45 / 188
43
actions” [41]. But to explain the usefulness of performance measurement systems in
the above mentioned sense of Atkinson/Waterhouse/Wells (focusing an coordinating
decision making activities) it becomes clear that more elements than just metrics have
to be looked at in the system such as the responsible decision makers or the concerned
entities whose performance should be measured. Moreover, in a more comprehensive
and modern sense of performance measurement as management support, the sole
measurement of performance is insufficient. In the above-mentioned definition of
performance measurement by Atkinson/Waterhouse/Wells, elements of a management
process can be found. Also Hieber suggests in his approach to the collaborative Supply
Chain Management Performance Measurement approach that the following process
elements have to be integrated: phase of initialisation and configuration, phase of
analysis, phase of improvements and phase of performance measurement [23].
Therefore, the literature on performance management (systems) should be
looked at as a source of ideas to design an integrated performance measurement and
management system. A literature analysis of the term performance management reveals
an extensive coverage of contributions in the field of human resource management [12]
that will not be discussed here. Some authors on the other hand use the term to describe
the management of companies’ performances, which will be the focus here as it offers
a broader view.
3.1.3 Selected models
According to [14], performance management could be described as a process
consisting of the five following activities: selecting performance variables, defining
metrics, setting targets, measuring and analysing. Lakri/Jemai identify several roles
of a comprehensive PMMS: establishing position – current levels of performance,
communicating direction – what is to be achieved, influencing behaviour – good
and bad performance, stimulating action – identifying when to intervene, facilitating
learning – both single and double loop and, finally, implementation of strategy –
ensuring change happens [32]. Klein/Stephan even suggest a comprehensive Enterprise
Performance Management that covers the processes strategy-to-plan, measure-to-
report, reward and sustain. In the following, selected approaches are presented to
illustrate in more detail the elements of performance management and be able to
develop a summarising understanding of the elements of a comprehensive performance
measurement and management system [30].
Bredrupuses thePDCA-Cycle to suggest a comprehensive performancemanagement
model (see Figure 3.1). Within the planning phase, the performance planning based on
performance priorities is done. In the doing phase, the improvement can be done either
on the basis of a continuous improvement or on reengineering. In the checking phase,
the performance review uses firstly a performance measurement that consists of a stable
and a temporary part and secondly a performance evaluation to identify a gap between
the planned performance and the actual performance. To evaluate the performance
several (and also to define performance priorities) external sources such as benchmarks,
customer surveys or requirements from stakeholders can be taken into account. To close
the gap, appropriate actions should be defined in the action phase. [6]