The role of performance measurement systems within global organisations

This research report explores the role of performance measurement systems (PMS) in integrating global organisations. To this aim, the research combines insights from current debates on global organisations with the empirical findings of a series of case studies of well known global organisations, that provide a snapshot of how real companies deal with issues of performance measurement, governance and integration. After introducing the main goals and research methods in chapter 1, chapter 2 analyses the main topics of the research; combining insights from current debates on PMS and the integration and governance of global organisations, with illustrations of practices used in the case study companies. In particular, section 2.1 discusses the notion of integration and the main integrating strategies which are being used by global organisations. The emerging integrating strategies of global organisations are then discussed in section 2.2. The next section (section 2.3) discusses the role of PMS in integrating culture within global organisations. Section 2.4 proposes an integrated governance framework which combines issues of compliance with company rules and external regulations (corporate governance), with mechanisms to achieve, measure and control organisational performance (measurement-based governance), along with knowledge management and cultural integration (knowledge-based governance). In this context, a key role can be played by the CFO and other members of the finance function; working along with other managers in the organisation, they can integrate the three dimensions of governance by managing conformance, performance measurement and knowledge management through the creation of a common language of performance measurement. Such a role is debated and discussed in section 2.5. Finally, chapter 3 summarises the main features of the Report.