Beyond words: Testing alignment among inter-organizational performance measures

Purpose: This paper seeks to measure in a quantitative way the degree of alignment among a set of performance measures between two organizations. Design/methodology/approach: This paper extends Venkatraman's test of coalignment to assess the alignment of a set of performance measures governing a contractual inter-organizational relationship. The authors applied the test and present coefficients of misalignment across three sets of measures: those used by a service provider involved in the research, those used by customers contracting the services, and those documented in 11 contracts studied. Findings: Results confirmed a high degree of alignment between target and actual operational performance in the contracts. The alignment of customers' financial objectives and contracts' operational metrics was low. Calculations show poor alignment between the objectives of the provider and the contribution received from the contracts. Research limitations/implications: Some limitations of the conclusions include the small sample of contracts used in the calculations. Further research should include not only actual contracts, but also failed ones. Practical implications: It is possible that misaligned goals, represented in misaligned performance measures, lead to tensions in intra-firm relationships. If these tensions are not addressed properly the relationship could be unstable or terminated prematurely. This method of measuring alignment could detect early potential dangers in intra-firm relationships. Originality/value: This paper extends Venkatraman's test of coalignment to assess the alignment of a set of performance measures governing a contractual inter-organizational relationship. Management researchers and business professionals may use this methodology when exploring degrees of alignment of performance measures in intra-functional and inter-firm relationships. © Emerald Group Publishing Limited.

IS/IT resources and business value: Operationalization of an information oriented framework

Several studies have highlighted the importance of information and information quality in organisations and thus information is regarded as key determinant for the success and organisational performance. In this paper, we review selected contributions and introduce a model that shows how IS/IT resources and capabilities could be interlinked with IS/IT utilization, organizational performance and business value. Complementing other models and frameworks, we explicitly consider information from a management maturity, quality and risk perspective and show how the new framework can be operationalized with existing assessment approaches by using empirical data from four industrial case studies. © 2012 Springer-Verlag.

An information oriented framework for relating IS/IT resources and business value

Several studies have highlighted the importance of information and information quality in organisations and thus information is regarded as key determinant for the success and organisational performance. At the same time, there are numerous studies, frameworks and case studies examining the impact of information technology and systems to business value. Recently, several studies have proposed maturity models for information management capabilities in the literature, which claim that a higher maturity results in a higher organizational performance. Although these studies provide valuable information about the underlying relations, most are limited in specifying the relationship in more detail. Furthermore, most prominent approaches do not or at least not explicitly consider information as important influencing factor for organisational performance. In this paper, we aim to review selected contributions and introduce a model that shows how IS/IT resources and capabilties could be interlinked with IS/IT utilization, organizational performance and business value. Complementing other models and frameworks, we explicitly consider information from a management maturity, quality and risk perspective. Moreover, the paper discusses how each part of the model can be assessed in order to validate the model in future studies.

Unified modelling in support of organization design and change

The aim of this research is to provide a unified modelling-based method to help with the evaluation of organization design and change decisions. Relevant literature regarding model-driven organization design and change is described. This helps identify the requirements for a new modelling methodology. Such a methodology is developed and described. The three phases of the developed method include the following. First, the use of CIMOSA-based multi-perspective enterprise modelling to understand and capture the most enduring characteristics of process-oriented organizations and externalize various types of requirement knowledge about any target organization. Second, the use of causal loop diagrams to identify dynamic causal impacts and effects related to the issues and constraints on the organization under study. Third, the use of simulation modelling to quantify the effects of each issue in terms of organizational performance. The design and case study application of a unified modelling method based on CIMOSA (computer integrated manufacturing open systems architecture) enterprise modelling, causal loop diagrams, and simulation modelling, is explored to illustrate its potential to support systematic organization design and change. Further application of the proposed methodology in various company and industry sectors, especially in manufacturing sectors, would be helpful to illustrate complementary uses and relative benefits and drawbacks of the methodology in different types of organization. The proposed unified modelling-based method provides a systematic way of enabling key aspects of organization design and change. The case company, its relevant data, and developed models help to explore and validate the proposed method. The application of CIMOSA-based unified modelling method and integrated application of these three modelling techniques within a single solution space constitutes an advance on previous best practice. Also, the purpose and application domain of the proposed method offers an addition to knowledge. © IMechE 2009.