Implementing Performance Measurement Systems: a Literature Review

9421 Words38 Pages
Int. J. Business Performance Management, Vol. 5, No. 1, 2003


Implementing performance measurement systems: a literature review Mike Bourne* and Andy Neely
Centre for Business Performance, School of Management, Cranfield University, Cranfield, MK43 0AL, UK E-mail: *Corresponding author

John Mills and Ken Platts
Centre for Strategy and Performance, Institute for Manufacturing, University of Cambridge, Mill Lane, Cambridge, CB2 1RX, UK
Abstract: Currently, there is a great interest in performance measurement with many companies attempting to implement the balanced scorecard. However, there is also evidence that many of these implementations are not successful. This paper reviews the different performance
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He has recently co-authored a Strategy and Performance trilogy, published by Cambridge University Press, 2002, which, aimed primarily at industrial managers, describes practical approaches to developing strategy and measuring performance.



Judging by attendance at business conferences and writing on the subject [1], performance measurement has become a popular topic for both industrialists and academics, reaching the stage of being identifiable as a specific subset in the operations management literature [2]. Recent research by Hackett Group suggests that the balanced scorecard [3] is becoming a widely used performance measurement tool in the USA. However, despite this popularity, there is evidence that not all performance measurement initiatives are successful [4–7]. Other researchers have claimed that 70% of attempts to implement performance measurement systems fail [8]. Therefore, the objective of this paper is to contribute to a better understanding of the factors which influence the success or failure of performance measurement initiatives through reviewing the literature. The paper starts by considering the definitions used in performance measurement and, as the field is still rapidly evolving, the current meaning of the terms. The paper then goes on to briefly trace the background to the development of performance measurement and the main performance measurement frameworks. The
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