New Performance Measurement Trends: Evidence from Selected Multinational Corporations

Murtala Zakari

doi:doi:10.11648/j.jwer.20170604.12

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New Performance Measurement Trends: Evidence from Selected Multinational Corporations

Murtala Zakari

Published in Journal of World Economic Research (Volume 6, Issue 4)

Received: 28 May 2017 Accepted: 15 June 2017 Published: 20 July 2017

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Abstract

This study seeks to examine new trends in the performance measurement system over the traditional system, how corporate organizations respond to the emerging trends, how the changes impact their businesses performance in the challenging contemporary business environment, and identify the new approaches adopted to manage the changes. To achieve this, data were collected through the deployment of case studies and analyzed content of the case studies results. As a major contribution, this study enlightens readers with new insights on performance measurement. It also provides useful guidelines for effective measurement of performance. Findings from the analysis show that traditional performance appraisals were no longer working and the business corporations are now adopting new performance measurement such as individual check-ins, team touch points, and individual development plan (IDP). The study concludes that traditional performance measurement systems such as profitability, strict working capital, revenue, volume, cash flow, return on capital employed, etc were falling short of meeting the needs of managers in a much changed business environment. It has become increasingly important for organizations to develop systems of performance measurement which reflect the growing complexity of the business environment, monitor their strategic response to this complexity.

Published in	Journal of World Economic Research (Volume 6, Issue 4)
DOI	10.11648/j.jwer.20170604.12
Page(s)	54-58
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Performance Measurement, Traditional System, Individual Check-ins, Team Touch Point, Individual Development Plan

References

[1]	Aberdeen Group (2005) ‘Aligning Employee Performance Management (EPM) with Corporate Performance Management (CPM)’, available from www.abergeengroup.com.
[2]	Accenture Corporate Site, viewed 25th December 2016, from www.accenture.com.
[3]	Adobe Corporate Site, viewed 1st January 2016, from www.adobe.com.
[4]	Barrows, E. and Neely, A. (2012) “Managing Performance in Turbulent Times – Analytics and Insights”. New Jersey, USA: John Wiley and Sons Inc.
[5]	Bell, J. (1999) “Introduction till forskningsmetodik”. Lund, Sweden: Student literature.
[6]	Bititci, U. S., Carrie, A. S., McDevitt, L. (1997) “Integrated Performance Measurement Systems: A Development Guide”. International Journal of Operations & Production Management, 17 (6).
[7]	Bourne, M., et al. (2000) “Designing, implementing and updating performance measurement systems”. International Journal of Operations & Production Management, 20 (7), pp. 754-771.
[8]	Bourne, M. (2008) “Performance measurement: learning from the past and projecting the future”. Measuring Business Excellence, 12 (4), pp. 67-72.
[9]	Cargil Corporate Site, viewed 25th December 2016, from www.cargill.co.uk.
[10]	CEB Global (2015) “World-class organizations are rethinking their performance management approach”, available from: www.cebglobal.com.
[11]	CIMA (2005) “Effective Performance Management with the Balanced Scorecard Technical Report”, London SW1P 4NP Printed in Great Britain.
[12]	Clear Review (2016) ‘What does performance management look like in 2016?’ available from https://clearreview.com.
[13]	Deloitte Corporate Site, viewed 25th December 2016, from www2.deloitte.com.
[14]	Fast Company (2016) “Six companies that are redefining their performance management”, available from www.fastcompany.com.
[15]	General Electric Corporate Site, viewed 25th December 2016, from www.ge.com.
[16]	Insala (2016) “Performance Management: Current Trends”, available from: http://www.insala.com.
[17]	Johnson, S. (2005) “The Pyramids and Pitfalls of Performance Measurement” available from http://www.accaglobal.com.
[18]	Kennerley, M. and Neely, A. (2002) “A framework of the factors affecting the evolution of performance measurement systems”. International Journal of Operations & Production Management, 22 (11), pp. 1222-1245.
[19]	Kennerley, M. and Neely, A. (2003) “Measuring performance in a changing business environment”. International Journal of Operations & Production Management, 23 (2), pp. 213-229.
[20]	Lafarge Corporate Site, viewed 25^th December 2016, from www.lafargeholcim.com.
[21]	Likierman, A. (2009) “The five traps of performance measurement’. Harvard Business Review, October, pp. 96-101.
[22]	Lynch, R. L, and Cross, K. F. (1991) “Measure up, Yardsticks for Continuous Improvement”: USA, Blackwell, 1st edition.
[23]	Merriam, S. B. (1994). Fallstudien som forskningsmetod. Lund, Sweden: Student literature.
[24]	Salloum, M. and Cedergren, S. (2012) “Managing change in performance measures – An inter-company case study approach” Int. Journal of Business Science and Applied Management, Vol. 7, no. 2, pp. 53-66.
[25]	Yin, R. K. (1994). “Case study research: Design and methods’, California, USA: Sage Publications, 2nd edition.

