Business performance measurement: Does size matter?

Abstract

Risk reduction remains a management challenge. Research shows that business performance measurement is a popular tool to reduce risk, although applied differently across organizations. This study aimed to assess the influence of organizational size on performance measurement of market-driven organizations. A web-based survey was conducted whereby managers indicated their satisfaction with performance measurement practices, the regularity with which performance measurements were collected and the importance attached to performance measures collected. Respondents were fairly satisfied with existing performance measures, irrespective of organization size. No significant difference between organization size and respondents perception about the value placed by top management with regards to performance measurement was found. The study concludes that managers can make decisions that could ultimately reduce risk when they utilize proper performance measures.