TL;DR: In this article, a conceptual framework for understanding the literature on the consequences of contemporary performance measurement (CPM) systems and the theories that explain these consequences is developed. But this framework is based on an in-depth review of 76 empirical studies published in high-quality academic journals in the areas of accounting, operations, and strategy.
TL;DR: The main purpose of this paper is to develop a conceptual framework for understanding the literature on the consequences of contemporary performance measurement (CPM) systems and the theories that explain these consequences.
Abstract: The main purpose of this paper is to develop a conceptual framework for understanding the literature on the consequences of contemporary performance measurement (CPM) systems and the theories that explain these consequences. The framework is based on an in-depth review of 76 empirical studies published in high-quality academic journals in the areas of accounting, operations, and strategy. The framework classifies the consequences of CPM into three categories: people’s behaviour, organizational capabilities, and performance consequences. This paper discusses our current knowledge on the impact of CPM, highlighting inconsistencies and gaps as well as providing direction for future research.
TL;DR: In this paper, the authors present the results of exploratory case-based research aimed at identifying three factors: the drivers that push companies to adopt “green” practices, the different practices that can be used to improve environmental sustainability, and the environmental KPIs measured by fashion companies.
TL;DR: Process evaluation is presented in this article as an overarching evaluation strategy for social media as well as potential key performance indicators associated with these purposes.
Abstract: Despite the expanding use of social media, little has been published about its appropriate role in health promotion, and even less has been written about evaluation. The purpose of this article is threefold: (a) outline purposes for social media in health promotion, (b) identify potential key performance indicators associated with these purposes, and (c) propose evaluation metrics for social media related to the key performance indicators. Process evaluation is presented in this article as an overarching evaluation strategy for social media.
TL;DR: In this paper, the authors present a performance measurement system for public health care organizations, in the context of Balanced Scorecard (BSC) methodology, which is able to examine the quality of the provided services, the satisfaction of internal and external customers, the self-improvement system of the organisation and the ability of the organization to adapt and change.
Abstract: The Balanced Scorecard (BSC) methodology focuses on major critical issues of modern business organisations: the effective measurement of corporate performance and the evaluation of the successful implementation of corporate strategy. Despite the increased adoption of the BSC methodology by numerous business organisations during the last decade, limited case studies concern non-profit organisations (e.g. public sector, educational institutions, healthcare organisations, etc.). The main aim of this study is to present the development of a performance measurement system for public health care organisations, in the context of BSC methodology. The proposed approach considers the distinguished characteristics of the aforementioned sector (e.g. lack of competition, social character of organisations, etc.). The proposed measurement system contains the most important financial performance indicators, as well as non-financial performance indicators that are able to examine the quality of the provided services, the satisfaction of internal and external customers, the self-improvement system of the organisation and the ability of the organisation to adapt and change. These indicators play the role of Key Performance Indicators (KPIs), in the context of BSC methodology. The presented analysis is based on a MCDA approach, where the UTASTAR method is used in order to aggregate the marginal performance of KPIs. This approach is able to take into account the preferences of the management of the organisation regarding the achievement of the defined strategic objectives. The main results of the proposed approach refer to the evaluation of the overall scores for each one of the main dimensions of the BSC methodology (i.e. financial, customer, internal business process, and innovation-learning). These results are able to help the organisation to evaluate and revise its strategy, and generally to adopt modern management approaches in every day practise.
TL;DR: In this paper, the authors proposed an integrated LARG analytic network process (ANP) model to support decision-making in choosing the most appropriate practices and KPIs to be implemented.
Abstract: In modern business environments, an effective supply chain management (SCM) is crucial to business continuity. Competition between supply chains (SC) has replaced the traditional competition between companies. Lean, Agile, Resilient and Green (LARG) paradigms are advocated as the foundation of a competitive SCM. To make a supply chain more competitive, capable of responding to the demands of customers with agility and capable of responding effectively to unexpected disturbance, in conjugation with environmental responsibilities and the necessity to eliminate processes that add no value, companies must implement a set of LARG SCM practices and key performance indicators (KPI) to measure their influence on the SC performance. However, the selection of the best LARG SCM practices and KPIs is a complex problem, involving dependencies and feedbacks. This paper proposes an integrated LARG analytic network process (ANP) model to support decision-making in choosing the most appropriate practices and KPIs to be im...
