Development of performance management system incorporating dual perspectives of enterprise and customers’

Neetu Yadav, Umit Sezer Bititci

Research output: Contribution to journalArticle

Abstract

Purpose Performance measurement and management (PMM) literature is highly abundant with numerous PMM frameworks encapsulating various aspects of enterprise performance that are largely driven by enterprise viewpoint. Considering dynamic nature of Indian telecom industry where customers hold high bargaining power in the industry, flexible strategy game-card has been adopted as a theoretical basis. The purpose of this study is to capture an “outside-in view” of enterprise performance by incorporating performance measurement from customers’ perspective and highlight dual perspectives of performance, i.e. enterprise and customers’. Design/methodology/approach Rigorous empirical data analysis tools have been used on the data collated through opinion survey to develop strategic performance management model for Indian telecom service providers where mediation effects of customers’-based strategic factors have also been captured. Findings The findings emphasize the fact that financial performance indicators are outcome variables that are driven by the external environment, internal organizational structure and business processes. An?show $146#?> effective performance management system (PMS) should consist enabling performance indicators (customers’ perspective) in addition to leading and lagging performance indicators that are widely discussed in the literature. Research limitations/implications The set of performance indicators identified is in the context of Indian telecom service operators, which should be used in another context with full caution. The generalization of the empirically validated strategic performance management model in other country context is limited. However, the process of development of PMS could be taken as an example to replicate in any other context. Originality/value Measuring an enterprise performance from customers’ perspective is the major contribution of this study. With the diverse set of performance indicators, effective PMS can be developed and deployed where tangible measures act as lagging indicators, namely, situational and operational, strategic measures act as leading indicators, and subscribers’ crucial assessment measures act as enabling indicators.
LanguageEnglish
JournalMeasuring Business Excellence
Early online date12 Jul 2018
DOIs
Publication statusE-pub ahead of print - 12 Jul 2018

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Performance management systems
Performance indicators
Enterprise performance
Telecom
Performance management
Management model
Leading indicators
Operator
Factors
Business process
Financial performance
Service provider
External environment
An enterprise
Bargaining power
Telecom industry
Mediation effect
Industry
Empirical data
Organizational structure

Cite this

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title = "Development of performance management system incorporating dual perspectives of enterprise and customers’",
abstract = "Purpose Performance measurement and management (PMM) literature is highly abundant with numerous PMM frameworks encapsulating various aspects of enterprise performance that are largely driven by enterprise viewpoint. Considering dynamic nature of Indian telecom industry where customers hold high bargaining power in the industry, flexible strategy game-card has been adopted as a theoretical basis. The purpose of this study is to capture an “outside-in view” of enterprise performance by incorporating performance measurement from customers’ perspective and highlight dual perspectives of performance, i.e. enterprise and customers’. Design/methodology/approach Rigorous empirical data analysis tools have been used on the data collated through opinion survey to develop strategic performance management model for Indian telecom service providers where mediation effects of customers’-based strategic factors have also been captured. Findings The findings emphasize the fact that financial performance indicators are outcome variables that are driven by the external environment, internal organizational structure and business processes. An?show $146#?> effective performance management system (PMS) should consist enabling performance indicators (customers’ perspective) in addition to leading and lagging performance indicators that are widely discussed in the literature. Research limitations/implications The set of performance indicators identified is in the context of Indian telecom service operators, which should be used in another context with full caution. The generalization of the empirically validated strategic performance management model in other country context is limited. However, the process of development of PMS could be taken as an example to replicate in any other context. Originality/value Measuring an enterprise performance from customers’ perspective is the major contribution of this study. With the diverse set of performance indicators, effective PMS can be developed and deployed where tangible measures act as lagging indicators, namely, situational and operational, strategic measures act as leading indicators, and subscribers’ crucial assessment measures act as enabling indicators.",
author = "Neetu Yadav and Bititci, {Umit Sezer}",
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