A model to prepare and secure an implementation of a performance measurement system : A case study
What you do not measure you cannot control and what you do not control you cannot improve, implies that measurement is a pre-requisite for improvements. Especially for Small and Medium Sized Enterprises (SME) an implementation of a Performance Measurement System is mostly critical in terms of the fact that SMEs often is restricted of limited resources, lack of strategic thinking, lack of formal planning, as well as a reactive mentality. A model to prepare and secure an implementation of a performance measurement system at SMEs, has been developed, tested and validated through a single case study at a small enterprise, that is a well-renowned refiner of castings. The model is constituted by phases and steps supporting the advantages as well as over bridges the most common disadvantages for SMEs. The significant advantages on behalf of SMEs; loose structure, informal operating practices and lack of bureaucracy are reinforced by integrating the project and especially the output such as specification of requirements, new routines, improvement groups and forums within the organisation and in turn over bridge the disadvantages of limited resources and lack of formal planning. Identification and prioritisation of strategic objectives is the first step and creates a foundation of a continuous strategic thinking, which often SMEs are lacking, and in turn navigate the company in the right direction in order to maximise the utilisation of resources and consequently increase the profitability.
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