Performance measurement and management: a system of systems perspective

Abstract

Despite changes in tools and practices, the conceptual foundations of performance measurement and management (PMM) are still predominantly rooted in control systems research. While PMM approaches have delivered significant organizational benefits, including creating alignment, supporting monitoring and control, and enabling prediction and optimization of resource allocation, this paper argues that this paradigm is not capable of responding to increasingly complex and highly uncertain organizational environments. Drawing on ideas emerging in the literature on systems engineering and complex systems, we propose a novel perspective that considers PMM from a 'system of systems' (SoS) point of view, whose essential characteristics are autonomy, belonging, connectivity, diversity, and emergence. After identifying the assumptions underpinning existing PMM approaches, we outline a SoS-based paradigm to PMM and conclude by articulating the main implications for the practice of PMM and setting out a research agenda.

A cross-national comparison of public project benefits management practices – the effectiveness of benefits management frameworks in application

“…Our reflection is projects are systems operating in wider systems, and that system of systems approach is important (Bourne et al 2018). From this perspective, learning occurs at different levels in the system.…”

Making performance management relevant in complex and inter-institutional contexts: using outcomes as performance attractors

“…This alternative PMM logic diverges considerably from traditional control-oriented approaches deriving from management control theory and cybernetics, and can be distinguished as Figure 1 shows in both the formulation and implementation of PMM systems. We contribute to a growing body of critical PMM theory in the public and private sectors which has explored alternatives to standard control-oriented PMM modalities (Moynihan et al 2011;Melynk et al 2014;Jakobsen et al 2017;Bourne et al 2018;Rajala et al 2019;French et al 2020). Specifically, performance attraction redirects focus from the technocratic elements of PMM system design to the dialogic and boundary-crossing usage of performance information called for by Rajala et al (2019), and provides a mechanism through which architects of outcomes frameworks might cultivate the stewarding behaviours seen as necessary by French et al (2020) to tackle complex goals in interinstitutional settings.…”

Managing innovation performance: Results from an industry‐spanning explorative study on R&D key measures

“…The findings of our study also contribute to the discussion on characteristics of successful measurement systems (Brown & Svenson, 1998; Chiesa et al, 2007). Depending on the objectives of measurement, characteristics of the respective system employ different design choices that can also lead to organizational benefits like resource allocation optimization (Bourne, Franco‐Santos, Micheli, & Pavlov, 2018; Chiesa et al, 2007). In addition, these can contribute to employees feeling more connected to firm goals and performance measurement necessities (Englund & Ludvigsen, 2015).…”