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Strategic Performance Management in Practice:
Advantages, Disadvantages and Reasons for Use

19 Pages Posted: 31 Jul 2008  

Karima Kourtit

VU University Amsterdam

A.A. de Waal

Maastricht School of Management (MSM)

Date Written: July 31, 2008

Abstract

Strategic performance management (SPM) has become an important vehicle for business management in today's turbulent business environment. Therefore SPM has attracted much research interest from the side of both scientists and policy-makers. The question is however whether SPM has brought added value for organizations. This paper examines the advantages, disadvantages and reasons for use of SPM which organizations experienced in practice. Based on literature research and interviews at seventeen prominent Dutch organizations, four main advantages, (higher result orientation, better strategic clarity, higher people quality, higher organizational quality), two main disadvantages (badly aligned system, low information quality) and two main reasons for use (focus on control, focus on strategy) were identified. The research showed that in general the advantages were experienced to a much greater degree than the disadvantages, and that specific reasons for use achieved specific advantages. With the research results, management can convince organizational members that SPM is indeed beneficial for the organization. Management can also check whether full benefit has been achieved by using SPM.

Keywords: strategic performance management, organizational results, management control, performance-orientation

JEL Classification: M49

Suggested Citation

Kourtit, Karima and Waal, A.A. de, Strategic Performance Management in Practice: Advantages, Disadvantages and Reasons for Use (July 31, 2008). Available at SSRN: https://ssrn.com/abstract=1192264 or http://dx.doi.org/10.2139/ssrn.1192264

Karima Kourtit

VU University Amsterdam ( email )

De Boelelaan 1105
Amsterdam, ND North Holland 1081 HV
Netherlands

A.A. De Waal (Contact Author)

Maastricht School of Management (MSM) ( email )

6201 BE Maastricht
Netherlands

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