Implementing strategically aligned performance measurement in small firms

This paper investigates the potential for improving the implementation of strategically aligned performance measurement (PM) in smaller firms. It identifies structural and cultural characteristics that typify smaller firms and examines the PM literature to investigate implementation difficulties and whether they can be overcome through an alternative development process. An empirical study examines the implementation of strategically aligned PM in two small firms, using a process designed to overcome the difficulties that arise in this environment. The paper concludes that the current focus on achieving balanced PM systems is less critical in small firms and the key aim should be instead to stimulate strategically aligned improvement. (c) 2006 Elsevier B.V. All rights reserved.