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APA Style

Murtala Zakari. (2017). New Performance Measurement Trends: Evidence from Selected Multinational Corporations. Journal of World Economic Research, 6(4), 54-58. https://doi.org/10.11648/j.jwer.20170604.12

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Murtala Zakari. New Performance Measurement Trends: Evidence from Selected Multinational Corporations. J. World Econ. Res. 2017, 6(4), 54-58. doi: 10.11648/j.jwer.20170604.12

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AMA Style

Murtala Zakari. New Performance Measurement Trends: Evidence from Selected Multinational Corporations. J World Econ Res. 2017;6(4):54-58. doi: 10.11648/j.jwer.20170604.12

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@article{10.11648/j.jwer.20170604.12,
  author = {Murtala Zakari},
  title = {New Performance Measurement Trends: Evidence from Selected Multinational Corporations},
  journal = {Journal of World Economic Research},
  volume = {6},
  number = {4},
  pages = {54-58},
  doi = {10.11648/j.jwer.20170604.12},
  url = {https://doi.org/10.11648/j.jwer.20170604.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20170604.12},
  abstract = {This study seeks to examine new trends in the performance measurement system over the traditional system, how corporate organizations respond to the emerging trends, how the changes impact their businesses performance in the challenging contemporary business environment, and identify the new approaches adopted to manage the changes. To achieve this, data were collected through the deployment of case studies and analyzed content of the case studies results. As a major contribution, this study enlightens readers with new insights on performance measurement. It also provides useful guidelines for effective measurement of performance. Findings from the analysis show that traditional performance appraisals were no longer working and the business corporations are now adopting new performance measurement such as individual check-ins, team touch points, and individual development plan (IDP). The study concludes that traditional performance measurement systems such as profitability, strict working capital, revenue, volume, cash flow, return on capital employed, etc were falling short of meeting the needs of managers in a much changed business environment. It has become increasingly important for organizations to develop systems of performance measurement which reflect the growing complexity of the business environment, monitor their strategic response to this complexity.},
 year = {2017}
}

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TY  - JOUR
T1  - New Performance Measurement Trends: Evidence from Selected Multinational Corporations
AU  - Murtala Zakari
Y1  - 2017/07/20
PY  - 2017
N1  - https://doi.org/10.11648/j.jwer.20170604.12
DO  - 10.11648/j.jwer.20170604.12
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
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PB  - Science Publishing Group
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AB  - This study seeks to examine new trends in the performance measurement system over the traditional system, how corporate organizations respond to the emerging trends, how the changes impact their businesses performance in the challenging contemporary business environment, and identify the new approaches adopted to manage the changes. To achieve this, data were collected through the deployment of case studies and analyzed content of the case studies results. As a major contribution, this study enlightens readers with new insights on performance measurement. It also provides useful guidelines for effective measurement of performance. Findings from the analysis show that traditional performance appraisals were no longer working and the business corporations are now adopting new performance measurement such as individual check-ins, team touch points, and individual development plan (IDP). The study concludes that traditional performance measurement systems such as profitability, strict working capital, revenue, volume, cash flow, return on capital employed, etc were falling short of meeting the needs of managers in a much changed business environment. It has become increasingly important for organizations to develop systems of performance measurement which reflect the growing complexity of the business environment, monitor their strategic response to this complexity.
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Author Information