TL;DR: The various forms of top management sense-giving are illuminated through which such tightening of control is achieved and it is shown how they translate into managers’ perception of the control system as being a coercive rather than enabling one.
Abstract: To which extent do managers care about the design characteristics of performance indicators and other control systems? The paper examines this question with the help of the framework of enabling and coercive control. Drawing upon data from a longitudinal field study in a manufacturing organisation, we study operational managers’ attitudes towards the incompleteness of performance indicators. Managers are likely to perceive performance indicators as enabling if the latter facilitate their actions without unduly constraining them. This is true even for incomplete performance indicators as long as managers can handle these indicators in a flexible way, treating them as means rather than ends when carrying out their work. Our case also shows, however, how a flexible use of indicators becomes more difficult to sustain once top management signals an increased importance of the indicators. Incompleteness then becomes a more pressing concern for managers. We illuminate the various forms of top management sense-giving through which such tightening of control is achieved and we show how they translate into managers’ perception of the control system as being a coercive rather than enabling one. Taken together, the findings of the present paper add to our understanding of enabling and coercive forms of control and also extend previous studies that have addressed the problem of incomplete accounting information.
TL;DR: In this paper, a theoretical framework for utilizing safety performance indicators in safety-critical organizations is presented, which incorporates three types of indicators: outcome, monitor and drive indicators, and they are used to evaluate the organizational potential for safety.
TL;DR: Connectivity plays a crucial role as agencies at the federal and state level focus on expanding the public transit system to meet the demands of a multimodal transportation system, but measures have limited capability to analyze multi-modal public transportation systems which are much more complex in nature than highway networks.
Abstract: Connectivity plays a crucial role as agencies at the federal and state level focus on expanding the public transit system to meet the demands of a multimodal transportation system. Transit agencies have a need to explore mechanisms to improve connectivity by improving transit service. This requires a systemic approach to develop measures that can prioritize the allocation of funding to locations that provide greater connectivity, or in some cases direct funding towards underperforming areas. The concept of connectivity is well documented in social network literature and to some extent, transportation engineering literature. However, connectivity measures have limited capability to analyze multi-modal public transportation systems which are much more complex in nature than highway networks. In this paper, we propose measures to determine connectivity from a graph theoretical approach for all levels of transit service coverage integrating routes, schedules, socio-economic, demographic and spatial activity patterns. The objective of using connectivity as an indicator is to quantify and evaluate transit service in terms of prioritizing transit locations for funding; providing service delivery strategies, especially for areas with large multi-jurisdictional, multi-modal transit networks; providing an indicator of multi-level transit capacity for planning purposes; assessing the effectiveness and efficiency for node/stop prioritization; and making a user friendly tool to determine locations with highest connectivity while choosing transit as a mode of travel. An example problem shows how the graph theoretical approach can be used as a tool to incorporate transit specific variables in the indicator formulations and compares the advantage of the proposed approach compared to its previous counterparts. Then the proposed framework is applied to the comprehensive transit network in the Washington–Baltimore region. The proposed analysis offers reliable indicators that can be used as tools for determining the transit connectivity of a multimodal transportation network.
TL;DR: The research results show that the presented approach is an objective and feasible way to construct strategy maps more justifiably and can be applicable to institutions in other industries as well.
TL;DR: A comprehensive investigation of the properties of the R2 indicator in a theoretical and empirical way and the influence of the number and distribution of the weight vectors on the optimal distribution of μ solutions is analyzed.
