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New performance measurement and management control systems

Author

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  • T. Watts
  • C.J. McNair‐Connolly

Abstract

Purpose - Focusing on how performance management systems support control, this article seeks to provide two “next‐generation” performance scorecards – the Performance Wheel, suitable for most organizations and the Small Business Performance Pyramid, which acknowledges the unique requirements of small business. This development considers the historical development, increasing variety and often the poorly integrated status of performance measurement systems – one of business management's most important tools. Design/methodology/approach - The paper considers the issues of various performance measurement models – the Performance Pyramid, the Results and Determinants mode, the Balanced Scorecard – through the integration of perspectives, metrics and terminology. Further, it integrates the emphases of different approaches into a menu from which each enterprise can select the wisest option. Findings - The Performance Wheel and the Small Business Performance Pyramid suggest these seemingly different models of control can be reduced to one overarching model. It incorporates and addresses the identified weaknesses of previous models and provides a comprehensive model of performance management that can be adapted to meet the needs of any form of enterprise – small to large, service to not‐for‐profit to manufacturing. Research limitations/implications - The implication for business is the development of two equally important models that allow the optimal application of practice to align with organizational‐specific decision making. Originality/value - These new models overcome the “top‐down” or “bottom‐up” shortcomings of popular systems, incorporate the insights of enterprise control and integrate the importance of mission, strategy, critical success factors and key performance indicators as they apply to organizations.

Suggested Citation

  • T. Watts & C.J. McNair‐Connolly, 2012. "New performance measurement and management control systems," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 13(3), pages 226-241, November.
    • Handle: RePEc:eme:jaarpp:v:13:y:2012:i:3:p:226-241
    DOI: 10.1108/09675421211281308
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    Citations

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    Cited by:

    1. Jean Tsitaire Arrive & Mei Feng, 2018. "The complexity of the environment, management control and firm performance," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1347-1354, December.
    2. Bezerra, George C.L. & Gomes, Carlos F., 2018. "Performance measurement practices in airports: Multidimensionality and utilization patterns," Journal of Air Transport Management, Elsevier, vol. 70(C), pages 113-125.
    3. Mai, Nhat Chi, 2021. "Determinants of successful adoption of the Balanced Scorecard in Vietnamese small and medium-sized enterprises," OSF Preprints 5hx2r, Center for Open Science.
    4. Hakeem Hammood Flayyih & Aws Saeed Mirdan & Abderrazek Hassan Elkhaldi, 2021. "Critical Success Factors Of Strategic Accounting Information System And It'S Relation With Strategic Decisions Effectiveness," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 227-234, July.
    5. Jana Hornungová & Kateřina Petrová & František Milichovský, 2020. "Modeling Cause and Effect Relationships of Strategy Map Using Economic and Social Performance Factors in the Organizational Culture," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 68(3), pages 613-624.
    6. Jana Hornungova, 2014. "Development of Concepts and Models of Performance Evaluation from the 19th Century," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 2, pages 143-154, June.
    7. Jürgen Harrer & Andreas Wald, 2016. "Levers of enterprise security control: a study on the use, measurement and value contribution," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(1), pages 7-32, February.

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