Abstract:
A conceptual framework was derived by exploring how strategy change and top
management team literatures inform the performance measurement field. It
began to explain the role top management teams play using signals from their
performance measures to evolve strategy.
Adopting a Realist perspective, case study research was undertaken to seek
out the approaches taken by managers in four organisations operating in UK
regulated industry.
Using the strategy chart tool developed by Mills et al (1998) in a retrospective
manner and mapping changes in performance measures over the same time
period, the research identified events in which changes in strategy and
performance measures were linked. These event data sets were triangulated by
interviewing managers about the roles they played and specifically the actions
and factors to which they paid attention during the events.
The findings were used to test and develop the conceptual framework. This
resulted in an empirical framework that verifies existing theory that performance
evaluation is a process of learning and inducing change. It confirms that this
can be achieved whilst balancing alignment of the measures to implement
strategy and adapting them to formulate strategy (Bourne et al 2000, Gimbert et
al 2010, Kolehmainen 2010, Martinez et al 2010, Micheli and Manzoni 2010,
Micheli et al 2011). Furthermore it develops theoretical understanding through
the conduct of case studies into the role and key features of a performance
measurement system which both supports the implementation and the
formulation of strategy (Gimbert et al 2010, Micheli and Manzoni 2010) and
finally the case studies provide rich description of what strategists actually do in
crafting strategy as called for by those writing in the strategy-as-practice field
(Whittington et al 2006).
The framework may also benefit practitioners since it describes the factors to
which top management teams may pay attention in using performance
measures to develop business strategy in regulated industries.