Abstract: In multiobjective optimization, set-based performance indicators are commonly used to assess the quality of a Pareto front approximation Based on the scalarization obtained by these indicators, a performance comparison of multiobjective optimization algorithms becomes possible The R2 and the Hypervolume (HV) indicator represent two recommended approaches which have shown a correlated behavior in recent empirical studies Whereas the HV indicator has been comprehensively analyzed in the last years, almost no studies on the R2 indicator exist In this paper, we thus perform a comprehensive investigation of the properties of the R2 indicator in a theoretical and empirical way The influence of the number and distribution of the weight vectors on the optimal distribution of μ solutions is analyzed Based on a comparative analysis, specific characteristics and differences of the R2 and HV indicator are presented
TL;DR: In this article, the authors discuss the pharmacy supply chain and current managerial practices in a case hospital, examine the often conflicting goals in decision making amongst the various stakeholders, and explore the managerial tradeoffs present at the operational, tactical, and strategic levels of decision making.
Abstract: Pharmaceuticals represent a large portion of the costs in the healthcare industry due to the significant costs of these products and their storage and control requirements. In this work we discuss the pharmacy supply chain and current managerial practices in a case hospital, examine the often conflicting goals in decision making amongst the various stakeholders, and explore the managerial tradeoffs present at the operational, tactical, and strategic levels of decision making. We focus on the inventory management at a local storage unit within an individual Care Unit (CU). For the operational inventory decision we provide the reorder point and order up to level (calledmin and max par levels) that control the automated ordering system. These parameters are based on a near-optimal allocation policy of cycle stock and safety stock under storage space constraint. Tactical decision support focuses on the relevant tradeoffs amongst three key performance indicators: the expected number of daily refills, the service level, and the storage space utilization. We analyze the tradeoffs amongst the refill workload, the emergency workload, and the variety of drugs offered (called formulary). The resulting decision support tool facilitates improvements to the current management practices.
TL;DR: In this paper, an extensive overview and an interpretative review of the objective indicators until investigated by researchers are proposed, and some suggestions for the selection of the most appropriate indicators for evaluating a transit service aspect.
Abstract: The measurement of transit performance represents a very useful tool for ensuring continuous increase of the quality of the delivered transit services, and for allocating resources among competing transit agencies. Transit service quality can be evaluated by subjective measures based on passengers’ perceptions, and objective measures represented by disaggregate performance measures expressed as numerical values, which must be compared with fixed standards or past performances. The proposed research work deals with service quality evaluation based on objective measures; specifically, an extensive overview and an interpretative review of the objective indicators until investigated by researchers are proposed. The final aim of the work is to give a review as comprehensive as possible of the objective indicators, and to provide some suggestions for the selection of the most appropriate indicators for evaluating a transit service aspect.
TL;DR: In this article, a structured questionnaire survey explored PPP stakeholders perceptions of 48 project performance indicators (PIs) to identify actual KPIs for performance management and measurement in PPPs.
Abstract: Public-private partnerships (PPPs) are increasing in popularity. Major challenges in the development of PPPs have resulted from the global financial crisis. However, with respect to their monetary value, PPPs are still an attractive option for public sector projects. Performance management and measurement, in which Key Performance Indicators (KPIs) are the core elements, viewed as effective methods to help PPPs deliver value for money. This article describes in greater detail a KPI conceptual model composed of 5 performance packages and 48 indicators developed by the authors in previous studies. A structured questionnaire survey explored PPP stakeholders perceptions of 48 project performance indicators (PIs) to identify actual KPIs for performance management and measurement in PPPs. Although the survey results show that all PIs are important, performance packages contribute differently to the overall project performance. A confirmatory factor analysis (CFA) was used to test whether the proposed co...
TL;DR: This study proposes an improved hierarchical fuzzy TOPSIS model to combine the multilayer SPIs into one overall index by incorporating experts' knowledge and implies the feasibility of applying this model to a great number of performance evaluation and decision making activities in other wide ranging fields as well.
