Enterprise performance measurement system : metric design framework and tools

Existing metric selection methodologies and performance measurement frameworks provide practicing managers with good checklists and tools to evaluate and design their enterprise performance measurement systems (EPMS) and metrics. However, these methodologies and frameworks do not delve deep enough into the operational aspects of EPMS and metrics. This work addresses this research gap by proposing a practical Metric Design Framework with accompanying Metric Design Tools and a Metric Design Guide to operationalize metrics to ensure better strategic alignment, monitoring and reporting of business activities, and proactive decision-making. Singapore Technologies Aerospace Engineering Development Center (STA EDC) is the enterprise involved in action research, the research methodology used in this work. The background of STA EDC is included to provide the context and purpose. There are four major action research cycles including EPMS Ten Lenses (cycle 1), Metric Design Tools (cycle 2), Metric Building Blocks and Elements (cycle 3), and Metric Design Guide (cycle 4). The details and results for each action research cycle are discussed. In essence, the Nightingale Rhodes Enterprise Architecting Framework (NREAF) [1] serves as a starting point, where the Enterprise Architecting (EA) Ten View Elements/Lenses are modified for EPMS in cycle 1. In cycle 2, the STA EDC EPMS and metrics are evaluated using the EPMS Ten Lenses, and Metric Design Tools such as the Strategic Alignment Tool, EPMS Value Flow Map, Measurement Scope Tool, and 3x3 Info Decision Matrix are developed. Cycle 3 saw the development of the Metric Building Blocks and Metric Elements, while cycle 4 demonstrated the application of the proposed Metric Design Framework and Tools in the form of a Metric Design Guide. The proposed framework and tools are then validated with practicing managers at STA EDC. Based on the feedback and validation from practicing managers, the proposed framework and tools show great potential in terms of comprehensiveness/completeness, usability, and utility. However, the key challenge lies with implementation. Management's commitment and buy-in from various EPMS stakeholders are necessary. While minor modifications and/or additions to the proposed framework and tools are expected during implementation, the endeavor is worthwhile because a firm becomes what it measures.

Department dc:contributor.department

Massachusetts Institute of Technology. Engineering Systems Division.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2013

Author dc:creator

• Teo, Kai Siang

Advisor dc:contributor.advisor

• Deborah Nightingale and Josef Oehmen.

• Engineering Systems Division.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/79537

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/79537