Minna Saunila, Tero Rantala, Juhani Ukko and Sanna Pekkola
Nowadays, maintenance companies form networks, where multiple organizations and actors can deliver value to the customers. Current literature does not take into account how the…
Abstract
Purpose
Nowadays, maintenance companies form networks, where multiple organizations and actors can deliver value to the customers. Current literature does not take into account how the value created by the entire network can be measured. The purpose of this paper is to address this research gap by identifying how the value created by the maintenance network as well as the participating individual organization can be measured simultaneously.
Design/methodology/approach
The research has been carried out using the qualitative research approach. The findings of the study are based on literature search as well as research processes carried out in two maintenance service networks.
Findings
The study presents a framework and propositions on how to measure network value in maintenance services. According to the results, the network value can be measured from the following five perspectives: financial capital, i.e., savings or growth; end customer capital such as the end customer satisfaction and recommending customers; network capital, i.e., know-how development and learning; sustainable capital such as business continuity and environmental safety; and relationship capital, such as reputation and new contacts.
Originality/value
Despite the increasing amount of literature on performance measurement in networks, theory is still lacking that reflects the complexity and dynamism when value is delivered to customers through maintenance networks. Significant novelty of the research is based on combining network, service, and value perspectives in performance measurement.
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Sanna Pekkola, Minna Saunila and Hannu Rantanen
The purpose of this paper is to examine how a performance measurement system (PMS) can be designed for small- and medium-sized enterprises (SMEs) operating in a turbulent…
Abstract
Purpose
The purpose of this paper is to examine how a performance measurement system (PMS) can be designed for small- and medium-sized enterprises (SMEs) operating in a turbulent environment. The current models and frameworks for the design and implementation of a PMS are for large companies; these traditional design and implementation processes are too multi-stage and long term for SMEs operating in a rapidly changing environment.
Design/methodology/approach
The study constructs a conceptual framework based on the performance measurement and management literature and empirical evidence from a longitudinal case study. Interviews, an analysis of strategic documents and documentation of the prevailing measurement system were conducted.
Findings
The study results reveal the framework for a flexible PMS design. In the framework, the PMS consists of core permanent measures that control the profitability of the company and supportive measures of the realisation of strategic targets. The supportive measures change and develop along with the strategy.
Originality/value
The study provides new understanding about the performance measurement design process in SMEs operating in a turbulent environment. The existing literature presents performance measurement design and implementation process models for large organisations, but these frameworks are too multi-stage and long term for SMEs.
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The purpose of this paper is to examine how a performance measurement system (PMS) can be designed for a collaborative network and to identify which factors affect such a design.
Abstract
Purpose
The purpose of this paper is to examine how a performance measurement system (PMS) can be designed for a collaborative network and to identify which factors affect such a design.
Design/methodology/approach
This is a single-case study of a collaborative network. The data have been collected from semi-structured interviews conducted during 2008-2009 and after the design process in 2010 and 2012, respectively.
Findings
The research results present a five-step process model for designing a PMS for a collaborative network. The findings show that a participatory development style that enhances socialisation, the positive development of a network culture and an outside facilitator all have beneficial effects on the design process.
Practical implications
The practical contribution of this study is related to knowledge about the PMS design process for a collaborative network to support its measurement-related development projects. This knowledge involves the phases of such a process as well as the various factors supporting or hindering it.
Originality/value
The study presents a PMS design process for the case network, which can be utilised in other collaborative networks in a similar context. It also highlights the most essential practical experiences related to this process.
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Sanna Pekkola, Sanna Hildén and Johanna Rämö
This study aims to examine how to measure and evaluate the level at which the management control system of the organisation supports reflective practices. Though the literature on…
Abstract
Purpose
This study aims to examine how to measure and evaluate the level at which the management control system of the organisation supports reflective practices. Though the literature on management control has recently recognised the value of reflection as a tool for organisational learning, there are few practical means of analysing the management control system alongside reflective activity. To improve and develop reflective practices for more comprehensive and systematic utilisation, the management control system has to support these practices.
Design/methodology/approach
The study is based on the current literature on reflection, reflective practices and management control and the pulling together of these three areas to determine how the evaluation and measurement of reflective practices should be organised. Based on that, the maturity model for measuring how the management control system supports reflective practices is elaborated. The empirical data testing the maturity model was collected from three case organisations.
Findings
As its main contribution, the study composes a maturity model for evaluating the stage of reflective practices within organisations/an organisation. The existing literature does not present models or frameworks for evaluating the maturity of this kind of competence development activity. The presented model has many advantages that make it useful for pragmatic assessment and facilitation of competence development processes.
