Describes the development and testing of a structured methodology for the design of performance measurement systems. Frameworks, such as the balanced scorecard and the performance prism, have been proposed, but until recently little attention has been devoted to the question of how these frameworks can be populated, i.e. how managers can decide specifically which measures to adopt. Following a wide ranging review of the performance measurement literature, a framework identifying the desirable characteristics of a performance measurement system design process is developed. This framework provided guidelines which were subsequently used to inform the development of a process‐based approach to performance measurement system design. The process was enhanced and refined during application in three action research projects, involving major UK automotive and aerospace companies. The revised process was then formally documented and tested through six further industrial applications. Finally the process was written up in the form of a workbook and made publicly available.

Performance measurement can be defined as the process of quantifying the efficiency and effectiveness of action.q A performance measure can be defined as a metric used to quantify the efficiency and/or effectiveness of an action[3].

This paper seeks to extend existing manufacturing system concepts and develop new structured knowledge about international manufacturing networks by analysing the networks, classifying the configurations and identifying the capabilities. The design and operation of international manufacturing networks is an increasingly important issue for transnational corporations faced with rapid changes in global market opportunity, competition and new managerial mechanisms. Four international manufacturing networks in mechanical and process industries are analysed and a number of conclusions drawn: first, a novel configuration map is proposed; second, key strategic capability parameters are identified; third, networking trends and their implications for configuration are discussed. Finally, the paper explores strengths and weaknesses of the particular methodology adopted in this research.

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