Murtala Zakari

Post Graduate School of Accounting and Finance, Leeds Beckett University, Leeds, UK

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APA Style

Murtala Zakari. (2017). New Performance Measurement Trends: Evidence from Selected Multinational Corporations. Journal of World Economic Research, 6(4), 54-58. https://doi.org/10.11648/j.jwer.20170604.12

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ACS Style

Murtala Zakari. New Performance Measurement Trends: Evidence from Selected Multinational Corporations. J. World Econ. Res. 2017, 6(4), 54-58. doi: 10.11648/j.jwer.20170604.12

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AMA Style

Murtala Zakari. New Performance Measurement Trends: Evidence from Selected Multinational Corporations. J World Econ Res. 2017;6(4):54-58. doi: 10.11648/j.jwer.20170604.12

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@article{10.11648/j.jwer.20170604.12,
  author = {Murtala Zakari},
  title = {New Performance Measurement Trends: Evidence from Selected Multinational Corporations},
  journal = {Journal of World Economic Research},
  volume = {6},
  number = {4},
  pages = {54-58},
  doi = {10.11648/j.jwer.20170604.12},
  url = {https://doi.org/10.11648/j.jwer.20170604.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20170604.12},
  abstract = {This study seeks to examine new trends in the performance measurement system over the traditional system, how corporate organizations respond to the emerging trends, how the changes impact their businesses performance in the challenging contemporary business environment, and identify the new approaches adopted to manage the changes. To achieve this, data were collected through the deployment of case studies and analyzed content of the case studies results. As a major contribution, this study enlightens readers with new insights on performance measurement. It also provides useful guidelines for effective measurement of performance. Findings from the analysis show that traditional performance appraisals were no longer working and the business corporations are now adopting new performance measurement such as individual check-ins, team touch points, and individual development plan (IDP). The study concludes that traditional performance measurement systems such as profitability, strict working capital, revenue, volume, cash flow, return on capital employed, etc were falling short of meeting the needs of managers in a much changed business environment. It has become increasingly important for organizations to develop systems of performance measurement which reflect the growing complexity of the business environment, monitor their strategic response to this complexity.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - New Performance Measurement Trends: Evidence from Selected Multinational Corporations
AU  - Murtala Zakari
Y1  - 2017/07/20
PY  - 2017
N1  - https://doi.org/10.11648/j.jwer.20170604.12
DO  - 10.11648/j.jwer.20170604.12
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 54
EP  - 58
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20170604.12
AB  - This study seeks to examine new trends in the performance measurement system over the traditional system, how corporate organizations respond to the emerging trends, how the changes impact their businesses performance in the challenging contemporary business environment, and identify the new approaches adopted to manage the changes. To achieve this, data were collected through the deployment of case studies and analyzed content of the case studies results. As a major contribution, this study enlightens readers with new insights on performance measurement. It also provides useful guidelines for effective measurement of performance. Findings from the analysis show that traditional performance appraisals were no longer working and the business corporations are now adopting new performance measurement such as individual check-ins, team touch points, and individual development plan (IDP). The study concludes that traditional performance measurement systems such as profitability, strict working capital, revenue, volume, cash flow, return on capital employed, etc were falling short of meeting the needs of managers in a much changed business environment. It has become increasingly important for organizations to develop systems of performance measurement which reflect the growing complexity of the business environment, monitor their strategic response to this complexity.
VL  - 6
IS  - 4
ER  -

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