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Managing change in performance measures within a manufacturing context
Mälardalen University, School of Innovation, Design and Engineering. (IPR (Produktrealisering))
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 [en]
performance measures
National Category
Engineering and Technology
Research subject
Innovation and Design
Identifiers
URN: urn:nbn:se:mdh:diva-18691ISBN: 978-91-7485-107-6 (print)OAI: oai:DiVA.org:mdh-18691DiVA, id: diva2:613510
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
List of papers
1. Explaining the evolution of performance measures – A dual case-study approach
Open this publication in new window or tab >>Explaining the evolution of performance measures – A dual case-study approach
2013 (English)In: Journal of Engineering, Project, and Production Management, ISSN 2221-6529, E-ISSN 2223-8379Article in journal (Other academic) Published
Abstract [en]

Few empirical studies have examined how performance measures change in practice and the driving forces behind this change. The existing body of literature has taken a prescriptive approach to how managers and organisations ought to manage change in performance measures without any concern for studying the phenomenon itself and thus a theoretical gap exists. With this gap in mind, the purpose of this paper is to outline how and why the performance measures have changed at two case companies over the time period 2008-2011. In order to fulfil the purpose of this paper two case studies at two different case companies have been conducted. The choice of data collection method is justified by the ambition to attain an in-depth and holistic understanding of the phenomenon. For each case, the data collection was based on four components: an interview study, analysis of archived data, documentation and direct observations. In total, 28 interviews were conducted, 14 at each case company. The empirical findings exhibit that the performance measures are exposed to continuous and considerable change from several perspectives. The measurement scopes at both case companies are steadily expanding, the individual performance measures are constantly replaced and their characteristics are continuously altered. An array of change triggers has been identified in the empirical findings. In contrast to what is advocated in literature, the findings illustrate that the most frequent reason for change is the will to improve the performance measures, the measurement process and the overall performance rather than changing internal and external environments. There are several challenges that need to be addressed in the future research agenda.

Keyword
performance measures
National Category
Engineering and Technology
Research subject
Innovation and Design
Identifiers
urn:nbn:se:mdh:diva-18688 (URN)
Projects
xpres
Funder
XPRES - Initiative for excellence in production research
Available from: 2013-03-28 Created: 2013-03-28 Last updated: 2017-12-06Bibliographically approved
2. The evolution of a performance measurement system: an empirical investigation of a manufacturing organisation
Open this publication in new window or tab >>The evolution of a performance measurement system: an empirical investigation of a manufacturing organisation
2012 (English)Conference paper, Published paper (Refereed)
National Category
Engineering and Technology
Research subject
Innovation and Design
Identifiers
urn:nbn:se:mdh:diva-17363 (URN)
Conference
PMA 2012 Conference, Performance management: From strategy to delivery, 11-13 July 2012, Fitzwilliam College, University of Cambridge, UK
Funder
XPRES - Initiative for excellence in production research
Available from: 2012-12-20 Created: 2012-12-20 Last updated: 2013-12-03Bibliographically approved
3. Managing change in performance measures – An inter-company case study approach
Open this publication in new window or tab >>Managing change in performance measures – An inter-company case study approach
2012 (English)In: International Journal of Business Science and Applied Management, ISSN 1753-0296, E-ISSN 1753-0296, Vol. 7, no 2, p. 53-66Article 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.

Keyword
Performance measurement
National Category
Engineering and Technology
Research subject
Innovation and Design
Identifiers
urn:nbn:se:mdh:diva-18689 (URN)2-s2.0-84875905328 (Scopus ID)
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
4. Performance measure review practice in heavy automotive industry – a dual perspective case study
Open this publication in new window or tab >>Performance measure review practice in heavy automotive industry – a dual perspective case study
2013 (English)Conference paper, Published paper (Refereed)
Abstract [en]

