Measuring performance in R&NPD: The case of Whitehead Alenia Sistemi Subacquei – a Finmeccanica company

Abstract

Purpose

Implementing a performance measurement system (PMS) for research and new product development (R&NPD) is fundamental for supporting decision making but is a challenging task, because effort levels are not measurable and success is highly uncertain. The purpose of this paper is to investigate the design of a PMS in R&NPD in a case study based on the balanced scorecard and Lynch and Cross's pyramidal framework.

Design/methodology/approach

The case study regards Whitehead Alenia Sistemi Subacquei that was thought to be a proper company for the empirical analysis for its strong reliance on R&NPD activities, the adoption of a PMS in the R&NPD department and the lack of contributions in the literature that investigate the design of a PMS for R&NPD function in the context of the military industry.

Findings

Relevant managerial implications can be drawn: there is the need for different perspectives in measuring performance in an NPD environment, beyond the iron triangle (time, cost and quality); the use of different perspectives/indicators allows tailoring PMS to the specific object of control, coherently with the need to identify specific responsibilities for each measured performance; the adoption of different performance perspectives/indicators should not prevent a holistic view of performance, in which the different performance perspectives/indicators are related with the overall R&NPD economic performance and implementation matters: sharing with people the measurement aim/characteristics make the PMS understandable and acceptable.

Originality/value

Although this subject has been debated in the literature, more study of applications in real contexts is needed.

Citation

Bassani, C., Lazzarotti, V., Manzini, R., Pellegrini, L. and Santomauro, S. (2010), "Measuring performance in R&NPD: The case of Whitehead Alenia Sistemi Subacquei – a Finmeccanica company", European Journal of Innovation Management, Vol. 13 No. 4, pp. 481-506. https://doi.org/10.1108/14601061011086302