Designing a model for profiling organizational performance management

Purpose – The purpose of this paper is to design and test a model for analyzing organizational performance management (PM) practices. Design/methodology/approach – This study follows the design science approach. Variables affecting the status of PM are reviewed and classified based on existing literature. These variables are analyzed and a compact set of critical variables are chosen to represent PM maturity. Designed model is implemented in practice as a survey receiving 271 responses, and tested by using both quantitative and qualitative approach. Findings – The survey data are utilized in the development of four distinct PM maturity profiles. The empirical results provide understanding on the current PM maturity level and common development targets in Finnish organizations. Research limitations/implications – External validity of the research is compromised by the context and respondent group. More in-depth qualitative studies could provide more understanding on the causes of presented findings. Practical implications – The proposed model offers best practices to develop PM and identifies variables crucial to create satisfaction toward PM. The presented profiles also help in evaluating the status of PM in the organization examined. Originality/value – The originality of the new model relates to its balance between rigor and relevance. In addition, the study is one of the first attempts to widely apply PM maturity models in practice. A distinctive feature of this study is the maturity profiles which are built upon empirical data.