Practical implications
As a practical tool, the maturity model helps to prioritise development actions when there is a need to enforce creative thinking (transformative learning) and sense-making within the organisation. Because an organisation cannot implement all the best practices in one phase, the maturity model can be used to introduce them in stages.
Originality/value
The study advances one way of defining measures for reflective practices such that they are led from the literature on such practices. In addition, the study composes a maturity model for evaluating an organisation’s stage of reflective practice. Before an organisation can develop and manage its reflective practices or identify necessary changes, the current state of its reflective practices should be analysed.
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Sanna Pekkola, Minna Saunila, Juhani Ukko and Tero Rantala
The purpose of this paper is to examine inter-organisational cooperation in delivering maintenance services, focusing on the level of maturity of this cooperation and the current…
Abstract
Purpose
The purpose of this paper is to examine inter-organisational cooperation in delivering maintenance services, focusing on the level of maturity of this cooperation and the current role of performance measurement in evaluating its effectiveness. It also determines how performance measurement should be developed to support the needs of networked maintenance.
Design/methodology/approach
The empirical evidence is based on two cases of networks operating in the field of industrial maintenance. The first network operates in the energy industry, while the second operates in the mining industry. Both networks consist of machine supplier companies, performance partner companies and system supplier companies. A total of seven companies participated in workshops and interviews in 2013-2014.
Findings
As a result of the study, suggestions for improving the performance measurement of service value in maintenance are presented and a framework is offered that meets the needs of the customer, service provider and equipment provider. The significant innovation of the research is its combination of network, service and value perspectives in performance measurement by presenting a framework for measuring created value of cooperation.
Originality/value
The literature calls for new measurement models and frameworks that support the new management challenges. This research creates a framework for practical applications. The framework helps to identify possible development needs and increases the understanding of what is required when cooperation in a maintenance network deepens, moving from machine partner towards value partner.
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Harri Laihonen, Aki Jääskeläinen and Sanna Pekkola
The purpose of this paper is to investigate the implications of the networked and open nature of the service business on performance measurement. The literature has acknowledged…
Abstract
Purpose
The purpose of this paper is to investigate the implications of the networked and open nature of the service business on performance measurement. The literature has acknowledged that the value of service is increasingly produced by service systems, but solutions for measuring the performance of a service system are still lacking.
Design/methodology/approach
The paper constructs a conceptual framework for capturing performance of a service system by combining ideas from the service management and performance measurement literatures. This framework is then applied in two service systems, one from the public sector and one from the private sector. Two different service systems provide complementary views on the phenomenon of service system performance and call for distinctive measurement solutions. In both cases, interviews, series of workshops and an analysis of documentation of the prevailing measurement systems were conducted when applying the framework.
Findings
The results indicate that the performance measurement of a service system necessitates measurement information from three perspectives: the performance of individual actors, the internal efficiency of a network and the customer-perceived performance of service operations. The paper provides empirical evidence about the design and implementation of performance measurement for a service system. It also provides some guidance to overcome the recognized measurement challenges that relate, for example, to the shared responsibilities, to integration of measurement data and to capturing customer-perceived impacts of services.
Originality/value
The paper provides new understanding about performance measurement practice in a service system. It integrates service-dominant management philosophy into the long tradition of performance measurement, which concentrates excessively on organizational structures. Even though the common balanced performance measurement frameworks include the perspective of a customer, the application of the frameworks is easily side-tracked leading to sub-optimization when several organizations and customers participate in value creation.
Practical implications
Empirical evidence illustrates the practical need for a new perspective on performance measurement of service systems. This can be achieved by shifting the unit of analysis from organizations to customer-perceived performance. The practical performance measurement systems need to balance with the aspects of effectiveness and outcomes of services, the efficiency of the production network and the performance of individual actors.
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Sanna Hildén, Sanna Pekkola and Johanna Rämö
The aim of this chapter is to highlight the role of organizational reflectiveness as a possible enabler for innovation. In order to support the process of innovation, we need to…
Abstract
Purpose
The aim of this chapter is to highlight the role of organizational reflectiveness as a possible enabler for innovation. In order to support the process of innovation, we need to understand organizational learning on a more detailed level, including reflection as an elemental sub-process in experiential, transformational, and action learning.
Findings
We present a tool and preliminary empirical findings for measuring an organization’s level of reflectiveness. We also provide some preliminary empirical results regarding whether reflectivity results in the generation of new innovations relating to work practices and processes.
