The Role of Performance Measurement Systems in Strategy Formulation Processes

Influence of business performance measurement systems and corporate sustainability concept to overal business performance: “save the planet and keep your performance”

“…Cost management is one of the most important issue of company performance and company fi nancial management (Novák & Popesko, 2014). Traditional business performance measures have mostly fi nancial character which measures the rate of return on investment, cash fl ow and profi t margins (Gunasekaran & Kobu, 2007). These measures have been criticized due to their reduced ability of using for comprehensive performance measurement.…”

“…Performance measurement system defi ne Gimbert, Bisbe and Mendoza (2010) as a set of fi nancial and non-fi nancial measures to support enterprise decision-making by collecting, processing and analyzing quantifi ed information regarding its performance and presented in a brief review. A subset is a Strategic Performance Measurement System (SPMS), whose typical feature is the design of these systems to support decision making by managers through fi nancial and also non-fi nancial indicators covering different perspectives and which in combination enables to transform strategy into a comprehensive set of performance measures (Chenhall, 2005).…”

“…The examination of the measuring corporate performance issues is dedicated to many authors from different points of view: the relationship of the strategy and strategic orientation to the business performance (Morgan & Strong, 2003); the view of a strategic measurement performance system through strategic agenda and decision-making as a result of the process of (re)formulating strategy (Bisbe & Malagueño, 2012); the effect of strategic measurement performance system on the important attributes of the strategy formulating process (Gimbert et al, 2010); the effect of strategic performance measurement system of human resources and corporate results (Bento & White, 2014); the use of the process performance measurement (Tuček et al, 2013); the relations among customer satisfaction, customer loyalty and fi nancial performance of a commercial bank (Belás & Gabčová, 2016); the methodology for prediction and detection of the ways of solving demanding situations in managerial work, with obvious implications in performance of managers and in effi ciency of business performance management (Lajčin, Frankovský, & Štefko, 2012); the model of acquisition activity in fi nancial sector (Korauš et al, 2015); performance management and public corporate governance with regard to relationships with both external (stakeholders) and internal (politicians and management) actors (Romolini et al, 2015). Many other empirical studies realized around the world in recent years have also confi rmed the relationship between strategic planning and business performance (Rudd et al, 2008).…”

Strategic Management of Business Performance Based on Innovations and Information Support in Specific Conditions of Slovakia

“…Similar research conducted in Spain also focused on the relation between the use of SPMS and the quality of the strategic planning process. Empirical data were obtained from surveys of 349 medium and large Spanish companies and their evaluation confirmed the positive relationship between the use of and dependence of SPMS and quality of strategic plans and decisions of the company (Gimbert, Bisbe & Mendoza, 2010). Most authors in their scientific studies has indicated that SPMS can help businesses to define and achieve its strategic objectives, align the behavior and attitudes, and may ultimately have a positive impact on business performance.…”

Strategic Risk Management

“…In the strategic management literature, planning has been described as a systematic and rational process of establishing ends and means Chandler, 1962;Gimbert, Bisbe, and Mendoza, 2010). Ends represent missions, goals, and objectives set by the organization, and means are the programs of actions and operational plans that marshal organizational resources .…”