Performance Measurement

Performance Measurement Systems and Culture:

Lessons from Small-to-Medium Enterprise Organizations

Shelby DanksDistrict Continuous Improvement Facilitator

Hurst-Euless-Bedford Independent School [email protected] 

Dr. Guillermo Oyarce Associate Professor

Department of Library and Information [email protected] 940.565.3564

Dr. Jeff M. AllenProfessor and Director

Center for Knowledge SolutionsUniversity of North [email protected]: drjeffallen 940.565.4918 

Background Information

Integrative literature review to determine key attributes of effective performance measurement systems (PMS)

among small-to-medium enterprise (SME) organizations.

Purpose

…critical tools used for “fact-based decision making for setting and aligning organizational directions and resource use at the work unit, key process, departmental, and organizational levels”

The Baldrige Performance Excellence Program, 2011

Performance Measurement System (PMs)

Small-enterprise

500 or less employees (small)

Medium-enterprise

1,000 or less employees (medium)

small-to-medium enterprise organizations (SMEs)

1. What are the key attributes of effective performance measurement systems among small-to-medium enterprise organizations (SMEs)?

2. What is the relationship between the successful use or implementation of the performance measurement system and organizational culture?

Research Questions

Methods

Key Terms:

performance measurement systems culture

For all empirical journals published since 2000

Key Steps

121 results in English Language

ABI Inform, Eric PsychInfo via EBSCOhost

Key Terms:Broader search

multiple additional databases in business, economics, education, information and library science, political science, and psychology

Key Steps

262 additional results

40 articles systematically reviewed:

1) description of attributes of performance measurement systems in the small-to-medium enterprise companies; and

2) an analysis of the relationship between performance measurement systems and organizational culture.

After two more rounds…

A total of 19 articles were included as key material to review and address the two research questions.

Finally . . .

Source by Type and Sector

Findings

1. What are the key attributes of effective performance measurement systems among small-to-medium enterprise organizations (SMEs)?

2. What is the relationship between the successful use or implementation of the performance measurement system and organizational culture?

Research Questions

• What is measured?

• Who determines what is measured?

• How are data presented?

• How is analysis supported?

Attributes

• How is analysis supported?

Analysis Support

Need for measurement expertise among all levels of workforce so participants are informed when offered opportunities for input.

1. What are the key attributes of effective performance measurement systems among small-to-medium enterprise organizations (SMEs)?

2. What is the relationship between the successful use or implementation of the performance measurement system and organizational culture?

Research Questions

While the definition of “culture” varied among studies, one overarching theme emerged….

Culture

– that aggregate constructs of organizational typology are less critical to the successful implementation of the system than individual/cultural factors of perception of the use of the system.

Culture

Cultural Factor of Successful Implementation

1. Perception of intended audience2. Perception of policy design3. Perception of leadership

engagement

Culture

Key Questions:

1. How does the organization determine what measures will be included in the performance measurement system?

– Who is involved in the selection of these key measures?

– How does the organization incorporate the voice of each of its relevant stakeholder groups in measurement selection, use, and evaluation?

Implications

Key Questions:

2. How does the organization develop the capacity of its employees, specifically its leaders, in the current measurement models and tools, practices in the selection, use, and integration of key measures, and opportunities for engagement around the results of these measures?

Implications

Key Questions:

3. How does the organization support positive cultural factors that affect or are affected by the performance measurement system?

– How does the organization facilitate attention toward an engaging audience of the measures, positive perception of the design of policies of use of the PMS, and perception of committed leaders?

Implications

Key Questions:

4. How does the organization determine its readiness for and opportunities for improvement in the area of its system implementation?

Implications

• Replication;• Specific elements that impact the success

of the system;• Develop a comprehensive framework of

best practices; and• Investigate measurement systems (level

of readiness, implementation)• Previous have focused on case studies.

Future Studies

Shelby DanksDistrict Continuous Improvement FacilitatorHurst-Euless-Bedford Independent School [email protected] 

Dr. Guillermo Oyarce Associate Professor, Department of Library and Information [email protected] 940.565.3564

Dr. Jeff M. AllenProfessor and DirectorCenter for Knowledge SolutionsUniversity of North [email protected]: drjeffallen 940.565.4918