TY - JOUR
T1 - Business performance measures and alignment impact on strategy
T2 - The role of business improvement models
AU - McAdam, Rodney
AU - Bailie, Brian
N1 - Copyright:
Copyright 2008 Elsevier B.V., All rights reserved.
PY - 2002
Y1 - 2002
N2 - The aim of this paper is to explore the longitudinal alignment between performance measures and business strategy. Moreover, the paper will probe the role of business improvement models as a key catalyst in this alignment process. Since the late 1980s performance measurement has become topical with ever-increasing interest in the subject. The increasing interest has been driven by the rapidly changing business environment and strategy, in both the private and public sectors. A literature review covering the current issues concerning performance measurement was undertaken, emphasising the development of performance measurement in relation to business strategy. The continual alignment of performance measures and frameworks with business strategy is stressed. Also, business improvement models are reviewed as possible mechanisms for enabling this alignment. Following this review, a longitudinal case study approach, based on a five-year university/industry learning partnership with an international aerospace organisation, was used to investigate alignment between performance measures and business strategy. The findings of the study confirm that performance measures linked to strategy are more effective. Moreover, the alignment between the measures, measurement framework and the strategy must be continually reviewed and treated as a dynamic and complex issue, rather than a linear mechanistic relationship.
AB - The aim of this paper is to explore the longitudinal alignment between performance measures and business strategy. Moreover, the paper will probe the role of business improvement models as a key catalyst in this alignment process. Since the late 1980s performance measurement has become topical with ever-increasing interest in the subject. The increasing interest has been driven by the rapidly changing business environment and strategy, in both the private and public sectors. A literature review covering the current issues concerning performance measurement was undertaken, emphasising the development of performance measurement in relation to business strategy. The continual alignment of performance measures and frameworks with business strategy is stressed. Also, business improvement models are reviewed as possible mechanisms for enabling this alignment. Following this review, a longitudinal case study approach, based on a five-year university/industry learning partnership with an international aerospace organisation, was used to investigate alignment between performance measures and business strategy. The findings of the study confirm that performance measures linked to strategy are more effective. Moreover, the alignment between the measures, measurement framework and the strategy must be continually reviewed and treated as a dynamic and complex issue, rather than a linear mechanistic relationship.
KW - Business strategy
KW - Improvement
KW - Performance measurement
KW - Quality culture
UR - http://www.scopus.com/inward/record.url?scp=0036034520&partnerID=8YFLogxK
U2 - 10.1108/01443570210440492
DO - 10.1108/01443570210440492
M3 - Article
AN - SCOPUS:0036034520
VL - 22
SP - 972
EP - 996
JO - International Journal of Operations and Production Management
JF - International Journal of Operations and Production Management
SN - 0144-3577
IS - 9-10
ER -