Understanding the Interrelationships Between Organizational Performance Measurement System Implementation Variables

Abstract

Performance measurement (PM) systems are increasingly being adopted to manage and improve organizations’ effectiveness. However, a review of the research shows that there are a significant number of unsuccessful PM systems with indications of challenges arising during the implementation phase. A study involving subject-area experts was conducted and the analytic network process (ANP), for evaluating the multi-criteria decision model, was used to quantify the effects of the dynamic interrelationships among the model variables as well as the systemic effect of the factors on PM system implementation success (IS). The results show that Leadership Support and the Implementation Approach are the most important factors for successful implementation of PM systems. Meanwhile, factors related to training, participation, and an effective information technology system help users of PM understand the measures and identify their perceived benefits, thereby contributing to performance goals and objectives. This study provides a comprehensive and rigorous analysis by employing an expert study to evaluate and quantify the effects of model variables and their interrelationships on PM system implementation success using the ANP methodology. Managers and researchers can use the prioritization of the factors and insights regarding key interrelationships to develop more specific strategies and better manage resources of the implementation effort.

Keywords:

• Performance measurement systems
• analytic network process
• success
• implementation process
• expert study

EMJ Focus Areas:

• Organizational & Performance Assessment
• strategic Management

Disclosure Statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

O. Oladimeji

O. Oladimeji is an assistant professor in the Engineering department at the College of Charleston. She received her bachelor’s degree in computer engineering from Covenant University, Nigeria. She completed her master’s degree in computer network technology at Manchester Metropolitan University and a master’s degree Interdisciplinary Studies from Texas Tech University. She also completed her doctoral degree in Systems and Engineering Management at Texas Tech University. Her interest is in Performance Measurement and System Dynamics. She is a member of American Society for Engineering Management and the Institute of Industrial and Systems Engineers.

H. Heather Keathley-Herring

H. Heather Keathley-Herring is an Associate Professor in the Industrial Engineering & Management Systems Department at the University of Central Florida. She received her bachelor’s degree in Systems Engineering from the University of Arkansas at Little Rock and her master’s degree in Industrial and Systems Engineering from Virginia Tech. She then completed a dual doctoral degree with the Grado Department of Industrial and Systems Engineering at Virginia Tech and the DEML department of the RMA in 2016. Her research is in Management Systems Engineering with a focus on organizational change and transformation. She is a member of Institute of Industrial and Systems Engineers and the American Society for Engineering Management

J. A. Cross

J. A. Cross is an Assistant Dean of Recruitment and Assessment at the Edward E. Whitacre Jr. College of Engineering, Texas Tech University. She is also an Associate Professor in the Department of Industrial, Manufacturing & Systems Engineering at Texas Tech. She received her BS in Industrial Engineering from the University of Arkansas and her MS and PhD in Industrial and Systems Engineering from the Grado Department of Industrial and Systems Engineering at Virginia Tech, where she also served as a Graduate Research Assistant and a Postdoctoral Associate in the Enterprise Engineering Research Lab. Her research interests are in organizational assessment/performance measurement, teams, and performance improvement methodologies. She is a member of Institute of Industrial and Systems Engineers/Society for Engineering and Management Systems, Alpha Pi Mu and ASEE.