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Determinants for the Goodness of Performance Measurement Systems: The Visibility of Performance
Abstract
The supply of adequate information is one of the main functions of Performance Measurement Systems (PMS), but also one of its drawbacks and reason for failure. Not only the collection of indicators is crucial, but also the stakeholders' understanding of their meaning, purpose, and contextual embedding. Today, companies seek a PMS without a way to express the goodness of a solution, indicating its ability to deliver appropriate information and to address these demands. The goal of this chapter is to explore the mechanisms that drive information and knowledge supply in PMS in order to model a way to express this goodness. Using a grounded theory approach, a theory of visibility of performance is developed, featuring a catalog of determinants for the goodness of PMS. Companies can conveniently use them to assess their PMS and to improve the visibility of their performance.
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