Scoring strategic performance: a pragmatic constructivist approach to strategic performance measurement

This paper analyses the characteristics of good strategic performance that contribute to the overall performance of a successful company. We apply a framework of pragmatic constructivism in order to analyse and measure strategic performance. We use the model for performance measurement based on pragmatic constructivism for the more specific topics of measuring, assessing and analysing strategic performance as opposed to operational performance. This paper analyses the characteristics of strategic performance that successfully enhance the overall performance of the company. The purpose is to outline a framework for strategic performance measurement that can be used to guide and measure strategic leadership. The framework focuses on the concepts of coherence and coherence tracing as the basic concepts for strategic performance and thus the task for strategic performance measurement.     

Implementing the Balanced Scorecard in Greece: A Software Firm’s Experience

The Balanced Scorecard (BSC) is a relatively new approach to strategic management and performance measurement and control, which has generated substantial interest in the academic and industrial communities. This paper presents the experience from the implementation of a specific BSC model at a large software development company in Greece. The study illustrates and evaluates the main obstacles and shortcomings, as well as the critical success factors that characterise such BSC projects, while offering managerial insights and guidelines for similar implementations.     

Strategic management in a firm of consulting engineers

This article describes the introduction of strategic management in a large and diversified company of consulting engineers in Brazil. This was done by a massive strategic planning effort in which the 60 top people of the company actively participated. This approach was chosen to produce both a comprehensive corporate strategy and strategic management capability throughout the company. The project therefore gave as much attention to training and guidance as to planning itself. Psychological, organizational and ‘political’ factors were taken seriously into account. Project management was a good joint-venture between some top people inside and some external consultants, strongly interacting with each other. The project resulted not only in plans, but also in decisions, including tidying-up the divisional structure of the firm. The article evaluates the project to determine success factors in such undertakings. It is interesting for managers to appreciate the factors involved in efforts to produce plans, develop managers and reorient a company at the same time. It is also interesting because it shows a fruitful, although demanding role for management consultants in strategic reorientations: more committed, more ‘on-line’ than experts submitting recommendations; less amorphous and more performance-oriented than organizational development gurus.     

Strategic planning for increased profit in the small business

This article examines the problems facing the owner-managers of small businesses, and details the investment required in strategic process development which would guarantee the critical 5 per cent difference to ensure the successful growth and adaptability of the company. Formal strategic planning needs to blend with team development to create the concept of ‘strategy-in-use’ and the development of effective management teamwork out of a planning process.     

Global Software Development: Commitment,Trust and Cultural Sensitivity in Strategic Partnerships

Much research has studied off-shore outsourcing from a Western client perspective. This article tries to shed light on what an Indian vendor perceives as important to manage large and complex strategic partnerships in IT outsourcing, and in particular how mutually profitable, long-term relationships with European clients are created and maintained, both at company and project levels. We investigate this issue through qualitative interviews with various vendor representatives in offshore and on-site teams in a top tier multinational company of Indian origin.In the analysis of interview accounts of close collaboration processes in two large and complex projects, where off-shoring of software development is moved to a strategic level, we found that the vendor was able to establish a strategic partnership through long-term engagement with the field of banking and insurance as well as through conscious relationship management with the clients. Three major themes describe important aspects of the strategic partnerships: 1) senior management commitment and employee identification with the projects, 2) mutual trust and transparency, and 3) cross-cultural understanding and sensitivity. The article draws attention to the important collaborative work done by people who are able to span boundaries in the complex organizational set-up of global IT development projects.     

Using strategic planning to drive strategic change

This article describes a case history of strategic planning, learning and change within a major division of Dowty plc. At Dowty CASE, a telecommunications company, the management team used strategic planning as a structured learning process to generate strategic change. There are many lessons which academics and practitioners alike can learn from this case of strategic planning and change in action.     

Strategic credibility—The basis of a strong share price

Strategic credibility has to do with how favourably key stakeholders view the strategic foundations of the firm. Does the company have a solid strategic capability? Is corporate strategy responsive to emerging opportunities, organizational goals and resources? Does the company have an effective strategic planning process? To be able to answer these questions affirmatively is important. To be able to convince key stakeholders that outstanding corporate performance is planned rather than accidental is even more significant. The company that utilizes corporate communication to create and sustain a positive strategic image is well on its way to achieving strategic credibility. A record of strategic effectiveness, when skillfully articulated to company stakeholders, can pay off in improved relations with the financial community, stockholders and company employees.     

