Performance measurement is a knowledge intensive business process and performance measurement systems (PMS) are appropriate tools to collect relevant performance information. Though, the application of many PMS fails. Therefore, there is a vivid debate in the literature about the right design, implementation, and use of PMS. Other contributions describe specific obstacles in different contexts, but there is no thorough investigation of the underlying patterns, especially in the context of information supply. This paper delivers a literature review aiming at explicating the reasons for failure in order to identify patterns and implications for PMS improvement. The findings suggest that involved people have difficulties with the PMS and there the problem is not in PMS itself. They emphasize the need to improve the knowledge related side of performance. In particular, a lack of understanding of PMS results and purpose demands better information supply and quality to foster their personal and organizational adaption.
Performance measurement systems (PMS) are necessary to ensure adequate information supply to management, but an information gap exists between process analysis and execution. PMS predominantly rely on countable, objective measures, but are also designed to deliver additional viewpoints to foster necessary explanations to measurements. Still, there is no definition of how well these approaches work in delivering sufficient explanatory information. The introduced concept of visibility of performance explains how the explication of process performance information leads to additional interpretation possibilities in performance measurement to deliver embedded and rich knowledge. It is tested on a business case, in which additional subjective information could be explicated through the application of a suitable Performance Assessment Model. The result of the explication of this knowledge is an enhanced comprehension of performance that bridges the information gap between operative and strategic level.
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