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Managing change in performance measures – An inter-company case study approach
Volvo Construction Equipment, Technology, Department of Finance and Business Control. (Produktrealisering)
Mälardalen University, School of Innovation, Design and Engineering. (Produktrealisering)ORCID iD: 0000-0002-3530-2266
2012 (English)In: International Journal of Business Science and Applied Management, ISSN 1753-0296, E-ISSN 1753-0296, Vol. 7, no 2, 53-66 p.Article in journal (Refereed) Published
Abstract [en]

The field of performance measurement and management (PMM) is well filled with frameworks, models and guidelines addressing what to measure and how to design a performance measurement system (PMS). However, what has been less examined so far is how to ensure that PM evolve in tandem with their environments. Further, the few approaches available today are prescriptive and outlines how or what practitioners should do in order to manage change in their PM. Thus, a gap exists in understanding how organisations manage change in their PM in practice. Thus, the purpose of this paper is to outline and compare the approaches of three case companies for managing PM change. In order to fulfil the purpose of the paper, the data presented has been collected through the deployment of case studies. The choice of case studies as means for data collection stems from the possibility of an in-depth and holistic examination of the formulated phenomenon. All three case companies belong to the same company-group that operates within the transportation industry. The industrial footprint of the company is global with operations and sales spread out over the world. The findings suggest that all three companies have processes in place for managing change in PM. However, the approaches differ in design and context. Even though the case companies had different approaches in place to manage change in PM, they shared several commonalities. Commonalities were shared in the way of execution, process input and challenges in IT and culture. Furthermore, employee involvement seemed to be the biggest challenge for all three companies. The findings put forward in this paper are limited as they are confined to three companies from the same company-group. More studies, both from within and outside the company-group, are needed in order to establish a solid base of empirical data for generalisation. However, this paper makes a contribution both through describing how three companies manage PM change and through elaborating on the underlying factors affecting functionality.

Place, publisher, year, edition, pages
2012. Vol. 7, no 2, 53-66 p.
Keyword [en]
Performance measurement
National Category
Engineering and Technology
Research subject
Innovation and Design
Identifiers
URN: urn:nbn:se:mdh:diva-18689Scopus ID: 2-s2.0-84875905328OAI: oai:DiVA.org:mdh-18689DiVA: diva2:613496
Projects
xpres
Funder
XPRES - Initiative for excellence in production research
Available from: 2013-04-10 Created: 2013-03-28 Last updated: 2017-12-06Bibliographically approved
In thesis
1. Managing change in performance measures within a manufacturing context
Open this publication in new window or tab >>Managing change in performance measures within a manufacturing context
2013 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Even though the literature available within the field of performance measurement and management (PMM) is extensive, a gap exists regarding how change is managed in performance measures (PM).  This gap is corroborated by the empirical data underlining that only a few organisations have mechanisms in place for managing PM change. The need to manage change in PM arises from the consensus that performance measurement systems (PMS) should reflect the strategy and direct environments of the company. As both strategies and environments are dynamic in nature the PMS ought to possess the capability to change. The paradox of combining dynamic strategies and environments with static PMS has created problems for companies as the competitive conditions change over time. With this background in mind, the purpose of this thesis is to contribute to the existing body of knowledge regarding how to manage change in performance measures. The contribution from this research will stem from analysis of six empirical studies and the results will be concluded in a set of guidelines regarding how to manage change in PM in practice.

This thesis has adopted a systems perspective and takes a qualitative, case-study based approach. In total six case studies and three literature studies have been conducted. The case studies have been conducted on three different continents and have focused on the deployed ways for managing change in PM and how the PM have evolved over time. The first literature study focused on the general literature within the field of PMM, the second literature study focused on the literature revolving around keeping PM updated and relevant over time whilst the third and concluding literature study focused on further expanding the theoretical base on how to manage change in PM and how PM evolve and change after their implementation. This thesis concludes that extensive PM change is necessary over time in order to establish and maintain appropriate PM, continuously improve the measurement process and boost performance. Further, in converse to the various approaches suggested in literature, all six approaches identified in the case studies are processes. Furthermore, each PM change process differs from another as highlighted in the empirical findings chapter.

Finally, 11 factors have been identified from the theoretical and empirical findings that affect the ability to manage change in PM: level of process documentation, process ownership, employee involvement and alignment (as an embedded part of the PM change process design), communication, culture, role of top-management, IT-infrastructure capabilities, resources available for facilitation, PM ownership and education. Finally, eight guidelines have been developed addressing how to manage change in performance measures.

Place, publisher, year, edition, pages
Västerås: Mälardalen University, 2013
Series
Mälardalen University Press Dissertations, ISSN 1651-4238 ; 141
Keyword
performance measures
National Category
Engineering and Technology
Research subject
Innovation and Design
Identifiers
urn:nbn:se:mdh:diva-18691 (URN)978-91-7485-107-6 (ISBN)
Public defence
2013-06-14, Filen, Smedjegatan 37, Eskilstuna, 10:00 (English)
Opponent
Supervisors
Funder
XPRES - Initiative for excellence in production research
Available from: 2013-04-29 Created: 2013-03-28 Last updated: 2013-12-06Bibliographically approved

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