Value
The chapter fills two research gaps, and in doing so contributes to measuring and controlling organizational learning and innovation activities. First, we complement the existing conceptualization of reflective practice by utilizing the management control system (MCS) (Malmi & Brown, 2008) in the analysis of reflectiveness on the organization level. Finally, in the conclusion, we present reflective practice as a potential concept and practical tool for enhancing the interactive use of MCS. The interactive use of MCS has been recognized for its potential in boosting learning, creativity, and innovations in certain contexts (Davila, Foster, & Oyon, 2009), but so far the definitions for interactive use remain descriptive and varied among management accounting theorists.
Approach
The approach in this study is predominantly conceptual, with empirical and exploratory findings derived from measuring the level of reflectiveness in three organizations. The study enhances the understanding of management control based on the theoretical notion of multilevel reflection on a practice-based level. Empirically, reflective practices are often studied as a learning phenomenon on the individual and collective levels. However, such an approach generally does not incorporate managerial pragmatism regarding the causes of institutionalized learning or the means of managerial control for enabling reflection and, in consequence, innovations.
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Paula Linna, Sanna Pekkola, Juhani Ukko and Helinä Melkas
This paper aims to identify what productivity means in the public sector, how it is measured and how it should be measured and improved, according to municipal authorities in…
Abstract
Purpose
This paper aims to identify what productivity means in the public sector, how it is measured and how it should be measured and improved, according to municipal authorities in managerial positions.
Design/methodology/approach
The approach is both theoretical and empirical. The first part is a literature review of research concerning public sector productivity. The second part presents findings of empirical research that is based on interviews and workshops with municipal authorities representing: special healthcare services; basic healthcare and social services, and educational services. The research was carried out in the Päijät‐Häme region, Finland.
Findings
According to the results, there is a certain mismatch between perceptions concerning productivity and the potential that lies in this concept as a functional tool in the public sector's development efforts. Public sector productivity cannot be developed and discussed without taking into consideration the issue of effectiveness.
Practical implications
Deeper common understanding concerning productivity and effectiveness and their measurement are likely to facilitate municipal decision making and service processes in individual workplaces as well as within and among different spheres of authority – and thus facilitate mutual learning.
Originality/value
This paper contributes to development and application of productivity and effectiveness thinking in the public sector. It is linked to service excellence, performance measurement and management systems, creativity in process delivery and deployment of improvement techniques in the public sector. It is of interest both to researchers and practitioners.
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Paula Linna, Sanna Pekkola, Juhani Ukko and Helinä Melkas
The paper aims to identify what productivity means in the public sector, how it is measured and how it should be measured and improved, according to municipal authorities in…
Abstract
Purpose
The paper aims to identify what productivity means in the public sector, how it is measured and how it should be measured and improved, according to municipal authorities in managerial positions.
Design/methodology/approach
The approach is both theoretical and empirical. The first part is a literature review of research concerning public sector productivity. The second part presents findings of empirical research that is based on interviews and workshops with municipal authorities representing: special healthcare services; basic healthcare and social services; and educational services. The research has been carried out in the Päijät‐Häme region, Finland.
Findings
According to the results, there is a certain mismatch between perceptions concerning productivity and the potential that lies in this concept as a functional tool in the public sector's development efforts. Public sector productivity cannot be developed and discussed without taking into consideration the issue of effectiveness.
Research limitations/implications
Deeper common understanding concerning productivity and effectiveness and their measurement is likely to facilitate municipal decision making and service processes in individual workplaces as well as within and among different spheres of authority – and thus facilitate mutual learning.
Originality/value
The paper contributes to development and application of productivity and effectiveness thinking in the public sector. It is linked to service excellence, performance measurement and management systems, creativity in process delivery and deployment of improvement techniques in the public sector. It is of interest both to researchers and to practitioners.
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The purpose of this paper is to examine how different network members utilize and use network‐level performance measurement information. This is an important approach when…
Abstract
Purpose
The purpose of this paper is to examine how different network members utilize and use network‐level performance measurement information. This is an important approach when discussing the management and development of a network by utilizing a performance measurement system.
Design/methodology/approach
The study is a single‐case study, where a collaborative network forms the case. The data of the study have been gathered from an action research process of network performance measurement system design and its implementation phase in 2009, interviews in 2010, and discussions with the interviewees in 2012 to re‐evaluate the results.
Findings
The results of the study reveal that the use of the network‐level performance measurement system increased communication, trust, and commitment in the whole network, as well as in a single reselling unit. The performance measurement information also helped the companies create better alignment with their network partners.
Practical implications
The paper presents the main uses, utilizations and benefits of network‐level performance measurement and management from the perspectives of the different network members.
Originality/value
The case study contributes to the literature of performance measurement and management in a network environment. It presents the main uses and utilization of network‐level performance management and measurement.