Abstract: With the ever increasing public awareness of complicated road safety phenomenon, much more detailed aspects of crash and injury causation rather than only crash data are extensively investigated in the current road safety research. Safety performance indicators (SPIs), which are causally related to the number of crashes or to the injury consequences of a crash, are rapidly developed and increasingly used. To measure the multi-dimensional concept of road safety which cannot be captured by a single indicator, the exploration of a composite road safety performance index is vital for rational decision-making about road safety. In doing so, a proper decision support system is required. In this study, we propose an improved hierarchical fuzzy TOPSIS model to combine the multilayer SPIs into one overall index by incorporating experts' knowledge. Using the number of road fatalities per million inhabitants as a relevant reference, the proposed model provides with a promising intelligent decision support system to evaluate the road safety performance for a case study of a given set of European countries. It effectively handles experts' linguistic expressions and takes the layered hierarchy of the indicators into account. The comparison results with those from the original hierarchical fuzzy TOPSIS model further verify the robustness of the proposed model, and imply the feasibility of applying this model to a great number of performance evaluation and decision making activities in other wide ranging fields as well.
TL;DR: In this article, a review of link-based indicators is presented and a multi-linear fit of the indicators is made to find a better, combined, indicator to rank the links according to their vulnerability.
TL;DR: In this article, the authors explored the inclusion of spiritual capital as a new component alongside with the other three components, while attempting to determine the association of the IC on corporate performance of Malaysian public listed companies.
TL;DR: In this article, a proposed strategy map and respective key performance indicators (KPIs) in human resources (HR) are presented. And the authors provide an overview of how HR activities are supported in order to reach the partial goals of HR as defined in the strategic map.
Abstract: The article brings out a proposed strategy map and respective key performance indicators (KPIs) in human resources (HR). The article provides an overview of how HR activities are supported in order to reach the partial goals of HR as defined in the strategic map. Overall the aim of the paper is to show the possibilities of using the modern Balanced Scorecard method in human capital.
TL;DR: In this paper, the authors investigate the relationship between organisations' sustainability performance management practices and sustainability performance and find that customer value, new product development and information capital performance indicators are each associated with a single SPMP, while the other four performance indicators (environmental, employee value, social responsibility, and financial performance) are each...
Abstract: Purpose – The purpose of this paper is to investigate the relationship between organisations' sustainability performance management practices and sustainability performance.Design/methodology/approach – Data for the study were collected from 314 medium to large organisations operating in Australia. A mailed printed questionnaire was used to collect the data. Personal interviews with 20 senior executives were conducted to pilot test and refine the questionnaire.Findings – The results indicate the organisations apply eight sustainability performance management practices (SPMPs) to improve seven different sustainability performance indicators (SPIs). Each of the eight SPMPs is positively associated with at least one or more SPIs. The paper finds that customer value, new product development and information capital performance indicators are each associated with a single SPMP, while the other four performance indicators (environmental, employee value, social responsibility, and financial performance) are each ...
TL;DR: In this paper, the authors present and explain cross country data for mandatory publicly and privately managed pension systems around the world, which is organized into three parts corresponding to three broad types of indicators: (i) relevant contextual factors referred to here as environment; (ii) pension system design parameters; and (iii) indicators of performance.
Abstract: This paper presents and explains cross country data for mandatory publicly and privately managed pension systems around the world. This report is organized into three parts corresponding to three broad types of indicators. These indicators relate to: (i) the relevant contextual factors referred to here as environment; (ii) pension system design parameters; and (iii) indicators of performance. Part one of the report provides some information on the environment in which the system operates, focusing on demographic and labor market conditions. Understanding the current and future path of demographic patterns, especially aging, will place the later section on performance into a clearer perspective. Part two on pension system design uses a standardized taxonomy to describe differences across countries. The data on system design are presented in two groups of indicators: (i) overall architecture of the system: pillars, schemes including civil servants and other special schemes, and (ii) operating parameters of the system, which includes two sub-groups: a) qualifying conditions: pension eligibility ages, and contribution history, and b) contribution rates, defined benefit (DB), and defined contribution (DC) schemes, and indexation. It should be noted that while many countries have more than one program providing retirement income benefits, unless otherwise indicated, most of the data refer only to the national scheme. Part three presents a set of performance indicators. The indicators included are core pension indicators that illustrate six key criteria of any pension scheme, namely: (i) coverage, (ii) adequacy, (iii) financial sustainability, (iv) economic efficiency (i.e., minimizing the distortions of the retirement?income system on individuals' behavior, such as labor supply and savings outside of pension plans), (v) administrative efficiency, and (vi)) security of benefits in the face of different risks and uncertainties.
