ABSTRACT
This chapter discusses the problems of over-reliance on financial oriented performance measures and deals with the role of strategic performance measurement within organisations. It describes the various approaches and types of performance measurement systems and explores the influence of the marketing dashboard and its influence on strategy. The chapter also describes the difference between private and public sector oriented performance measurement. It provides an overview of the salient performance measurement literature and insight to allow the reader to think critically about the design and implementation of strategic performance measurement systems (SPMS). SPMS can aid strategy implementation and the strategy (re)formulation process. Nevertheless, despite the growing number of publications on organisations' PMS, consensus on implementation remains elusive. Effective performance measurement requires management to arrange work and establish decision-making processes together with the communication of renewal strategies. SPMS operationalise firm strategy with a set of performance measures, which in economic and competitive environment necessitates explicit links between strategy and performance measures.
