Implementing a performance measurement system capable of creating a culture of high performance

PurposeTo show how measurement systems and the way they are implemented can have a critical impact in either encouraging or discouraging a culture of high performance.Design/methodology/approachThis paper outlines a “systems view” of organisations that assist in combining the knowledge of both measurement and psychology into a practical approach that encourages a culture of high performance. It outlines examples of measurement systems that have been specifically designed to change perceptions and behaviours. These implementations transformed performance levels within a matter of months.FindingsWhen measurement systems are designed using the appropriate psychological principles, there can be a rapid change in staff behaviour that automatically leads to improved performance.Research limitations/implicationsThe psychological conditions for improving performance can be readily reproduced, but more research evidence is required to ensure widespread acceptance and use of this approach to performance improvement.Practical implicationsMeasurement systems should be designed and implemented from a psychological and performance control perspective. When they are designed in this way, organisations can rapidly achieve substantial improvements in performance.Originality/valueThis paper shows how, by combining critical aspects of psychology with the knowledge of measurement within organisations, measurement systems can be designed and implemented to encourage a complete culture of high performance. The approach can assist all managers that want to change both the culture of their organisations whilst simultaneously improving overall performance.