André de Waal, Karima Kourtit and Peter Nijkamp
The purpose of this paper is to identify whether there exists a relationship between the level of completeness of a strategic performance management (SPM) system implementation…
Abstract
Purpose
The purpose of this paper is to identify whether there exists a relationship between the level of completeness of a strategic performance management (SPM) system implementation and the advantages and disadvantages an organization experiences from this system.
Design/methodology/approach
Advantages and disadvantages encountered during the implementation and use of an SPM system are collected from the literature and tested during extensive interviews at 17 prominent Dutch organizations (with 52 interviewees in total). During the interviews the level of completeness of the SPM system implementation is also assessed. Subsequently, the advantages, disadvantages and level of SPM system implementation completeness are related.
Findings
The research results show that organizations that have fully completed the SPM implementation gain more financial and non‐financial advantages and experience less disadvantages than organizations that are still in the process of implementing such a system. Organizations that have almost completed the implementation of the SPM system already gain qualitative advantages from this system, but they experience fewer financial advantages.
Research limitations/implications
The main limitation of the research is that the number of organizations investigated is limited in number and they are all profit sector companies from The Netherlands. Preferably, the number, sector and country coverage of the organizations should be increased in order to get a better spread of SPM system implementation completion stages and the experienced advantages and disadvantages.
Practical implications
Management now knows which advantages are to be expected at which stage of SPM implementation completeness, and can use the research results to convince staff that an SPM system will only yield full benefits to the organization when it has been completely implemented.
Originality/value
The need for efficient and effective SPM systems has increased over the past decade and the successful implementation and use of these systems have become of paramount importance to organizations. In this respect, one issue has been underexposed in the literature thus far, namely: the relationship between the level of completeness of the SPM implementation and the benefits organizations experience. This paper provides an overview of the main advantages and disadvantages to be expected at various stages of SPM implementation completeness.
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André de Waal and Karima Kourtit
Despite the fact that in recent years performance management and measurement (PMM) techniques and tools have attracted much research interest and that many scholars claim that…
Abstract
Purpose
Despite the fact that in recent years performance management and measurement (PMM) techniques and tools have attracted much research interest and that many scholars claim that implementing PMM yields many advantages, there is only a limited number of rigorous, systematic, scientific analysis of empirical studies into the benefits actually experienced by organizations in practice after introducing PMM. In addition little is known about specific reasons for organizations to start using PMM, and about the various relationships, if any, between the advantages, disadvantages and reasons for PMM use. This paper seeks to address these issues.
Design/methodology/approach
This article identifies the advantages, disadvantages and reasons for use of SPM which organizations have experienced in practice, based on an extensive literature research and interviews at 17 prominent Dutch organizations.
Findings
The study found four main advantages, two main disadvantages and two main reasons for use.
Research limitations/implications
The main limitation is that the number of participating organizations and interviewees could be higher.
Practical implications
The practical implication of this research is that implementing and using PMM yields specific benefits for an organization and that management now knows which advantages are to be expected.
Originality/value
This research shows that management needs to make the advantages of PMM explicit before the PMM implementation starts and keep stressing these advantages during and after implementation. This will heighten commitment of organizational members for PMM and increase a successful use of PMM.