Business Performance Measurement: Theory and Practices

By: Andy Neely, Editor

Cambridge University Press

This book provides a wealth of information about the theory and practice of one of the most important and yet least understood dimensions of organizational operations: performance measurement. By now most decision-makers have realized the truth of the observation that “you can’t manage what you can’t measure.” However, few of them possess the skills (not the talent nor the desire) to do that well because it requires a solid understanding of how to complete functional analyses, based on theoretical foundations, within frameworks by using methodologies which have practical implications, guided and informed by specific measures even when having to accommodate emerging trends and issues. Re-read that last sentence and you have within it an explanation of how the material in this book is so carefully organized.

It remains for each reader to determine (a) which material is most relevant to his or her own needs and interests, and (b) the nature and extent of how this wealth of information and counsel can be effectively implemented within his or her own organization. Hence the importance of the four essays which comprise Part IV:

  • “What really goes on in the name of benchmarking?” (David Mayle, Matthew Hinton, Graham Francis, and Jacky Holloway)
  • “Measuring market performance: Which way is up?” (Tim Ambler and Flora Kokkinaki)
  • “Loosely coupled performance measurement systems” (Thomas Ahrens and Chris Chapman)
  • “Redefining Government performance” (Ken Ogata and Rich Goodkey)

Make no mistake about it: This is a daunting book which deserves, indeed requires, but will generously reward more than one careful reading and frequent revisits. Chapter 10 is one of the most thought-provoking because Elsbeth Murray and Peter Richardson explain the importance of those whom they characterize as “the critical few [who are] first among equals as parameters of strategic effectiveness.” Of course, other readers will find other chapters of greater interest and value.

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