Conflict as a Tool: Giving Voice to KPIs | A case study on how to build dynamism into PMM systems

Abstract: As recent economic development has created fast moving business environments for most companies, this study has the intention of answering a call from Bourne et al. (2015). The call regards the issue that most previous knowledge within the literature of Performance Measurement and Management (PMM) is founded on the assumption that organizations operate in stable environments, and that PMM systems in turbulent environments have not yet been adequately explored. Through a single-case study of a Swedish retail company, the objective of this paper was to understand how to build dynamism into the PMM system. Based on the recent findings of Melnyk et al. (2014), Micheli and Mari (2014) and Kolehmainen (2010) three components are deemed essential for dynamism: resilience, double-loop learning and indirect influence. This paper combines the three components with the management theory of dialectics (Hegel, 1812/1998) and presents the Performance Measurement and Dialectical Management model. The results indicate that the model, through a system of inherently conflicting Key Performance Indicators, has a beneficial effect on an organization's ability to build dynamism into the PMM system.