Proposal of a performance measurement system model: overcoming effectiveness barriers
Although the importance of Performance Measurement Systems (PMS) is recognized by organizations in general, it is found that many of these systems are ineffective and end up being discredited. The research question inherent to this work is: how to develop a PMS capable of mitigating the main barrier...
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| Format: | Article |
| Language: | English |
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Sciendo
2025-06-01
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| Series: | Production Engineering Archives |
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| Online Access: | https://doi.org/10.30657/pea.2025.31.25 |
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| author | Cunha Flávio Dinis-Carvalho José Sousa Rui M. |
| author_facet | Cunha Flávio Dinis-Carvalho José Sousa Rui M. |
| author_sort | Cunha Flávio |
| collection | DOAJ |
| description | Although the importance of Performance Measurement Systems (PMS) is recognized by organizations in general, it is found that many of these systems are ineffective and end up being discredited. The research question inherent to this work is: how to develop a PMS capable of mitigating the main barriers to the effectiveness of this kind of system? Subsequently, the main objective of this paper is to present a new PMS, called PMS_UM, together with the respective implementation methodology, capable of reducing the impact of the most common barriers to effectiveness, something that the current PMS do not achieve. The research was conducted in the period 2021-2024, and, in terms of methodology, this paper relies on the designated Grounded Theory as it systematically brings together the knowledge needed to develop a robust and effective PMS model and implementation methodology from a set of four studies previously carried out and published by the authors. The methodology begins with identifying barriers to PMS effectiveness through scientific articles, interviews and questionnaires. It then focuses on recognizing existing PMS (and their characteristics) that can mitigate some of these barriers and developing solutions (and necessary PMS characteristics) for unaddressed barriers. All characteristics are classified into groups and their relationships are mapped to develop an effective PMS model. The process integrates theoretical research with practical organizational insights. The main results of this work are (i) the PMS_UM model, which encompasses the critical characteristics needed to be an effective PMS, along with (ii) the corresponding practical methodology for development, implementation and maintenance. Both the model and the methodology are evaluated based on their ability to mitigate or eliminate the most common barriers to PMS effectiveness, thus demonstrating the better performance of PMS_UM compared to existing PMS. As for practical implications, this work provides managers with the means to, step by step, obtain a robust and effective PMS that truly reflects the state of the company and is therefore an essential tool not only for day-today management but also to support any improvement intervention. The PMS_UM model and methodology have not yet been tested in real-world scenarios, which is, at the moment, the main limitation of this work. |
| format | Article |
| id | doaj-art-fa8b7dae34484553814cd25fa13a43ab |
| institution | DOAJ |
| issn | 2353-7779 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Production Engineering Archives |
| spelling | doaj-art-fa8b7dae34484553814cd25fa13a43ab2025-08-20T03:20:26ZengSciendoProduction Engineering Archives2353-77792025-06-0131224726510.30657/pea.2025.31.25Proposal of a performance measurement system model: overcoming effectiveness barriersCunha Flávio0Dinis-Carvalho José1Sousa Rui M.2Algoritmi Centre, Department of Production and Systems, University of Minho, 4800-058Guimarães, PortugalAlgoritmi Centre, Department of Production and Systems, University of Minho, 4800-058Guimarães, PortugalAlgoritmi Centre, Department of Production and Systems, University of Minho, 4800-058Guimarães, PortugalAlthough the importance of Performance Measurement Systems (PMS) is recognized by organizations in general, it is found that many of these systems are ineffective and end up being discredited. The research question inherent to this work is: how to develop a PMS capable of mitigating the main barriers to the effectiveness of this kind of system? Subsequently, the main objective of this paper is to present a new PMS, called PMS_UM, together with the respective implementation methodology, capable of reducing the impact of the most common barriers to effectiveness, something that the current PMS do not achieve. The research was conducted in the period 2021-2024, and, in terms of methodology, this paper relies on the designated Grounded Theory as it systematically brings together the knowledge needed to develop a robust and effective PMS model and implementation methodology from a set of four studies previously carried out and published by the authors. The methodology begins with identifying barriers to PMS effectiveness through scientific articles, interviews and questionnaires. It then focuses on recognizing existing PMS (and their characteristics) that can mitigate some of these barriers and developing solutions (and necessary PMS characteristics) for unaddressed barriers. All characteristics are classified into groups and their relationships are mapped to develop an effective PMS model. The process integrates theoretical research with practical organizational insights. The main results of this work are (i) the PMS_UM model, which encompasses the critical characteristics needed to be an effective PMS, along with (ii) the corresponding practical methodology for development, implementation and maintenance. Both the model and the methodology are evaluated based on their ability to mitigate or eliminate the most common barriers to PMS effectiveness, thus demonstrating the better performance of PMS_UM compared to existing PMS. As for practical implications, this work provides managers with the means to, step by step, obtain a robust and effective PMS that truly reflects the state of the company and is therefore an essential tool not only for day-today management but also to support any improvement intervention. The PMS_UM model and methodology have not yet been tested in real-world scenarios, which is, at the moment, the main limitation of this work.https://doi.org/10.30657/pea.2025.31.25performance measurement systemkey performance indicatorscontinuous improvementoperational excellencelean production |
| spellingShingle | Cunha Flávio Dinis-Carvalho José Sousa Rui M. Proposal of a performance measurement system model: overcoming effectiveness barriers Production Engineering Archives performance measurement system key performance indicators continuous improvement operational excellence lean production |
| title | Proposal of a performance measurement system model: overcoming effectiveness barriers |
| title_full | Proposal of a performance measurement system model: overcoming effectiveness barriers |
| title_fullStr | Proposal of a performance measurement system model: overcoming effectiveness barriers |
| title_full_unstemmed | Proposal of a performance measurement system model: overcoming effectiveness barriers |
| title_short | Proposal of a performance measurement system model: overcoming effectiveness barriers |
| title_sort | proposal of a performance measurement system model overcoming effectiveness barriers |
| topic | performance measurement system key performance indicators continuous improvement operational excellence lean production |
| url | https://doi.org/10.30657/pea.2025.31.25 |
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