Within the field of performance measurement and management (PMM) it is well-established that more research is needed into understanding how change is managed in performance measures (PM) (Eccles, 1991; Ghalayini and Noble, 1996; Neely, 1999; Kennerley and Neely, 2002; Kennerley and Neely, 2003; Melnyk et al., 2004; Neely 2005; Bourne, 2008). Even though academics have risen to the challenge by proposing several performance measurement frameworks (Bititci et al., 2000; Bourne et al., 2000; Najmi et al., 2005; Kennerley et al., 2003) two shortcomings prevail in the contemporary thereotical base. Firstly, little research has focused on the applied practices of organisations in the industry for managing change. Secondly, the research available today takes on a management perspective rather than an organisation-wide equivalent. This has been acknowledged by Bourne (2008) that underlines the need for more collaborative research into understanding how organisations manage change in PM in practice. With these deficiencies in mind, the purpose of this paper is firstly to outline the PM review practice of an organisation within the heavy automotive industry from two perspectives, top-management and operational, and secondly to contrast the practice to theory. In order to do this, two case studies at one case company have been executed, one from each perspective. The heavy automotive industry, defined in this paper as the industry for buses, trucks, and construction equipment, is both interesting and appropriate to study in relation to the outlined phenomenon.

Keyword
performance measures
National Category
Engineering and Technology
Research subject
Innovation and Design
Identifiers
urn:nbn:se:mdh:diva-18687 (URN)
Conference
7th Conference of Performance Measurement and Management Control
Available from: 2013-03-28 Created: 2013-03-28 Last updated: 2013-12-03Bibliographically approved
5. Managing change in performance measures: a case study on practice and challenges
Open this publication in new window or tab >>Managing change in performance measures: a case study on practice and challenges
2012 (English)In: Proceedings of the 4th World Conference P&OM / 19th EurOMA Conference, 2012Conference paper, Published paper (Refereed)
Abstract [en]

The purpose of this paper is to outline how a large manufacturing organisation handles change in its performance measurement system (PMS) and the challenges associated with it. The empirics presented have been collected through a case study. The findings display that the organisation deploys two processes for handling change, one with the starting point in the business plan and the other within an operational development program. Several challenges are highlighted relating to the IT-system, culture and involvement. The paper concludes that even though the processes are theoretically sound, the scarcity of time and focus in practice derail their purposes.

The purpose of this paper is to outline how a large manufacturing organisation handles change in its performance measurement system (PMS) and the challenges associated with it. The empirics presented have been collected through a case study. The findings display that the organisation deploys two processes for handling change, one with the starting point in the business plan and the other within an operational development program. Several challenges are highlighted relating to the IT-system, culture and involvement. The paper concludes that even though the processes are theoretically sound, the scarcity of time and focus in practice derail their purposes.

Keyword
Performance measures, updating performance measures, performance measures in change
National Category
Engineering and Technology
Research subject
Innovation and Design
Identifiers
urn:nbn:se:mdh:diva-18684 (URN)9789491621000 (ISBN)
Conference
4th World Conference P&OM / 19th EurOMA Conference
Available from: 2013-04-10 Created: 2013-03-28 Last updated: 2013-04-29Bibliographically approved
6. Dynamic abilities in performance measurement system: a case study on practice and strategies
Open this publication in new window or tab >>Dynamic abilities in performance measurement system: a case study on practice and strategies
2011 (English)In: Book of abstracts, 18th International Annual EurOMA Conference, Exploring interfaces, 2011, p. 133-133Conference paper, Published paper (Refereed)
Abstract [en]

This paper analyse the key factors for creating a dynamic ability in the performance measurement system, in order to manage the operations/strategy interface. A case study was conducted at a heavy vehicle manufacturing site with three data collection components: analysis of archival data, direct observations and an interview study. The study details five factors that need to be fulfilled in order to realise dynamic abilities in a PMS: review process, IT system, management, culture and employee involvement. Moreover, in order to realise the factors in practice the PMS design and context need to be considered.

National Category
Engineering and Technology
Research subject
Innovation and Design
Identifiers
urn:nbn:se:mdh:diva-12311 (URN)978-1-902546-93-3 (ISBN)
Conference
18th International Annual EurOMA Conference Exploring interfaces, 3-6 July 2011, Cambridge, UK
Projects
xpres
Funder
XPRES - Initiative for excellence in production research
Available from: 2011-05-25 Created: 2011-05-25 Last updated: 2013-12-04Bibliographically approved

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Citation style
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