A Systems Management Approach for Improvement of Organizational Performance Measurement Systems

• Authors: Anne J. Jensen;Andrew P. Sage
• Venue: Information-Knowledge-Systems Management
• Year: 2000

Organizations can more readily monitor and reposition their operations in fast-paced, competitive environments when their performance measurement systems provide them with relevant, timely, complete, and accurate information.ï戮 ï戮 Despite recognition of the need for such systems, much organizational performance measurement guidance consists primarily of descriptive approaches and anecdotes.ï戮 ï戮 There is a need for a structured approach to documenting and analyzing organization-wide performance measurement systems such as to address the organization, its environment, its measures, and its measurement infrastructure as an integrated whole.ï戮 ï戮 The purpose of this article is to describe a systems management approach and an associated process that have been developed to support the documentation and analysis of organization-wide performance measurement systems.ï戮 ï戮 A decision support system, The Organizational Performance Tracking & IMprovement Analysis System (OPTIMAS), was developed to automate use of the process and facilitate the documentation, analysis, evolution, and improvement of organizational performance measurement systems.ï戮 ï戮 It is described in this article.ï戮 ï戮 The approach and software emphasize identification of suppliers and customers, exogenous influences on organizational performance, the performance information infrastructure, and organizational components and processes.ï戮 ï戮 It requires detailed specification of performance measures and their logistical requirements.ï戮 ï戮 It supports analyses of individual metrics, sets of metrics sets, and the information infrastructure required for successful performance measurement.ï戮 ï戮 A case study illustrates use of the OPTIMAS process.