Managing without measuring: A study of an electricity distribution company

Purpose: The purpose of this paper is to present an exception to the common belief "If you can't measure it, you can't manage it". It aims to show how in certain situations particular practices, attitudes and cultures can remove the need for individual performance measurement. Design/methodology/approach: First, the paper identifies the usual roles of performance measurement in managing individual employees as described by control and motivation theorists. Second, it identifies a market-leading organisation where managers deliberately refuse to use their top-level performance measurement system to manage the performance of individual employees. A case study is carried out to test what non-measurement mechanisms fulfil the roles of individual performance measurement in this organisation. Findings: Building on situations observed at this company, a set of possible characteristics of companies that do not require formalised individual performance measurement systems in order to achieve high performance standards is put forward. Practical implications: Managers should not always assume that individual performance measurement is the only way to achieve excellent performance. This study shows that, by granting responsibilities and providing appropriate support, managers can channel workers' enhanced motivation towards meeting wider organisational goals. Originality/value: This work broadens the understanding of how excellent performance can be achieved. It shows that excellence can be achieved through practices based on shared values linked to motivation, trust, and a common sense of mission, without the need to install individual performance measurement systems based on cybernetic principles. © Emerald Group Publishing Limited.

Shortening the decision distance: Selecting decision aids for improved technology investment performance

Deciding which technology to invest in is a recurring issue for technology managers, and the ability to successfully identify the right technology can be a make or break decision for a company. The effects of globalisation have made this issue even more imperative. Not only do companies have to be competitive by global standards but increasingly they have to source technological capabilities from overseas as well. Technology managers already have a variety of decision aids to draw upon, including valuation tools, for example DCF and real options; decision trees; and technology roadmapping. However little theory exists on when, where, why or even how to best apply particular decision aids. Rather than developing further techniques, this paper reviews the relevance and limitations of existing techniques. This is drawn from an on going research project which seeks to support technology managers in selecting and applying existing decision aids and potentially in the design of future decision aids. It is intended that through improving the selection of decision aids, decision performance can be increased, leading to more effective allocation of resources and hence competitive advantage. (c) 2006 PICMET.