Abstract
The present chapter discusses a core problem of quality management for organizations: establishing and maintaining a performance measurement system. Flowing from the mission and strategic planning of one organization, a performance measurement system is supposed to include the data to collect, analyze, report and, finally, use to make sound business decisions.
The remainder of this chapter is divided into eight sections. Sections 5.1 and 5.2 present the basic characteristics of an integrated performance measurement system. Section 5.3 discusses some popular approaches to develop performance measurement systems: the Balanced Scorecard, the Critical Few, the Performance Dashboards, and the EFQM model. Description is supported by the use of practical examples. Sections 5.4, 5.5 and 5.6 discuss how to develop/synthesise indicators and maintain an effective performance measurement system. Sections 5.7 and 5.8 deal with the possible misuse of indicators and their impact on organizations.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
AECD. (1997). Rewarding progress towards goals: Highlights of Alberta’s performance envelope funding. Edmonton: Advanced Education and Career Development.
AECD. (1999). 1998/99 Annual Report. Edmonton: Advanced Education and Career Development.
Akao, V. (1988). Quality function deployment. Cambridge, MA: Productivity Press.
APQI (Associazione Premio Qualità Italia). (2018). Migliorare le organizzazioni pubbliche attraverso l’autovalutazione. Retrieved September 2018, from http://www.apqi.it/media/1128/caf_2013_italiano.pdf.
Atkinson, A. (1997). Linking performance measurement to strategy. Journal of Strategic Performance Measurement, 1(4), 5.
Auditor General of Canada and the Commissioner of the Environment and Sustainable Development. (2017). Developing performance measures for sustainable development strategies. Retrieved September 2018, from http://www.oag-bvg.gc.ca/internet/English/meth_gde_e_23715.html.
Barnetson, B., & Cutright, M. (2000). Performance indicators as conceptual technologies. Higher Education, 40, 277–292.
Bourne, M. C., & Bourne, P. (2011). Handbook of corporate performance management. Chichester: Wiley.
Brown, M. G. (1996). Keeping score: Using the right metrics to drive world-class performance. New York: Quality Resources, CRC Press.
DISPEA. (2004–2005). Dipartimento di Sistemi di produzione ed economia dell’Azienda, Project: “Il nuovo Call Center del Comune di Torino: monitoraggio della qualità della comunicazione offerta ai cittadini” (in alliance with AICQ and Comune di Torino).
DISPEA. (2005). Dipartimento di Sistemi di produzione ed economia dell’Azienda, Project: “Valutazione della qualità nei servizi SO (Service Operations)” (in alliance with RAI).
Eccles, R. (1991). The performance measurement manifesto. Harvard Business Review, 69(1), 131–137.
EFQM (European Foundation for Quality Management). (2013). Retrieved September 2018, from www.efqm.org.
Flapper, S. D. P., Fortuin, L., & Stoop, P. P. M. (1996). Toward consistent performance measurement systems. International Journal of Operations and Production Management, 16(7), 27–37.
Franceschini, F. (2001). Dai Prodotti ai Servizi. Le nuove frontiere per la misura della qualità. Torino: UTET Libreria.
Franceschini, F. (2002). Advanced quality function deployment. Boca Raton, FL: St. Lucie Press/CRC Press LLC.
Franceschini, F., Galetto, M., & Maisano, D. (2005). A short survey on air quality indicators: Properties, use, and (mis)use. Management of Environmental Quality: An International Journal, 16(5), 490–504.
Franceschini, F., Galetto, M., & Maisano, D. (2007). Management by measurement: Designing key indicators and performance measurement systems. Berlin: Springer Science & Business Media.
Franceschini, F., & Mastrogiacomo, L. (2018). Service gap deployment: A framework to link quality gaps to service activities. International Journal of Services and Operations Management, 29(1), 85–99.
Franceschini, F., & Romano, D. (1999). Control chart for linguistic variables: A method based on the use of linguistic quantifiers. International Journal of Production Research, 37(16), 3791–3801.
Hauser, J., & Katz, G. (1998). Metrics: You are what you measure! European Management Journal, 16(5), 517–528.
Houghton College. (2004). Dashboard indicators: The top mission-critical indicators for Houghton College. Retrieved September 2018, from http://campus.houghton.edu/.
Juran, J. M. (2016). Quality control handbook (7th ed.). New York: McGraw-Hill.
