Performance measurement system and relationships with performance results

PurposeThis study aims to address an important gap between the normative view of an integrated performance measurement system (PMS) design that assumes a clean slate and the organizational realities of a PMS design as an ongoing analysis, coordination and improvement process.Design/methodology/approachThe authors present a framework for evaluating the effectiveness of a PMS based on three criteria – i.e. causality, continuous improvement and process control – and use a case study to illustrate the application of the methodology and the interpretation of results for PMS design.FindingsThe determination of “driver measures” in an integrated PMS involves a complex process that requires a number of considerations not adequately addressed in prior research.Research limitations/implicationsThis study involves only a single case study and the model presented involves only a two‐tier analysis.Practical implicationsThe framework provides a simple methodology that organizations can easily adopt to analyze individual and group performance measures and relate them to the strategic performance measures of the company.Originality/valueThe study follows an emerging line of research that addresses the design of an integrated PMS as an ongoing improvement process.