Consistency of strategic and tactical benchmarking performance measures : A perspective on managerial positions and organizational size

Purpose – The purpose of this paper is to examine the consistency of benchmarking performance measures and to investigate the impact of organizational size and managerial positions on the deployment of strategic and tactical benchmarking performance measures. Design/methodology/approach – A set of eight hypotheses was used to examine the consistency of the benchmarking performance measures and the impact of organizational size and managerial positions on selection of strategic and tactical benchmarking performance measures. A questionnaire-based survey data were used to test the hypotheses. The target population was manufacturing firms in Midwestern USA; the sample covers organizations in a variety of industries. Out of 91 completed surveys received, 84 surveys were usable resulting in a response rate of 17 percent. Findings – The paper found evidence of misalignment between organizational goals and objectives and proactive development of organizational core capabilities. The result also indicates that managers with high-level positions as well as managers from large organizations placed higher emphasis on strategic benchmarking performance measures. Research limitations/implications – Research is general and not industry specific. Practical implications – Effective performance measurement is a critical element of organizational success. It requires a thorough understanding of organizational strategy and deployment of the strategy into consistent sub-strategies. Originality/value – For effective benchmarking, managers must develop a complete understanding of their own business strategy and choose long-term and short-term benchmarking performance measures that are consistent with organizational strategy.