How Performance Measurement Underpins Business Strategy (2013)
Performance Measurement Systems Dissertation – An extensive examination of the literature shows that there is a consensus view that the key role of performance measurement is to support the implementation and evaluation of strategy in organizations. The view is also widespread that most organizations have difficulty implementing their strategies. The purpose of this study was to determine how effectively performance measurement supported the strategy of a small subsidiary bank.
To do so the study ascertained the design and uses of performance measurement at the bank and employees perception of those measures against the bank’s strategy and best practices as detailed in the literature. A qualitative research approach was undertaken principally by conducting ten in-depth interviews with employees at various levels of the bank. Additionally a range of documents at the bank pertaining to strategy, performance measurement and related matters were studied. A limited amount of participant observation was also done.
The results reveal that the bank’s performance measurement did not effectively support its strategy. Performance measurement was hampered by poor measurement design and use, an absence of the right information technology, the attitude of the parent company, a lack of top management commitment and the use of an inappropriate management style. This MBA dissertation proposes some potential solutions. In terms of the practical implications of the study, when pursuing their strategies, organizations must look for congruence between their strategies, how they use performance measurement, the technology enabling measurement and their managerial styles.
The research was conducted using only one organization as a case study. It would have been helpful to look at several banks to see the differences in their strategic outcomes and their use of performance measurement. Further, this study was cross-sectional but a longitudinal study could have looked at the effect of changes in performance measurement over time. The main research questions are as follow:
- How are performance measures designed and used?
- How are the performance measures perceived in the bank?
- What are the reasons for the design and use of the performance measures and for the perceptions of them?
- 19,000 words – 90 pages in length
- Excellent use of literature
- Good analysis of subject area
- Well written throughout
- Includes interview questions
- Ideal for MBA students
1 – Introduction
Purpose of Study
Research Questions and Objectives
2 – Literature Review
The Link between Strategy and Performance Measurement
The Need for Balance and the Use of Performance Measurement Systems/Frameworks
Leading Performance Measurement Systems
Characteristics and Design of Performance Measures
Measurement Features and Design
Technology and Performance Measurement
Performance Measures for a Bank
Support for Performance Measurement
The Challenge of Measurement Implementation
The importance of top management support, structure and communication
The Unique Position of Subsidiaries
3 – Research Methodology
Documents and Observation
The Quality of the Research
4 – Findings
Internal Process Measures
Learning and Growth Measures
Technology and Processes
Parent Company Decisions
Top Management Commitment and Style
5 – Conclusions
Improper Design and Use of Performance Measurement
Performance Measurement and Individual Performance Evaluation
Technology and Automation not used as an enabler of Performance Measurement
Management Approach to Performance Measurement
Parent company requirements
Top Management Commitment and Style
Recommendations for Future Action
Design and Use
Limitations of the Study and Future Research