Evolution of the performance measurement system in the Logistics Department of a broadcasting company: An action research

This paper aims to present the empirical findings and lessons learnt from an action research on the evolution of the performance measurement system (PMS) for the Logistics Department of a broadcasting company. The development covers the procedure rather than the structure of PMS offering a conceptual procedural framework with information and insights on how to design, implement, use and assess a PMS, addressing an important gap identified in the literature. The entire research effort lasted almost two and a half years, involving researchers from academia and practitioners from the company. In the end, the main findings are (i) the critical, important and different roles played by top managers during the change; (ii) the critical and important role also played by employees; (iii) the trade-off between the pace of implementing new performance measures and data quality in terms of reliability and availability; and (iv) the use and review of the new PMS has led to improvements in people׳s behaviour, development of organisational capabilities and increased performance results. While the second and fourth findings are not a surprise and corroborate the literature, the first and third findings shine new light on previous research findings, broadening the understanding of the role of top managers and the importance of data reliability in implementing new performance measures. Moreover, the proposed conceptual procedural framework with a life cycle approach contributes to filling an academic literature gap and can provide guidance for practitioners in similar undertakings.