Kaplan, R. S., & Norton, D. (1992). The balanced scorecard-measures that drive performance. Harvard Business Review, January–February, 71–79.
Kaplan, R. S., & Norton, D. P. (2008). The execution premium. Linking strategy to operations for competitive advantage. Boston: Harvard Business School.
Kells, H. (1992). Self-regulation in higher education: A multinational perspective on collaborative systems of quality assurance and control. London: Jessica-Kingsley.
Lohman, C., Fortuin, L., & Wouters, M. (2004). Designing a performance measurement system: A case study. European Journal of Operational Research, 156, 267–286.
Mintzberg, H. (1994). The rise and fall of strategic planning. New York: The Free Press.
Mintzberg, H. (1996). Managing government, governing management. Harvard Business Review, May–June, 75–83.
Neely, A. (Ed.). (2002). Business performance measurement: Theory and practice. Cambridge: Cambridge University Press.
Neely, A., Richards, H., Mills, J., Platts, K., & Bourneal, M. (1997). Designing performance measures: A structured approach. International Journal of Operations and Production Management, 17(11), 1131–1152.
Nemhauser, G. L., & Wolsey, L. A. (1988). Integer and combinatorial optimization. New York: Wiley.
Newcomer, K. (Ed.). (1997). Using performance measurement to improve public and nonprofit programs, New directions for evaluation (Vol. 75). San Francisco: Jossey-Bass.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. The Journal of Marketing, 49, 41–50.
Parker, R. G., & Rardin, R. L. (1988). Discrete optimization. San Diego: Academic Press.
Patton, M. Q. (1997). Utilization-focused evaluation: The new century text. Thousand Oaks, CA: Sage.
Perrin, B. (1998). Effective use and misuse of performance measurement. American Journal of Evaluation, 19(3), 367–379.
Polster, C., & Newson, J. (1998). Don’t count your blessing: The social accomplishments of performance indicators’. In J. Currie & J. Newson (Eds.), Universities and globalization: Critical perspective (pp. 173–182). Thousand Oaks, CA: Sage.
Porter, T. M. (1995). Trust in numbers: The pursuit of objectivity in sciences and public life. Princeton, NJ: Princeton University Press.
Power, M. (1996). Making things auditable. Accounting, Organizations and Society, 21(2-3), 289–315.
Schmenner, R. W., & Vollmann, T. E. (1994). Performance measures: Gaps, false alarms and the usual suspects. International Journal of Operations and Production Management, 14(12), 58–69.
Thomson, J., & Varley, S. (1997). Developing a balanced scorecard at AT&T. Journal of Strategic Performance Measurement, 1(4), 14.
Thorburn, W. M. (1918). The myth of Occam’s razor. Mind, 27, 345–353.
U.S. Department of Energy. (1996a). Guidelines for performance measurement (DOE G 120.1-5). Retrieved September 2018, from http://www.orau.gov.
U.S. Department of Energy. (1996b). Critical few performance measures-definitions and methodology. Office of Environmental Management (DOE/EM).
U.S. Department of Energy – PBM SIG (Performance-Based Management Special Interest Group). (2012). Performance-based management handbook of techniques and tools–How to measure performance (revised). Retrieved September 2018, from http://www.orau.gov/pbm.
U.S. Department of Energy/Nevada Operations – DOE/NV. (1994, June). Performance measurement process guidance document. DOE/NV Family Quality Forum.
U.S. Department of the Treasury. (1994). Criteria for developing performance measurement systems in the public sector.
U.S. General Accounting Office. (2012). Performance measurement and evaluation: Definitions and relationships (revised). Retrieved September 2018, from http://www.gao.gov/special.pubs/gg98026.pdf.
University of California. (2017). SMART goals: A how to guide. Retrieved September 2018, from https://www.ucop.edu.
Winston, J. (1993). Performance indicators: Do they perform? Evaluation News and Comment, 2(3), 22–29.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Franceschini, F., Galetto, M., Maisano, D. (2019). Designing a Performance Measurement System. In: Designing Performance Measurement Systems. Management for Professionals. Springer, Cham. https://doi.org/10.1007/978-3-030-01192-5_5
Download citation
DOI: https://doi.org/10.1007/978-3-030-01192-5_5
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-01191-8
Online ISBN: 978-3-030-01192-5
eBook Packages: Business and ManagementBusiness and Management (R0)