Modelling A Successful Performance Measurement System

Abstract

The performance measurement system (PMS) is one of the complex but most important systems in every organization. Adopting a PMS is not a simple technical procedure and takes lots of time, efforts and resources. Besides, poorly managing the PMSs risk being burdensome without helping to reach the objectives. But, could an organization really have a successful PMS without a deep understanding of its requirements and critical success factors (CSFs)? and what are the barriers to the achievement of a successful PMS? These are important issues which often less noticed in practice. If a PMS is not well adopted it would not bear fruit. Therefore, recognizing requirements and CSFs of PMSs are among of the major challenges confronting PMSs and contribute significantly to their success in this highly competitive environment. This paper identifies and analyzes the most important challenges and CSFs confronting a PMS and introduces a successful PMS model. This model lays down a path for a PMS works efficiently and being successful within organizations. Furthermore, performance measurement frameworks and, in particular, the balanced scorecard (as the most popular framework) are scrutinized in this paper