Green supply chain performance measurement using the analytic hierarchy process: a comparative analysis of manufacturing organisations

The main purpose of this research is to develop and deploy an analytical framework for measuring the environmental performance of manufacturing supply chains. This work's theoretical bases combine and reconcile three major areas: supply chain management, environmental management and performance measurement. Researchers have suggested many empirical criteria for green supply chain (GSC) performance measurement and proposed both qualitative and quantitative frameworks. However, these are mainly operational in nature and specific to the focal company. This research develops an innovative GSC performance measurement framework by integrating supply chain processes (supplier relationship management, internal supply chain management and customer relationship management) with organisational decision levels (both strategic and operational). Environmental planning, environmental auditing, management commitment, environmental performance, economic performance and operational performance are the key level constructs. The proposed framework is then applied to three selected manufacturing organisations in the UK. Their GSC performance is measured and benchmarked by using the analytic hierarchy process (AHP), a multiple-attribute decision-making technique. The AHP-based framework offers an effective way to measure and benchmark organisations’ GSC performance. This study has both theoretical and practical implications. Theoretically it contributes holistic constructs for designing a GSC and managing it for sustainability; and practically it helps industry practitioners to measure and improve the environmental performance of their supply chain.     

Integrating the Content and Process of Strategic MIS Planning with Competitive Strategy*

This paper presents a framework that links strategic MIS planning and business strategy and relates it to competitive advantage and company performance. To achieve this objective, the paper first delineates the dimensions of strategic MIS planning, focusing on both content and process issues. The notion of fit within dimensions, between sets of dimensions (process and content), and between MIS planning and competitive strategy is also introduced. Next, employing the Miles-Snow typology of business strategy, the paper posits normative differences in the dimensions of strategic MIS planning along different business (or competitive) strategies. The implications of our study for both decision makers and scholars are discussed. Propositions that tie competitive strategy, strategic MIS planning, and company financial performance are then presented. The paper concludes by providing direction for future research.     

Research Notes on the Best British Companies: a Peer Evaluation of Britain's Leading Firms

The assessment of company performance is one of the major dilemmas facing the strategic researcher. This paper reviews the alternative methods available, then uses one approach, peer assessment, to produce a guide to British company performance. Britain's best companies are identified and their profiles are examined. Their declared financial strengths and relative weaknesses in marketing and innovation are identified.     

Organizing for strategic management— A conceptual model

Managing the strategic problems is a complex process. In order to organize this process efficiently in one's own company it is necessary to understand and be able to communicate the basic factors involved. In the author's view there is a need to compile into a model concepts, relations and organizational principles of major importance to successful strategic planning. This article is based on the author's analysis of current literature and his own practical experience in Scandinavia. The article presents a conceptual model for strategic management including the planning process as well as the execution of strategic decisions. This model is related to basic organizational principles and the methodology used in project management.     

Coordinating business strategy and technical planning

Business managers face the decisions discussed in this article regularly. Without a systematic framework, the business context for these decisions is more difficult to establish and to communicate in a company. Where technology is the life-blood of the company, the strategic decision-makers can ill-afford to have the technological resources allocated in a suboptimal fashion. Nor can they afford a business strategy which does not recognize the implications of their technological assets. This article describes an approach to technological strategy formulation that has successfully achieved this.     

Performance measurement system for business processes

All companies need to know at what level and to what extent they are complying with their objectives. We present a system called PMS-BP (performance measurement system for business processes) which has been designed to define indicators and evaluate company performance. The system is used to measure performance through the integrated management of business processes and to define indicators or parameters at all levels of the company. It also detects the linkages that exist between parameters at different levels and associates them with the company's objectives and strategies through critical success factors. PMS-BP has been built around three components: a methodology, an architecture and a performance measurement structure. The interconnection between the different components makes it easy to constantly trace the relationships between the different performance measurement elements at different levels (enterprise, business entity, processes, etc.). Processes are analysed by means of different types of graphs which make it simple to read and interpret the entire context of the company. We describe a real-life case in which the PMS-BP was applied to an SME in the metal/mechanics sector.     

