Performance measurement for planning and control in SMEs

2008

In recent years, performance measurement and management (PMM) has received much attention from researchers and practitioners. Despite the growing use of PMM systems, different problems cause companies to experience difficulty in implementing such systems, with consequent risk of partial benefits or total goal failure. The literature on PMM is nowadays quite vast, but only a ten of models addresses the problem in its entirety and relatively little research addresses to Small and Medium Enterprises (SMEs). Based on a structured literature review of PMM models, factors influencing PMM initiatives in SMEs and milestones for PMM design, the authors provide an evaluation of frameworks today available. Based on the identification of strengths and weakness of these frameworks, the authors propose a new integrated framework for PMM design, which fulfills the identified lacks and optimizes strengths. The framework proposed is a significant contribute to enhance SME application of such a systems.

American Journal of Industrial and Business Management, 2012

Balanced scorecard has proven to be a functional tool for large companies, however, small-and medium-sized enterprises (SME) have experienced it too complicated for their purposes. The aim of this research is to analyse the potential of simplifying balanced scorecard in order to acknowledge the practical realities of SMEs. The results of this study indicate that the viewpoints covered by balanced scorecard can be simplified into three categories of productivity, work fluency, and safety. A simplified balanced scorecard can act as a tool for internal communication in SMEs, by converting company strategy into common terms understandable by the employees. The managers of SMEs can use the results of this study as an example when considering the implementation of their business strategy. It is vital to involve employees when developing performance indicators.

Proceedings of the 8th WSEAS …, 2009

The paper reviews the literature in the field of performance measurement and management (PMM) for small and medium enterprises (SMEs) and it proposes a framework for PMM system design. The results of the literature review carried out reveal the need for developing real integrated PMM frameworks. Based on such a structured literature review, we propose an integrated framework that rectifies the drawbacks in previous frameworks while incorporating their strengths. The integrated framework proposed is a contribution to enhance SME adoption of PMM systems and provides milestones for PMM system design. Future research would involve an in-depth examination of such milestones to facilitate implementation

Long Range Planning, 2010

Strategic Performance Measurement (SPM) can be both functional and dysfunctional for organisations. SPM can help organisations define and achieve their strategic objectives, align behaviours and attitudes and, ultimately, have a positive impact on organisational performance. However, SPM has also been criticised for several reasons, such as encouraging perverse behaviours, stifling innovation and learning, and having little effect on decision-making processes. If both perspectives are valid, how can organisations make SPM more of an asset and less of a liability? In this article, we argue that the design of an SPM system (SPMS) and the definition of its roles are fundamental factors determining its success and impact on business performance. Indeed, only by carefully considering characteristics and roles will managers reap the full benefits, and SPMSs make a substantial contribution to the achievement of organisations' strategic goals. Building on the papers selected for this Special Issue, we draw conclusions that are relevant for both the theory and the practice of SPM. First, the benefits and limits of SPM depend on the very definition of what SPM should be, and on whether the measurement of performance is linked to both formulation and implementation of strategy. Secondly, the types of behaviour promoted by the SPMS are determined primarily by the uses of the system, particularly whether it is adopted for control or learning purposes. Thirdly, organisations should regard their SPMS as a means of fostering alignment to an existing strategy, but also of supporting empowerment and the continuous adaptation of strategy and tactics. Finally, in order for SPM to support The design of an SPM system and the definition of its roles are fundamental factors determining its success

2015

The competitiveness of organizations depends, among other things, of their performance levels. For such, it is vitally important that they have a measurement and evaluation system that, from a set of indicators, provides them reliable information to reflect their goals and evaluate their performances. The aims of this study are: (i) to identify the most discussed approaches in the literature to evaluate the organizational performance, and (ii) to carry out a diagnosis of how small and medium enterprises with economic activity in Portugal measure and operationalize the evaluation of their performance. To meet the objectives of the study, we proceeded to the analysis of published studies in scientific journals and conducted twelve interviews in SMEs. The results indicate that, in addition to the majority of the studied organizations not having a formal process of their strategy, they also do not measure their results in an integrated system that would allow them to make an evaluation according to their strategic goals.

— In Morocco, Small and Medium Sized Enterprises (SMEs) form the backbone of the private sector. They represent more than 95% of the Moroccan economy. However, most of them operate in a fierce competitive environment. This is why, it is important to optimize their business practices. The literature highlights the important role of performance measurement systems (PMS) in the development of the SMEs. However, PMS adoption in the Moroccan SMEs is a subject about which little is known due to the lack of research. This paper aims at presenting the theoretical framework for investigating PMS adoption in the Moroccan SMEs. To do this, a review of the literature on the performance measurement concept is presented. Then, the Moroccan Small and Medium Sized Enterprises are described. Finally, the theoretical framework of the study is identified and our choice is justified. Different classifications of PMS adoption in the Moroccan SME are suggested in the light of the typology presented by Garengo " Garengo's classification " .

