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6 - When it should not work but does: Anomalies of high performance

from Part II - Performance measurement – theoretical foundations

Published online by Cambridge University Press:  06 July 2010

Andy Neely
Affiliation:
Cranfield University, UK
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Summary

Introduction

One ostensible objective of research on performance measurement is to determine the characteristics of measurement systems that lead to high performance. To this end, descriptive theories of performance measurement hypothesize relationships between work contexts, the design of measurement systems, the aptitudes and behavior of workers, and the outcomes that result from the work. Normative theories specify principles of design for measurement systems intended to produce desirable outcomes.

Normative theories do not usually specifically assert that high performance results only from performance measurement systems constructed in accord with theory. But high performance achieved via means other than performance measurement should surely operate in a way that is consistent with the mechanisms inherent in these performance measurement theories. Furthermore, some theories in use, such as the one summarized by the widely accepted aphorism “What you can't measure, you can't manage,” seem to imply that a performance measurement system designed according to certain basic principles is a prerequisite for high performance.

This contribution is simple in its layout and objectives. First, we identify a minimal set of principles for designing performance measurement systems that can be extracted from theories in a wide variety of academic disciplines and applied settings. We arrive at three principles that we believe would seem unobjectionable to most performance measurement proponents. Second, we present four vignettes that describe actual events from the airline industry in which the principles of performance measurement seem to be deliberately subverted in order to produce high performance. It is important to emphasize here that these are not merely examples of high performance arrived at via a different means than performance measurement.

Type
Chapter
Information
Business Performance Measurement
Theory and Practice
, pp. 80 - 106
Publisher: Cambridge University Press
Print publication year: 2002

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