Business Performance Measurement: Theory And Practice

This page intentionally left blank Business performance measurement The field of performance measurement has evolved rapidly in the last few years with the development of new measurement frameworks and methodologies, such as the balanced scorecard, the performance prism, economic value added, economic profit, activity-based costing, and self-assessment techniques. This multi-disciplinary, international book draws together the key themes to provide an upto-date summary of the leading ideas in business performance measurement, theory, and practice. It includes viewpoints from a range of fields including accounting, operations management, marketing, strategy, and organizational behavior. The book will appeal to graduate students, managers, and researchers interested in performance measurement, whatever their discipline. Andy Neely is Director of the Centre for Business Performance at Cranfield School of Management and Professor of Operations Strategy and Performance and has been researching and teaching in the field of business performance measurement since the late 1980s. He was chair of the international academic conference on performance measurement in 1998, 2000 and 2002 and has authored over 100 books and articles on the subject, including Measuring Business Performance, The Economist Books, 1998. He has consulted to and worked with numerous organizations including 3M, Accenture, British Airways, DHL, KPMG and Rolls Royce Aerospace. Business performance measurement Theory and practice Edited by Andy Neely Cranfield School of Management, UK           The Pitt Building, Trumpington Street, Cambridge, United Kingdom    The Edinburgh Building, Cambridge CB2 2RU, UK 40 West 20th Street, New York, NY 10011-4211, USA 477 Williamstown Road, Port Melbourne, VIC 3207, Australia Ruiz de Alarcón 13, 28014 Madrid, Spain Dock House, The Waterfront, Cape Town 8001, South Africa http://www.cambridge.org © Cambridge University Press 2004 First published in printed format 2002 ISBN 0-511-04157-8 eBook (netLibrary) ISBN 0-521-80342-X hardback Contents List of contributors Preface Part I Performance measurement – functional analyses 1 Measuring performance: The accounting perspective page ix xi 3 David Otley 2 Measuring performance: The marketing perspective 22 Bruce Clark 3 Measuring performance: The operations perspective 41 Andy Neely and Rob Austin 4 Finding performance: The new discipline in management 51 Marshall W. Meyer Part II Performance measurement – theoretical foundations 5 A conceptual and operational delineation of performance 65 Michel Lebas and Ken Euske 6 When it should not work but does: Anomalies of high performance 80 Rob Austin and Jody Hoffer Gittell 7 D