TL;DR: In this article, the authors examined trends in the performance of the Portuguese construction industry and identified the factors that promote excellence and innovation in the sector, using the benefit of the doubt weighting.
TL;DR: In this paper, the authors examined the relationship between organizational culture and the performance of construction organizations and found that innovation was the most critical organizational culture as far as performance in construction organizations is concerned.
Abstract: The operation of organizations is very much influenced by their culture. Organizational culture (OC) has been defined as a pattern of basic assumptions that are manifested by the behavior of an organization. Positive OC is considered to be catalytic to performance enhancement. As construction aspires to be an efficient industry, this study aims to contribute in this regard by examining the relationship between organizational culture and the performance of construction organizations. Artifacts corresponding to OC identifiers and Performance indicators are short-listed from a literature review. These artifacts are arranged into constructs. The eight OC constructs are: Goal Clarity, Coordination and Integration, Conflict Resolution, Employee Participation, Innovation Orientation, Performance Emphasis, Reward Orientation and Team orientation. The performance indicator constructs are; Financial, Internal Business Process, Custom and Innovation & Learning. The artifacts were elaborated and operationalized for data collection. The constructs, as well as the OC-Performance relationship framework, were then analyzed and tested using Structural Equation Modeling. Innovation was found to be the most critical OC as far as performance of construction organizations is concerned. In today's knowledge based society, innovative organizations have proved to be the performers. This timely finding highlights the need for a culture that fosters creativity and supports innovation.
TL;DR: Although the Δp indicator is not Pareto compliant, it is shown here how it can be incorporated into the selection mechanism of an evolutionary algorithm (for that sake, the authors adopt differential evolution as their search engine) in order to produce a MOEA.
Abstract: An emerging trend in the design of multi-objective evolutionary algorithms (MOEAs) is to select individuals through the optimization of a quality assessment indicator. However, the most commonly adopted indicator in current use is the hypervolume which becomes very expensive (computationally speaking) as we increase the number of objectives. In this paper, we propose, instead, the use of another indicator called Δp. Although the Δp indicator is not Pareto compliant, we show here how it can be incorporated into the selection mechanism of an evolutionary algorithm (for that sake, we adopt differential evolution as our search engine) in order to produce a MOEA. The resulting MOEA (called Δp-Differential Evolution, or DDE) is validated using standard test problems and performance indicators reported in the specialized literature. Our results are compared with respect to those obtained by both a Pareto-based MOEA (NSGA-II) and a hypervolume-based MOEA (SMS-EMOA). Our preliminary results indicate that our proposed approach is competitive with respect to these two MOEAs for continuous problems having two and three objective functions. Additionally, our proposed approach is better than NSGA-II and provides competitive results with respect to SMS-EMOA for continuous many-objective problems. However, in this case, the main advantage of our proposal is that its computational cost is significantly lower than that of SMS-EMOA.
TL;DR: In this paper, a student-based performance evaluation model for business schools in Taiwan was constructed, where college graduates' starting wage and their multiple abilities cultivated in school were used as performance indicators.
