Is your performance measurement system truly effective? This paper delves into the crucial process of designing robust performance measurement systems, moving beyond the specifics of individual metrics to address core strategic concerns. Recognizing the long-acknowledged importance of performance measurement across diverse functional disciplines, this research seeks to integrate this fragmented knowledge base into a coherent framework. The study offers a comprehensive review of existing literature to pinpoint key design issues. It critically examines the various aspects of performance measurement systems, aiming to provide a holistic perspective for academics and practitioners alike. By focusing on the design process, the authors underscore the importance of a well-structured approach to performance management, ensuring that critical issues are effectively identified and addressed. Ultimately, this research serves as a springboard for future investigations, providing a solid foundation for a research agenda that addresses the complexities of performance measurement system design. The proposed agenda seeks to guide future studies in the field, helping organizations create systems that accurately reflect their performance and drive strategic success. This comprehensive approach has applications in personnel management, industrial management, and overall business strategy.
Published in the _International Journal of Operations & Production Management_, this paper aligns with the journal's focus on industrial management and operational efficiency. By addressing the design of performance measurement systems, the paper contributes to the journal's exploration of best practices in production and management. Its examination of literature and focus on creating a coherent methodology are valuable for the journal's readership.