Defining and measuring alignment in performance management

Purpose – The purpose of this paper is to develop an operational definition of alignment within the context of a performance measurement and management system in order to create a measurement model that can be used in survey‐based research, particularly under conditions of dramatic strategic change. Design/methodology/approach – Data are collected using an in‐depth case study and analyzed using the methods of grounded theory development. Particular attention is given to multi‐level analysis within an organisation. Findings – Alignment must be assessed with a multi‐dimensional model that looks beyond goals and performance. Distinctions must be made between goals and processes and between intrinsic definitions of alignment and their cultural context. Research limitations/implications – The research was conducted within one major organisation that was undergoing a strategic shift from process efficiency to product innovation. Work by other researchers suggests that the findings may be more broadly generalisable, but further investigation remains to be done. Practical implications – The ability to maintain alignment through a period of transition is a basis of dynamic capabilities. It is found that certain aspects of performance measurement and management must be de‐emphasised during these transitions. Originality/value – By using grounded theory development, this study results in a criterion‐free measurement model of alignment that represents an operational definition of the construct.