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  • 1.
    Tangen, Stefan
    KTH, School of Industrial Engineering and Management (ITM), Production Engineering.
    Analysing the requirements of performance measurement systems2005In: Measuring Business Excellence, ISSN 1368-3047, E-ISSN 1758-8057, Vol. 9, no 4, p. 46-54Article in journal (Refereed)
    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.

  • 2.
    Tangen, Stefan
    KTH, School of Industrial Engineering and Management (ITM), Production Engineering.
    Demystifying productivity and performance2005In: International Journal of Productivity and Performance Management, ISSN 1741-0401, E-ISSN 1758-6658, Vol. 54, no 1, p. 34-46Article in journal (Refereed)
    Abstract [en]

    Purpose - Examines the ways in which the concepts of " productivity" and "performance" are dealt with in the literature, demonstrating that terms used within these fields are often vaguely defined and poorly understood. Design/methodology/approach - Reviews related performance literature from the past 30 years (of both an academic and a practical nature). Findings - Clarifies the meaning of five terms (productivity, performance, profitability, efficiency, effectiveness) and shows how they are inter-related. Research limitations/implications - The creation of a common grammar is not an easy task; one must therefore still accept the fact that people will continue to interpret the terms described in this paper in slightly various ways. Practical implications - Measurement and improvement regimes are often built without a clear understanding of what is being measured or improved. This can be regarded as simply a pragmatic approach to improvement, or a missed opportunity to fully understand and then optimise important factors relating to competitiveness and success. Originality/value - The paper creates a terminology that reduces the existing confusion within the field. Certainly, within academia and industry, a shared vocabulary and grammar are helpful in ensuring rigorous and robust development of shared understanding.

  • 3.
    Tangen, Stefan
    KTH, Superseded Departments, Production Engineering.
    Evaluation and revision of performance measurement systems2004Doctoral thesis, monograph (Other scientific)
    Abstract [en]

    Performance measurement is a topic that has received considerable attention during the last decades. There are many motives for using performance measures in a company but perhaps the most crucial one is that they will help to improve productivity when used properly. Productivity is of vital importance to a company’s ability to compete and make profits over time. A company that is not able to efficiently utilise its resources in creating value for its customers will not survive in the competitive business environment of today.

    However, the development of fully functional and suitable performance measurement systems (i.e. set of measures) has proven to be a very challenging task. This research has focused on the last phase of the development of performance measurement system, namely the continuous updating of the performance measures, which still have not been explored in a satisfactory manner. The objective is to investigate and clarify how to evaluate and revise performance measurement systems. In order to reach this objective, several obstacles that contribute to the complexity of the research area are treated.

    In the beginning, the thesis thoroughly investigates the confusing terminology within the field and frequently used terms like productivity, profitability, performance, efficiency and effectiveness are explained. Then, a categorisation of ways to measure performance is presented along with advantages and shortcomings of different productivity and other performance measures. Several key-factors found to affect the productivity of a manufacturing company are also discussed, such as: design of processes and equipment, disturbances and losses, management and control, product design, and job design and work organisation. Much attention is given to the different requirements that performance measurement systems must fulfil, both on the system level and the measure level. Finally a method called the performance measurement progression map is finally proposed, which has been developed in order to give measurement practitioners a comprehensive guide of how to evaluate and revise performance measurement systems.

    The thesis is concluded with the results from several empirical investigations in which the usefulness of the developed method is validated.

    Keywords: Performance measurement, Performance measurement systems, Productivity, Evaluation

  • 4.
    Tangen, Stefan
    KTH, School of Industrial Engineering and Management (ITM), Production Engineering.
    Improving the performance of a performance measure2005In: Measuring Business Excellence, ISSN 1368-3047, E-ISSN 1758-8057, Vol. 9, no 2, p. 4-11Article, review/survey (Refereed)
    Abstract [en]

    Purpose - The purpose of this paper is to discuss how to design an individual performance measure, which usually means the measurement practitioner must deal with many requirements other than the ones that can be found when designing a complete performance measurement system. Design/methodology/approach - Different requirements suggested in the performance measurement literature from the past 20 years have been sorted out in order to structure the different tasks to conduct when designing a measure. Findings - Explains how to form or select a formula that fulfils the purpose of a measure. Defines 15 parameters that fully specify a measure. Clarifies positive and negative measure properties. Practical implications - Measurement regimes are often built without a clear understanding of what is being measured. The article includes several practical tools that can be used when designing a performance measure. Originality/value - Discusses the question "how to measure?", while most of past research in the field has been aimed at solving "what to measure?".

  • 5.
    Tangen, Stefan
    KTH, Superseded Departments, Production Engineering.
    Performance measurement: From philosophy to practice2004In: International Journal of Productivity and Performance Management, ISSN 1741-0401, E-ISSN 1758-6658, Vol. 53, no 8, p. 726-737Article in journal (Refereed)
    Abstract [en]

    Even though remarkable progress has been made over recent years in the design of performance measurement frameworks and systems, many companies are still primarily relying on traditional financial performance measures. This paper presents an overview of the more common, more modern approaches to performance measurement and attempts to identify whether they have in fact addressed the limitations of traditional ways of measuring performance. The paper suggests that the modern frameworks have indeed addressed the underlying conceptual issues, but have rarely addressed the practicalities of measurement in ways that render them meaningful to practitioners. What is needed is further work to explore how these conceptual frameworks can be translated and tailored to fulfil the unique measurement needs of a specific company, especially at the operational level.

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