Bianca A.C. Groen, Mirthe van de Belt and Celeste P.M. Wilderom
The purpose of this paper is to show why developing an enabling performance measurement system (PMS) can be useful to small professional service firms (PSFs) and how small PSFs…
Abstract
Purpose
The purpose of this paper is to show why developing an enabling performance measurement system (PMS) can be useful to small professional service firms (PSFs) and how small PSFs can develop such an enabling PMS.
Design/methodology/approach
The authors used a process‐consultation type of action research design; they developed an enabling PMS in close cooperation with the employees of a small PSF. The effects of this intervention were assessed by means of document analysis, participant observation, and individual/group interviews.
Findings
The enabling PMS development process helped the firm deal with three challenges common to small PSFs: it increased employees’ understanding about how to apply the firm's strategy; it led to greater knowledge exchange among employees; and it enabled them to create new knowledge.
Research implications/limitations
The research results suggest the type of intervention used for developing an enabling PMS – that has already been shown to be effective in large firms – may also be useful for small PSFs. Similarities and differences with the intervention in large firms are discussed.
Practical implications
Small PSFs may benefit from the approach described herein: to develop a PMS in a participatory manner. It is especially useful if interested in better alignment of operations with strategy and/or to better explicate tacit and create new firm‐relevant knowledge.
Originality/value
This is the first paper about developing an enabling PMS in a small PSF.