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Analysing the requirements of performance measurement systems
KTH, School of Industrial Engineering and Management (ITM), Production Engineering.
2005 (English)In: Measuring Business Excellence, ISSN 1368-3047, E-ISSN 1758-8057, Vol. 9, no 4, 46-54 p.Article in journal (Refereed) Published
Abstract [en]

Purpose - Performance measurement is a subject that has been high on the agenda for over two decades. This article proposes making a contribution to this field by discussing how to deal systematically with all the requirements a performance measurement system (PMS) should fulfil. Design/methodology/approach - Different requirements suggested in the performance measurement literature from the past 20 years have been analysed in order to structure the different tasks to conduct designing a PMS. Findings - The article explains how to separate requirements that can be linked to a PMS and to an individual performance measure. It also suggests three system classes depending on what requirements a PMS fulfils. Finally a three-step procedure is proposed that describes how to evaluate and improve an existing PMS in a company. Practical implications - In practice, it is difficult to deal with numerous requirements simultaneously when designing a PMS. The article supplies measurement practitioners with tools to identify any priority important requirements. Originality/value - Several new ideas to the field of performance measurement are introduced and explained: the concept of system classes, classification of requirements and a simple three-step procedure to evaluate and improve PMS.

Place, publisher, year, edition, pages
2005. Vol. 9, no 4, 46-54 p.
Keyword [en]
Management information systems, Performance appraisal, Performance measures
National Category
Economics and Business
URN: urn:nbn:se:kth:diva-156493DOI: 10.1108/13683040510634835ScopusID: 2-s2.0-30844470220OAI: diva2:768109

QC 20141203

Available from: 2014-12-03 Created: 2014-11-28 Last updated: 2015-10-20Bibliographically approved

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