Proposing a taxonomy for performance measurement systems' failures
Failures of business performance measurement (BPM) systems are dispersedly discussed in the abundance of literature written. Due to the multi-disciplinarity of stakeholders and researchers involved, the basis of literature is expanding but not converging. The added value of this paper is twofold. Firstly, the nomenclature used in the BPM field is aligned and represented visually. Secondly, this paper compiles and discusses 36 identified failures of performance measurement systems (PMS), thereby proposing an easy taxonomy. The classification draws upon three layers: metric level, framework level and management level, with respectively 13, 9 and 14 failures. This paper holds information for both academics and business people. The former can employ the literature overview for further referencing and can use it as a guideline to construct new BPM frameworks or systems, or adjust old ones. By reading this paper, people from the field create an awareness of risks involved when implementing a PMS. Alternatively, they can use it as a checklist in their current situation or tool for easy communication. Further research is necessary, both for tackling the problems listed and for looking into the correlation of the presented failures.
|Date of creation:||Mar 2013|
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