Scholarly literature offers methodologies for the implementation of a PMS that are based upon a top-down approach and that aim at translating strategy into action, with little consideration to the tendency of small enterprises not to give much importance to the formalisation of their strategic choices. In this chapter, the authors identify a circular methodology to implement a strategically aligned performance measurement system in SMEs. The proposed methodology is based on the Balanced Scorecard Model and features four main phases: (1) the analysis of current " individual dashboards " to actually show the performances that are kept under control; (2) the clarification of the key success factors (CSFs) underlying the measures under control; (3) the definition of the desired strategy map as a result of the comparison between CSFs that are currently under control and the desired strategy; (4) the translation of the desired strategy map into a dashboard of indicators necessary for the implementation of the strategy.

Measuring Business Excellence, 2010

Purpose -The purpose of this paper is to review the literature in the field of performance measurement and management (PMM) for small and medium enterprises (SMEs) and large companies and propose a research agenda for the future. Design/methodology/approach -This paper provides an update of Neely's work ''The evolution of performance measurement research'' The literature review has been carried out by using two different methodologies. Citation/co-citation analysis has been used to explore ''performance measurement'' (PM) literature, while a chronological review of main frameworks/models developed both for large and small companies is presented in order to highlight ''PMM'' literature.

Nowadays, within a globalized market and increase need to remain competitive, organizations and their stakeholders need to excel along all dimensions in performance (Neely et al., 2002). Several managerial system models like quality management systems (QMSs) are used for improving performance and promoting productivity in organizations. The decision after planning, designing and implementing each of these performance models for organization performance evaluation and measurement is the fact that shows to what extent the organization has achieved pre-designed strategies and goals. Simultaneously, this new system has been effective in improving organizational performance. At this stage, performance measurement (PM) is one of the principal functions of organizations. However, existing performance measurement systems (PMSs) hold weak points, specifically in the QMS. The accuracy of the outcomes achieved through QMS will be objected to hesitation. So PMSs are considered as a means to gain competitive advantages and continuously react and adapt to external changes (Cocca and Alberti, 2008). According to Kennerley and Neely (2002), organizations need to have systematic processes in assessing and monitoring their PMS. Garengo and Bernardi (2007) state that the lack of resource and managerial expertise becomes a main criterion continuously excelling in the market and indeed organizations have to be extremely flexible and reactive to market changes. A strong concentration of literature has been mainly on large enterprises and lacks suitability of its application on SMEs (Cassell et al., 2001). Similarly, performance measurement (PM) is less discussed in SMEs (Garengo and Bernardi, 2007) and been confirmed by the gap between theory and practice observed by numerous authors in SME (Hudson et al., 2001, Sousa et al., 2006, Cocca and Alberti, 2008)

International Journal of Business Performance Management, 2010

This paper proposes a method for PMS design in SMEs and an information system (IS) compatible with the PMS formulated using this method. It also discusses the barriers for PMS and software implementation in SMEs. Both the PMS design method and the IS requirements were based on a literature review. The software was then developed and a pilot case was conducted in an SME using action research to evaluate the factors influencing its adoption. After the pilot case, it was possible to identify important factors that may enable or hinder PMS and software implementation. One main finding is that an incremental approach is more suitable to the needs of SMEs, since it increases PMS buy-in and facilitates organisational learning concerning performance measurement fundamentals. As for the pilot case, the organisation's IS manager proved to be indispensable for implementing the PMS due to his holistic view of the company.

2007

I, Molefe Pooe, hereby declare that: Development of strategic performance measuring tool for SMEs in the construction industry is the result of my own independent investigation and work, except where otherwise stated. This dissertation is being submitted in partial fulfillment of the requirements for the degree of Magister in Business Administration. This work has not previously been accepted in substance for any degree at any other university of institute of learning. All sources used or quoted have been indicated and acknowledged by means of complete references. A reference list is attached. I herby give consent for this dissertation, if accepted, to be available for photocopying and inter-library loan. It may also be made available to any outside organisations or interested parties.

2010

The paper reviews the literature in the field of performance measurement and management (PMM) for small and medium enterprises (SMEs) and large companies. The methodology adopted for reviewing the literature relies on the citation/co-citation analysis of research on PMM and on the analysis of the frameworks/models developed in the last twenty years both for large and SMEs. The evolution of the research field is discussed and future areas of research are identified. The results of the literature review carried out reveal a certain maturity of the literature related to large companies and a significant lack of PMM literature for SMEs.

Presented at the Spring 2015 Conference and the 22nd Summer Conference 2015 of the Multinational Finance Society, 2015

In the domain of management science the operationalization of the firm performance, and more specifically, financial performance is a key element of the empirical research design process. Despite the tremendous number of published empirical studies in the management science, there seems to be little consistency to the definition of the financial aspect of performance, especially when it concerns small and medium-size enterprises. The paper presents the results of a literature review examination of 50 selected SME studies as regards the choice of financial performance measures as dependent variables. We discuss the ‘single measure’ approach vs ‘multiple measures’ approach, the data collection methods (objective data vs subjective perceptions), and the ‘sustainability in financial performance’ concept, which is increasingly used in new fields of strategic management such as the resource based view of the firm. The paper was written as a contribution to a research team effort of creating the survey construct for a cross-national resource based theory framework for SMEs.