Performance plumbing: Installing performance management systems to deliver lasting value

Purpose - The purpose of this paper is to explore the concept of performance plumbing, arguing that too often performance management systems in organisations are not correctly installed. Without the appropriate plumbing, performance management systems do not drive organisational change and improvement. Design/methodology/approach - The paper draws on the consultancy experiences of two of the authors, as well as the research of the third. Specific case examples are provided throughout the paper to illustrate the points being made. Findings - The paper argues that the key elements of a plumbed-in performance management system are: performance architecture; performance insights; performance focus; and performance action. Taken together, these four elements provide the necessary plumbing to enable performance management systems to deliver real value. Research limitations/implications - The paper draws on the experience of the authors, rather than a formally designed piece of research. The ideas presented in the paper would therefore benefit from further investigation and testing. Originality/value - The paper will be valuable to scholars and practitioners interested in ensuring that performance management systems deliver lasting value. © Emerald Group Publishing Limited.

Steering manufacturing firms towards service business model innovation

Increasingly, manufacturing firms are turning to services as a new way of creating and capturing value. Despite its potential benefits, many new product-service providers struggle to deploy service activities effectively, not least because they fail to refect the presence of service activities in their performance management systems. This article reports the results of an in-depth case study, which examines how manufacturers can steer the transition towards services. It shows that manufacturing firms need to emphasize two separate but related dimensions of the market performance of service activities: "service adoption," refecting the proportion of customers who purchase the manufacturer's services; and "service coverage," signaling the range of service elements or the comprehensiveness of the service contract that customers opt for. These two indicators, refecting service market performance, should be supplemented with a "complementarity index" designed to disclose whether the relationship between products and services is reinforcing or substitutive. When combined, these indicators allow manufacturing firms to deploy a service-based business model in an integrated and sustainable manner. © 2013 by The Regents of the University of California. All rights reserved.