A framework to review performance measurement systems

Abstract

Purpose This paper aims to describe a structured review framework for managing business performance. The framework entails the review of business performance, including the strategic relevance of the measures, as well as the efficiency and effectiveness of the performance measurement system itself. Design/methodology/approach A range of approaches and tools are employed in the framework, which features a review card providing a high‐level view of the review process, showing the different types of review perspectives and their interactions. Findings The performance measurement system of an organisation is a mechanism to manage and control the organisation. Maintaining the effectiveness of the organisation and the measurement systems requires a systematic review process. The process of reviewing performance is a complex task that spans the whole organisation. A good review process seeks the correct balance between organisational benefits and the effort required. Originality/value Overall, the framework presented provides a structured path of performance review in a methodical and effective manner. This is useful for practitioners to apply and adapt in their situations.