Abstract: The purpose of this study is to construct a student-based performance evaluation model for business schools in Taiwan. College graduates’ starting wage and their multiple abilities cultivated in school are used as performance indicators. The value-added forms of these indicators are employed to assess the pure impact of school on graduate's performance. To prevent impractical indicator weights, we incorporate job market recruiters’ weights from an AHP survey into the assurance region data envelopment analysis (AR-DEA) for empirical analysis. Empirical results show that the public schools on average outperform the private schools. However, there are still some private schools that perform better than the public ones. Besides, in regard to the discriminatory power and the distribution of output weights, the proposed AR-DEA is better than DEA in measuring the performance of the business colleges in Taiwan.
TL;DR: This paper aims to present an approach based on the Analytic Network Process (ANP) to manage collaborative relationships under an integrated approach by considering not only the inter-enterprise performance elements, but also the factors that influence collaboration.
Abstract: Collaboration amongst enterprises is a common strategy used to increase competitiveness. Thus, enterprises that are collaborating need to define and use performance measurement/management frameworks composed of performance elements (objectives, performance indicators, etc.) that facilitate the management of their activity, as well as monitor their strategy and processes. There are many factors, e.g. trust, interoperability of Information Systems, etc. that need to be managed properly in order to support collaborative success. However, such factors and performance are not usually managed together. Furthermore, these factors and performance elements are interrelated but these influences are commonly overlooked. This paper aims to present an approach based on the Analytic Network Process (ANP) to manage collaborative relationships under an integrated approach by considering not only the inter-enterprise performance elements, but also the factors that influence collaboration. The approach is then applied to a collaborative enterprise network belonging to the renewable energy sector. With this innovative approach, enterprises will obtain significant information for the decision-making process, regarding which are the factors and performance elements that have the greatest impact on their competitiveness, and therefore should be prioritized.
TL;DR: The results indicate that the modeling method satisfies the requirements of the performance measurement domain, and that such a method contributes to the reflective definition and interpretation of performance measurement systems.
Abstract: Performance indicators play a key role in management practice. The existence of a coherent and consistent set of performance indicators is widely regarded as a prerequisite to making informed decisions in line with set objectives of the firm. Designing such a system of performance indicators requires a profound understanding of the relations between financial and non-financial metrics, organizational goals, aspired decision scenarios, and the relevant organizational context--including subtleties resulting from implicit assumptions and hidden agendas potentially leading to dysfunctional consequences connected with the ill-informed use of performance indicators. In this paper, we investigate whether a domain-specific modeling method can address requirements essential to the reflective design of performance measurement systems, and which structural and procedural features such a method entails. The research follows a design research process in which we describe a research artifact, and evaluate it to assess whether it meets intended goals and domain requirements. In the paper, we specify design goals, requirements and assumptions underlying the method construction, discuss the structural specification of the method and its design rationale, and provide an initial method evaluation. The results indicate that the modeling method satisfies the requirements of the performance measurement domain, and that such a method contributes to the reflective definition and interpretation of performance measurement systems.
TL;DR: It is shown that explicit knowledge transfer is superior to other forms of knowledge transfer and external feedback does not even have an additional significant performance effect on learning new tasks irrespective of the type of knowledgeTransfer.
TL;DR: In this paper, the Inherent Safety Key Performance Indicators (IS-KPIs) methodology was developed to provide both a flexible procedure for the identification of the hazards, and a sound consequence-based quantification of the safety performance.
Abstract: Effective support of inherent safety implementation in process design requires a quantitative metric for monitoring and communicating the expected safety performance of alternative design options. The Inherent Safety Key Performance Indicators (IS-KPIs) methodology was developed to provide both a flexible procedure for the identification of the hazards, and a sound consequence-based quantification of the safety performance. The integration of different hazard identification techniques yields the relevant accident scenarios for each unit in the plant. The calculation of credible damage distances by consolidate consequence simulation models provides a sound basis for the definition of the KPIs based on worst case effects. Specific indicators were devoted to hazards from external actions, as natural events and intentional malicious acts. The methodology was demonstrated by the comparison of alternative technological options for LNG regasification. The application evidenced the potential of the IS-KPI method in pinpointing the critical issues related to each alternative configuration.