The ubiquitous technology distraction in today’s business landscape and the significance of intangible resources such as data analytics deemed the traditional performance measurement system inadequate. The focus on short-term financial indicators is longer enough if businesses are to compete in the marketplace (Chenall & Langefiled-Smith, 2007).
The Balanced Scorecard (BSC) created by Kaplan and Norton in the early 1990s was developed to extend the performance measurement metrics to include skills and competencies to address the needs of emerging business models.
Today, the Strategic Performance Measurement Systems (SPMS) caught the attention of most modern enterprises to gauge their business standing among their competitors. Simply put, SPMS, is a performance measure that includes financial and nonfinancial measurements to operationalize strategic objectives.
For this academic paper, you are required to research the topic of SPMS.
Synthesize and not address it as Q & A, the following touchpoints:
- Discuss the shortcoming of the traditional performance measurement system.
- Discuss why the traditional performance measurement system worked well during the industrial revolution and not now.
- Besides BSC, discuss other SPMS widely adopted and implemented by businesses today.
Analysis, Comments, or Suggestions
- In this portion, provide an analysis of SPMS. Its intended application, effectiveness, or shortcomings as performance measurements according to your research and not according to your opinion. Here you can find articles that cite companies’ actual application of SPMS and their experience.
Comment or suggest what improvements could make SPMS more robust or more effective based on your research
For your conclusion, you have to address below with your research findings.
Given the widespread adoption and use of SPMS, the actual benefits of SPMS have received considerable attention from researchers.
- Conclude your paper based on your research findings (crystalizing the analysis portion) if SPMS has conclusive evidence of actual benefits.
- Or, if you did not find any articles to support the actual benefits, you can also conclude it with its perceived or intended benefits.