This article addresses a fundamental question: How can strategic performance measurement systems remain effective in dynamic environments, and how can they support strategic alignment without constraining managerial action?
The article claims that traditional, stable performance measurement systems are ill-suited to dynamic contexts. Instead, it argues that strategic performance measurement systems must be designed to be flexible and adaptable, capable of evolving as strategic priorities and operating conditions change.
The central argument is that effective dynamic SPMSs must balance empowerment and alignment. Managers need discretion and ownership over performance measures in order to respond to emerging challenges, while the system must still provide a shared strategic direction. The article further argues that subjectivity is a necessary feature of such systems, enabling contextual interpretation rather than mechanical target tracking.
Reference:
Kolehmainen, K. (2010). Dynamic Strategic Performance Measurement Systems: Balancing Empowerment and Alignment. Long Range Planning, 43(4), 527–554.
