Emergent strategy and the measurement of performance: The formulation of performance indicators at the micro-level

Abstract

This paper presents some evidence on an aspect of the design of a strategic control system, at the micro level within a single organisation. The research we report used an ethnographic approach to provide an understanding of strategy formulation. Our aim is to contribute to an area of literature which is of increasing significance but relatively underdeveloped in terms of the application of, in depth, field research techniques. We take an intensive look at the manner in which performance measures are formulated, at the micro level, within a single organization. The paper presents, as an in-depth case analysis, the experience of a fisheries holding company in New Zealand. The paper recounts the experiences of managers within the organization of the process of identification of such things as, critical success factors and key performance indicators (KPI’s) and, more broadly the formulation of a strategic performance measurement system. A number of themes emerged during the research including as apparent reluctance to reduce a reliance on financial measures, the significance of functional boundaries which resulted in disagreements and misunderstandings, the importance of communication and the problems resulting from some managers apparently seeking to avoid attempts to fix responsibility.