: an integrated development planning perspective, Journal of Public Administration, 53(2), pp. 259-275.
  2. Benschop, Y. (2021), Grand challenges, feminist answers. Organization Theory, 2(3), 26317877211020323.
  3. Bechor, T., Neumann, S., Zviran, M., Glezer, C. (2010), A contingency model for estimating success of strategic information systems planning, Information & Management, 47(1), pp. 17-29.
  4. Bititci, U.S., Carrie, A. S., McDevitt, L. (1997), Integrated performance measurement systems: a development guide, International journal of operations & production management, 17(5), pp. 522-534.
  5. Cheng, M.M., Humphreys, K.A. (2016), Managing strategic uncertainty: The diversity and use of performance measures in the balanced scorecard, Managerial Auditing Journal, 31(4/5), pp. 512-534.
  6. Chenhall, R. H. (2003), Management control systems design within its organizational context: findings from contingency-based research and directions for the future, Accounting, organizations and society, 28(2-3), pp. 127-168.
  7. Chenhall, R.H. (2005), Integrative strategic performance measurement systems, strategic alignment of manufacturing, learning and strategic outcomes: an exploratory study, Accounting, organizations and society, 30(5), pp. 395-422.
  8. Cinquini L., Norreklit H. (2015), “Management Control” Special Issue: Research perspectives in Performance Management, Management Control, Special Issue 2, pp. 5-12. DOI: 10.3280/MACO2015-002001.
  9. Ferreira, P.G.S., Pinheiro de Lima, E., Eduardo Gouvea da Costa, S., Monteiro, N.J., de Castro e Silva, A. (2023), Key performance measurement capabilities for managing distributed teams, Total Quality Management & Business Excellence, 34(9-10), pp. 1071-1095.
  10. Gates, S. (2000), Strategic performance measurement systems: translating strategy into results, Journal of Applied Corporate Finance, 13(3), pp. 44-59.
  11. Grimes, M.G., Vogus, T.J. (2021), Inconceivable! Possibilistic thinking and the sociocognitive underpinnings of entrepreneurial responses to grand challenges, Organization Theory, 2(2), DOI: 10.1177/26317877211005780
  12. Guenther, T.W., Heinicke, A. (2019), Relationships among types of use, levels of sophistication, and organizational outcomes of performance measurement systems: The crucial role of design choices, Management Accounting Research, 42, pp. 1-25.
  13. Gümüsay, A.A., Marti, E., Trittin-Ulbrich, H., Wickert, C.(eds.) (2022). Organizing for Societal Grand Challenges, Research in the Sociology of Organizations 79, Bingley, Emerald Publishing.
  14. Hoque, Z. (2005), Linking environmental uncertainty to non-financial performance measures and performance: a research note, The British Accounting Review, 37(4), pp. 471-481.
  15. Ittner, C.D., Larcker, D.F., Randall, T. (2003), Performance implications of strategic performance measurement in financial services firms, Accounting, organizations and society, 28(7-8), pp. 715-741.
  16. Jardioui, M., Garengo, P., El Alami, S. (2020), How organizational culture influences performance measurement systems in SMEs, International Journal of Productivity and Performance Management, 69(2), pp. 217-235.
  17. Klovienė, L., Uosytė, I. (2019), Development of performance measurement system in the context of industry 4.0: a case study, Engineering Economics, 30(4), pp. 472-482.
  18. Mancini D., Lavorato D., Piedepalumbo P. (2023), Il contributo di Management Control alla ricerca su tecnologie digitali e sostenibilità, Management Control, 2, pp 5-18. DOI: 10.3280/MACO2023-002001.
  19. Marasca, S., Marchi, L., Riccaboni, A. (2009). Controllo di gestione: metodologie e strumenti (pp. 1-775), Knowità.
  20. Marchi L. (2020), Dalla crisi allo sviluppo sostenibile. Il ruolo dei sistemi di misurazione e controllo, Management Control, 3, pp. 5-16. DOI: 10.3280/MACO2020-003001.
  21. Melnyk, S.A., Bititci, U., Platts, K., Tobias, J., Andersen, B. (2014), Is performance measurement and management fit for the future?. Management accounting research, 25(2), pp. 173-186.
  22. Neely, A., Bourne, M. (2000), Why measurement initiatives fail. Measuring business excellence, 4(4), pp. 3-7.
  23. Neely, A., Gregory, M., Platts, K. (1995), Performance measurement system design: A literature review and research agenda, International journal of operations & production management, 15(4), pp. 80-116.
  24. Otley, D.T. (1980), The contingency theory of management accounting: achievement and prognosis, Accounting, organizations and society, 5(4), pp. 413-428.
  25. Otley, D. (1999), Performance management: a framework for management control systems research, Management accounting research, 10(4), pp. 363-382.
  26. Otley, D. (2012), Performance management under conditions of uncertainty: some valedictory reflections, Pacific Accounting Review, 24(3), pp. 247-261.
  27. Reinecke, J. (2018), Social Movements and Prefigurative Organizing: Confronting Entrenched Inequalities in Occupy London, Organization Studies, 39(9), pp. 1299-1321.
  28. Riccaboni, A., Leone, E.L. (2010). Implementing strategies through management control systems: the case of sustainability. International Journal of Productivity and Performance Management, 59(2), pp. 130-144.
  29. Rikhardsson, P., Rohde, C., Christensen, L., & Batt, C. E. (2021), Management controls and crisis: evidence from the banking sector. Accounting, Auditing & Accountability Journal, 34(4), pp. 757-785.
  30. Ukko, J., Hildén, S., Saunila, M., Tikkamäki, K. (2017), Comprehensive performance measurement and management–innovativeness and performance through reflective practice. Journal of Accounting & Organizational Change, 13(3), pp. 425-448.

Laura Broccardo, Simona Alfiero, Francesca Culasso, Enhancing Performance Management Systems in a challenging environment in "MANAGEMENT CONTROL" 1/2024, pp 5-14, DOI: 10.3280/MACO2024-001001