Transformation in the defence sector: the critical role of performance measurement

This paper presents a longitudinal case study of strategic transformation in a complex organisation – Her Majesty's Naval Base (Clyde). The research identifies nine Critical Success Factors from the change management literature and analyses their position in driving the transformation. Findings suggest that many of the success factors suggested by the literature were not present during the transformation. However the presence of a robust performance management system within the organisation resulted in significant progress towards the strategic goals despite the absence of other factors. This paper demonstrates how strategic change can be accomplished by the use of more operational toolsets such as performance management systems.