New Performance Measurement Trends: Evidence from Selected Multinational Corporations

Abstract

This study seeks to examine new trends in the performance measurement system over the traditional system, how corporate organizations respond to the emerging trends, how the changes impact their businesses performance in the challenging contemporary business environment, and identify the new approaches adopted to manage the changes. To achieve this, data were collected through the deployment of case studies and analyzed content of the case studies results. As a major contribution, this study enlightens readers with new insights on performance measurement. It also provides useful guidelines for effective measurement of performance. Findings from the analysis show that traditional performance appraisals were no longer working and the business corporations are now adopting new performance measurement such as individual check-ins, team touch points, and individual development plan (IDP). The study concludes that traditional performance measurement systems such as profitability, strict working capital, revenue, volume, cash flow, return on capital employed, etc were falling short of meeting the needs of managers in a much changed business environment. It has become increasingly important for organizations to develop systems of performance measurement which reflect the growing complexity of the business environment, monitor their strategic response to this complexity.