In recent years, we have seen innovations in organisational performance management systems that balance financial and non-financial dimensions. This new research shows the potential for organisations to develop their strategic investment decision-making policies, guidance and procedures. This allows for the development and resolution of more successful strategic projects.
Background
Both academics and practitioners have examined changes to performance management systems that balance financial and non-financial aspects. The most influential has been Kaplan and Norton’s (1992; 1996) Balanced Scorecard (BSC).
New research shows that different forms of BSC have been widely embraced. Consequently, managers’ thinking about performance management is changing. These multidimensional performance measurement systems (PMS) are linked to organisational strategy and should support decision-making.
Developments in PMS thinking ought to impact strategic investment decision-making (SIDM), where the aim is to consider how future investment projects will affect organisational performance and the achievement of strategic goals.
What this report includes
In recent years, we have seen innovations in organisational performance management systems that balance financial and non-financial dimensions. This new research shows the potential for organisations to develop their strategic investment decision-making policies, guidance and procedures. This allows for the development and resolution of more successful strategic projects.
