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

Purpose - To 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/approach - This 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. Findings - When 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/implications - The 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 implications - Measurement 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/value - This 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.