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Proposing a taxonomy for performance measurement systems' failures

Listed author(s):
  • VAN CAMP, Jelle
  • BRAET, Johan
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    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.

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    Paper provided by University of Antwerp, Faculty of Applied Economics in its series Working Papers with number 2013004.

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    Length: 52 pages
    Date of creation: Mar 2013
    Handle: RePEc:ant:wpaper:2013004
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    1. Hauser, John R. & Katz, Gerald M. & International Center for Research on the Management of Technology., 1998. "Metrics : you are what you measure!," Working papers 172-98, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    2. Kostoff, Ronald N. & Geisler, Elie, 2007. "The unintended consequences of metrics in technology evaluation," Journal of Informetrics, Elsevier, vol. 1(2), pages 103-114.
    3. Pawar, Kulwant S. & Driva, Helen, 1999. "Performance measurement for product design and development in a manufacturing environment," International Journal of Production Economics, Elsevier, vol. 60(1), pages 61-68, April.
    4. Suwignjo, P. & Bititci, U. S & Carrie, A. S, 2000. "Quantitative models for performance measurement system," International Journal of Production Economics, Elsevier, vol. 64(1-3), pages 231-241, March.
    5. V. Krishnan & Karl T. Ulrich, 2001. "Product Development Decisions: A Review of the Literature," Management Science, INFORMS, vol. 47(1), pages 1-21, January.
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    7. Nilsson, Fredrik & Kald, Magnus, 2002. "Recent Advances in Performance Management:: The Nordic Case," European Management Journal, Elsevier, vol. 20(3), pages 235-245, June.
    8. Wang, Juite & Hwang, W.-L., 2007. "A fuzzy set approach for R&D portfolio selection using a real options valuation model," Omega, Elsevier, vol. 35(3), pages 247-257, June.
    9. Verworn, Birgit & Herstatt, Cornelius, 1999. "Approaches to the "fuzzy front end" of innovation," Working Papers 2, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    10. Marc H. Meyer & Peter Tertzakian & James M. Utterback, 1997. "Metrics for Managing Research and Development in the Context of the Product Family," Management Science, INFORMS, vol. 43(1), pages 88-111, January.
    11. L. Wade, 1988. "Review," Public Choice, Springer, vol. 58(1), pages 99-100, July.
    12. Hauser, John & Katz, Gerald, 1998. "Metrics: you are what you measure!," European Management Journal, Elsevier, vol. 16(5), pages 517-528, October.
    13. Véronique Malleret & Annick Bourguignon & Hanne Norreklit, 2004. "The American balanced scorecard versus the French tableau de bord : the ideological dimension," Post-Print hal-00486648, HAL.
    14. Bititci, U. S. & Suwignjo, P. & Carrie, A. S., 2001. "Strategy management through quantitative modelling of performance measurement systems," International Journal of Production Economics, Elsevier, vol. 69(1), pages 15-22, January.
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