An exploratory study of performance measurement systems and relationships with performance results

The design of an effective performance measurement system, which includes the selection of appropriate measures and approaches for analyzing results, is central to aligning an organization's operations with its strategic direction. Despite its importance, this is one area that many organizations fail to address effectively. This paper reports exploratory empirical results, obtained from an on-line survey, on the relative emphasis and types of performance measurements and analysis approaches used by organizations in manufacturing, service, and not-for-profit (including education and health care) sectors. The results suggest that organizations with more mature performance measurement systems report better results in terms of customer, financial, and market performance. (C) 2004 Elsevier B.V. All rights reserved.