The impact of organisational alignment on the effectiveness of firms’ sustainability strategic performance measurement systems: an empirical analysis

Sustainability is becoming a mainstream issue for many organisations. A limited number of studies exist, however, on integrating sustainability into daily practices. Indeed, most of the research to date addresses only the definition and motivation for companies’ interest in environmental and social concerns. This paper contributes to the research on integrating sustainability into companies’ daily activities both directly and indirectly. It analyses the extent to which top management’s commitment to sustainability directly affects structural and social alignment and the effectiveness of measurement systems that monitor sustainability strategic performance and indirectly impacts firms’ social and environmental performance. Based on a quantitative analysis of survey responses from 405 large European companies, this paper documents the limited impact of social alignment to firms’ social and environmental performance. More specifically, the results challenge the diffuse belief that the alignment and commitment of middle managers to sustainability strategies as defined by the upper echelons have a relevant impact on the company’s social and environmental performance.     

Modelling collaborative product development using axiomatic design principles: application to software industry

Even though collaborative product development (CPD) is considered as a strategic business plan to maintain competitive advantage, the literature lacks a systematic and detailed model of CPD from a strategic point of view. This article aims to develop a CPD model based on an axiomatic design technique by offering a system perspective in the context of software development (SD). Software industry is characterised by a dynamic and innovative nature and it gives a suitable application area in order to detail the proposed model in industry. Three main dimensions of CPD derived from the literature are defined in strategic level: partnership process, collaboration process and PD/SD. These three dimensions are detailed into hierarchy through business feedback and by experts from software industry. The model is evaluated and verified through two interviews. A case study is then conducted to observe the performance of the model. The conceptual model offers a guideline for CPD practitioners to increase effectiveness in collaborative efforts in the development process. The proposed model incorporates the main success factors of CPD in general, collaborative SD in specific, and it can be used as a performance evaluator in collaborative projects.     

The role of trade unions in strategic planning

The changing climate of industrial relations has created a more puralist and complex state of relationships within the industrial sector of the economy. Trade unions and their employees are demanding and achieving a greater degree of participation in both the long and short term issues which affect company decisions in terms of either resource allocation or general policy. This article examines the role of trade unions within the context of strategic planning and argues that their increasing involvement is inevitable and their role should therefore be effectively recognized and their contribution to the development of corporate strategy ensured.     

The Ecological Footprint: A Metric for Corporate Sustainability

From a business perspective, one of the emerging debates is how can businesses contribute to the objectives of sustainable development. This article presents the ecological footprint accounting tool and demonstrates its usefulness in measuring and monitoring corporate sustainability. The application of the ecological footprint is based on a case study of the city of Liverpool whilst its usefulness to businesses is demonstrated with data available in the environmental reports of various companies. For companies, the ecological footprint is able to take a given environmental impact and through its methodology convert this impact into a land measurement (hectares). Once all environmental impacts are considered and measured, the ecological footprint becomes the total area of land required to support a company in terms of the resources they consume and the waste that they produce. An ecological footprint analysis can highlight how near or far a company is from being sustainable and identify those aspects that have the greatest ecological effect. The usefulness of the ecological footprint is the use of a land measurement that enables it to be readily and easily understood by all that have a vested interested in a company's environmental performance. The metaphorical resonance of the ecological footprint is seen as one of a number of powerful attributes.     

The communication of control in an international company: Methods of investigation

This article describes the methodology developed for the objective analysis of communication, in terms of its control content, in one international company. The research project examined detailed aspects of control and communication practices in the firm with some comparative material from other companies. This article is intended as a contribution both to the understanding of a complex communication system, and to the measurement of control in an international group of companies. For reasons of space an account of the mechanics of the analysis has been omitted.     

A decision support system for optimising the order fulfilment process

Many authors have highlighted gaps at the interfaces between supply chains (SCs) and demand chains. Generally, the latter tends primarily to be ‘agile’ by maximising effectiveness and responsiveness while the former tends to be ‘lean’ by maximising efficiency. When, in the SC, disruptions (that lead to stock-out situations) occur after customer orders have been accepted, managers are faced with the problem of maximising customer satisfaction while taking into consideration the conflicting objectives of the supply and demand sides of the order fulfilment process. This article proposes a cross-functional multi-criteria decision-making (advanced available-to-promise) tool that provides different strategic options from which a solution can be chosen. It also proposes a performance measurement system to support the decision-making and improvement process. The results of some experimental tests show that the model enables to make strategic decisions on the degree of flexibility required to achieve the desired level of customer service.