Survival of the fittest: measuring performance in a changing business environment

The design and use of performance measurement systems has received considerable attention in recent years. Many organizations have redesigned their measurement systems to ensure that they reflect their current environment and strategies. But how to maintain them over time? Increasingly, the environment in which organizations compete is dynamic and rapidly changing, requiring constantly changing strategies and operations that reflect these changing circumstances. Despite this, few organizations appear to have the internal culture and systematic processes in place to manage their performance measurement systems in order to ensure that they continue to reflect their environment and strategies. This article presents case study research that investigates what actions organizations can take to ensure that their measurement systems change over time.