Conceptual design of performance measurement and management systems using a structured engineering approach

Abstract

Purpose -To provide and illustrate a structured engineering approach for conceptual design of enterprise performance measurement and management systems. Design/methodology/approach -The paper proposes and utilizes a design approach based on combining an enterprise engineering process with a system dynamics (SD) modeling methodology. A research case application in a call center using real data serves as an illustration of these ideas. Findings -This proposed approach provided clear guidance through all the steps of the research case developed. When compared to traditional alternatives, it especially enhanced considerations pertaining to causality relationships among performance metrics, both in a qualitative as well as in a quantitative way. Originality/value -The explicit combination of enterprise engineering and SD methods creates new research and application opportunities. From a research perspective it establishes a framework for dealing with performance from a systems life-cycle perspective as well as points to the need for developing integrated modeling techniques. From a practical perspective, the results achieved to this point provide a conceptual design guideline of immediate applicability. IntroductionMeasurement, data collection, and information portrayal on performance are essential activities in managing any enterprise system. As information portrayed is converted into information perceived, decision makers at all hierarchical levels are then able to define and carry out actions upon their respective management domains, i.e. the core system being managed (Figure 1). The purpose is to drive performance over time towards desired conditions.

A decision framework for the consolidation of performance measurement systems

“…n/a n/a n/a "Gap analysis" that compares the actual PMS with a newly designed PMS to reveal necessary changes n/a Neely et al [62] Brainstorming to identify all required information, including comprehensiveness check Sousa et al [76] n/a Postulated, but not specified within the approach n/a n/a Identification of interdependencies via a systems dynamics approach (case study)…”

Modeling and evaluation of product quality at conceptual design stage

“…The discussions suggest that the quality of a product is dependent on many variables, which may have mutual interrelations and interactions among themselves. Evaluating the overall quality of a particular design of a product is achieved by describing the product quality as a system, and constructing a structural model (Sousa et al 2005), which can be conveniently decomposed into sub-structures, which are quality features specific to the chosen product design. These features have mutual influence to varying degrees.…”

The impact of multi-criteria performance measurement on business performance improvement

“…Other contributions to performance measurement system design include the dynamic performance measurement system proposed by Bititci, Turner and Begemann (2000), the SMART performance pyramid (Lynch & Cross, 1991) and the performance measurement questionnaire proposed by Dixon, Nanni and Vollmann (1990), which audits existing measures based on their effect on improvement and the importance of improvement in different areas and factors. Souza, Carpinetti, Van Aken and Groesbeck (2005) proposed a conceptual design of performance measurement and management system using a structured engineering approach. Some of BSC limitations highlighted by Lee and Amaral (2002) were; BSC is simply a static management dashboard, highly weighted by financial information while more important non-financial data and qualitative information are not being captured or synthesized.…”