Beyond performance measurement: contribution measurement

Farhad Shafti

Research output: Contribution to conferencePaper

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Abstract

Purpose: The aim of the paper is to open a new horizon in the concept of Performance Measurement in business organisations, where the organisation is not looked at as an isolated entity and the impact of its performance on the society in which it performs is also taken into consideration.

Design/Methodology/Approach: To achieve the above purpose the paper presents the idea of Contribution Measurement with the use of an imaginary scenario. The scenario is based on published empirical research and is taking a mobile phone company as an example. The findings of relevant published research are used to establish the cause and effect relationship between a number of social issues and some of the performance objectives that are listed in a balanced scorecard that has been proposed for the mobile phone company.

Findings: Based on the resilt of cause and effect study, the balanced scorecard is extended to demonstrate its social impact. It is argued that the aim of the extended scorecard is not to maintain any balance, as this is practically difficult, if not impossible. The aim is simply to provide insights into the contribution of a business organisation to the society. The whole process therefore is called Contribution Measurement. However ‘measurement’ here refers to the broader meaning of the word and is not restricted to numerical measurement. Social Implications: One of the major benefits of 'contribution measurement' is to recognise and understand how the performance of an organisation may affect the society.

Originality/Value: This is the first attempt to go farther than what is known as sustainable performance measurement. This is done by removing the restrictions that are normally imposed by the concepts of 'numerical measurement' and 'importance of balanced measures'. The work is an initiative and a first step for a breakthrough research in the area of performance measurement.
Original languageEnglish
Number of pages11
Publication statusPublished - 25 Jun 2014
EventPMA 2014 - Aarhus Universitet, Aarhus, Denmark
Duration: 25 Jun 201427 Jun 2014
http://icoa.au.dk/conferences-workshops/pma-2014-conference/

Conference

ConferencePMA 2014
CountryDenmark
CityAarhus
Period25/06/1427/06/14
Internet address

Keywords

  • performance
  • measurement
  • network
  • social
  • environment
  • balanced scorecard
  • contribution measurement

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  • Research Output

    The process of managing performance: an inductive model

    Mackay, D., Bititci, U., Ackermann, F., Ates, A., Bourne, M., Davies, J., Gibb, S., MacBryde, J. C., Maguire, C., Shafti, F. & Van Der Meer, R. B., Jul 2008.

    Research output: Contribution to conferencePaper

    Teaching and learning of performance measurement in OR/MS degrees

    Wisniewski, M. & Shafti, F., 1 Nov 2003, In : MSOR Connections. 3, 4, p. 39-41 3 p.

    Research output: Contribution to journalArticle

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    Cite this

    Shafti, F. (2014). Beyond performance measurement: contribution measurement. Paper presented at PMA 2014, Aarhus, Denmark.