What Really Happens with Performance Management Systems

Abstract

CEOs are increasingly focusing on strategy implementation rather than strategy formulation as the key to ultimate success. The systems, processes and tools that managers adopt to manage organisational performance and align performance with strategic objectives form the core of strategy implementation. Otley (1999) argues that performance management frameworks provide a useful mechanism for examining holistically management control techniques used by organisations. Performance management systems span beyond simply measuring performance to include the related strategic planning and feedback processes. A key benefit of taking the performance management framework view of management control systems is that it allows for a complete rather than piecemeal evaluation of the system.