The main purpose of this study is to define important criteria to consider when selecting and implementing performance measures on a strategic, tactical and operational level. The thesis is built around the questions “What to measure” and “How to measure”.
Generally within the study the question of “what” concerns different frameworks and working procedures that can be used to determine what to measure, while the question of “how” concerns criteria to consider when implementing performance measures, such as how to design measure formulas and targets, how to communicate measures, etc.
The study has been conducted as a qualitative study, where the empirical data has been collected through interviews and by using information material from the case company. The purpose of the case study was to test the theoretical framework. The studied case company was Sandvik Process Systems, a product area within the Sandvik group. The case study was complemented by two minor comparative studies of companies also belonging to the Sandvik group. In total the study comprised interviews with 15 persons within different organizational levels.
Companies must consider factors such as the size and complexity of the organization, how the business is controlled and managed as well as the structure and control of an already existing PMS. For large organizations, already possessing a rather unstructured PMS, the best approach could be to look upon the development as a constantly on-going activity in the spirit of continuous improvements, rather than a complex project running over a limited time. A vital success factor is also to communicate the intentions to the whole organization at an early stage. If the whole organization is aware of the intention and the purpose this will facilitate the process of developing and implementing a successful PMS.
Source: University of Gävle
Author: Rolfsdotter Karlsson, Annika