Scoring strategic performance: a pragmatic constructivist approach to strategic performance measurement
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Scoring strategic performance: a pragmatic constructivist approach to strategic performance measurement Falconer Mitchell • Lars Bra˚d Nielsen Hanne Nørreklit • Lennart Nørreklit
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Published online: 29 April 2012 Ó Springer Science+Business Media, LLC. 2012
Abstract This paper analyses the characteristics of good strategic performance that contribute to the overall performance of a successful company. We apply a framework of pragmatic constructivism in order to analyse and measure strategic performance. We use the model for performance measurement based on pragmatic constructivism for the more specific topics of measuring, assessing and analysing strategic performance as opposed to operational performance. This paper analyses the characteristics of strategic performance that successfully enhance the overall performance of the company. The purpose is to outline a framework for strategic performance measurement that can be used to guide and measure strategic leadership. The framework focuses on the concepts of coherence and coherence tracing as the basic concepts for strategic performance and thus the task for strategic performance measurement. Keywords Strategic performance Coherence Pro-active truth Learning theory of truth
F. Mitchell University of Edinburgh, 29 Buccleuch Place, Edinburgh EH8 9JS, UK L. B. Nielsen Aarhus University, Fuglesangs Alle` 4, 8210 Aarhus V, Denmark H. Nørreklit (&) Norwegian School of Economics, Hellevejen 30, 5045 Bergen, Norway e-mail: [email protected] L. Nørreklit Aalborg University, Fredrik Bajers Vej 5, 9100 Aalborg, Denmark
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1 Introduction In recent years, strategic performance measurement systems such as the balanced scorecard and the performance pyramid have attracted a lot of attention. These systems primarily focus on the implementation of all the strategic objectives in the whole organisation. Additionally, they are meant to give feedback to topmanagement for learning and improvement purposes (Kaplan and Norton 1996: 19). However, the concepts and tools for analysing these additional aspects of strategic performance seem abstract and under-developed in these frameworks. They tend to focus on the attainment of strategic objectives at the operational level and hence to presuppose that the strategy that was formulated by top management is right. Thus, they cannot assist in improving the basic strategic goal setting. The purpose of this paper is to develop a measurement tool for evaluating the strength and quality of the strategy. It describes a conceptual framework for strategic performance measurement that can be used as a tool for leadership and for leadership evaluation. The measurements are not only a means for assessing leadership performance but also an instrument for providing constructive feedback and enabling leadership to improve strategic performance practice. To characterise the role and contribution of strategic performance, it is necessary to distinguish between strategic performance and other factors that influence organis
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