Adding value to performance measurement by using system dynamics and multicriteria analysis

Tese de dout., Filosofia, Department of Management Science, University of Strathclyde, 2004

Measuring performance either formally or informally is a common practice in most organisations. It is well established that performance measurement plays a critical role in organisations, signalling how well they are succeeding in achieving their objectives and identifying where improvement efforts are required. In an attempt to respond to the assessment needs of organisations, several performance measurement frameworks have been developed over the years. However, in spite of the remarkable progress that has been made in the development of better integrated, balanced and strategically driven performance measurement frameworks, there are issues which deserve further research if these frameworks are to provide a stronger basis from which to manage effectively for improvement. Informed by the literature review and conceptual experimentation, this thesis aims to show that the use of system dynamics (SD) and multiple criteria decision analysis (MCDA), individually and in an integrated manner, can address some of these issues and bring new insights to inform and support the different stages of the performance measurement and management process. To this purpose, a framework incorporating the integrated use of SD and MCDA is suggested and its conceptual coherence and practical relevance is discussed. The conceptual coherence is illustrated by a simple but realistic application in the health care sector. The practical relevance of the framework is assessed in an organisational setting, taking the form of three in-depth case studies. Several conclusions are drawn regarding the potential role of SD and MCDA to add value to the performance measurement and management process, including an assessment of their suitability, limitations, and implementation issues associated with this particular context.