An Organizational Success Story: Performance Measurement System in a Swedish Public Organization

Abstract: Researchers in public sector management depict the design and implementation of PMSs as problematic in the sense of members oftentimes opposing these systems due to high institutional pressure. Consequently, PMSs are decoupled from the operational activities and used in a symbolic manner since they are perceived to threaten identities and cultures in organizations. Our thesis sheds light on how the examined organization has managed to design and implement PMS which has been accepted and perceived by members to be functional and appropriate. The aim of our study is to explore the design of the system in a Swedish District Court. In addition, we examine how institutional pressure and leadership through sensegiving efforts can affect the design and implementation of the system. A single-case study was conducted in which data was collected through eight semi-structured interviews with employees in one of Sweden's most effective courts and The Swedish National Court Administration (SNCA). We found that, based on the perception of our interviewees, low institutional pressure has allowed for bottom-up leadership, strong sensegiving efforts and involvement of employees to design and implement PMS that fits the organizational needs. This is characterized by limited measures, suitable structure and targets that are not imposed but rather designed by involving members. This in turn enabled the organization to achieve its objectives in term of effectiveness and efficiency.