Beliefs on measures and measurement - a comparison between theory and practice

Abstract: Background: There is a tendency in today’s society towards an increased focus on measures and measurement, not least within organizations. Companies use various management control systems where great emphasis is put on measures and measurement. However, not all reactions are positive; a number of authors have directed criticism towards this development. The fact that different opinions are expressed within the area of measures and measurement makes it interesting to compare theoretical perspectives with practice. Research question: Are measures and measurement comprehended differently by a user of the formal management control system compared to an administrator of it, and are the measures and measurement perceived to give value? Purpose: Our purpose is threefold. One objective is to describe whether measures are more numerous today than previously. Another objective is to investigate whether the measures are being used and if they are experienced as useful. Thus, this objective becomes a comparison between theory and practice. We also aim to interpret the understanding of measures on the part of individuals at different organizational positions. A third objective is trying to interpret the answers that surface from the first two objectives. Delimitations: The area explored in this essay is limited to finding out how measures and measurement are comprehended by two individuals at different organizational positions, in three different companies. Method: We have conducted six interviews with individuals at different organizational positions in three companies. The interview method used was qualitative; the interviews were similar to an open conversation in order to, as far as possible, elicit the true experiences and opinions of the interviewees. Key findings: Since we have taken an interpretative approach, we have not been able to come to any general conclusions. However, we have made some interesting findings regarding differences and similarities between theory and practice. All interviewees considered the number of measures and the focus on measurement to have increased. However, there seem to be differences between opinions and experiences of individuals at different organizational positions. Suggestions for further research: One suggestion for further research is to perform a piece of in-depth research and participate in management meetings and in an observing role be able to hear what the managers really talk about regarding measures and measurement. Another suggestion concerns the use of the Balanced Scorecard and other popular management control systems with respect to the concept of decoupling.