Performance plumbing: installing performance management systems to deliver lasting value

The purpose of this paper is to explore the concept of performance plumbing, arguing that too often performance management systems in organisations are not correctly installed. Without the appropriate plumbing, performance management systems do not drive organisational change and improvement.

The paper draws on the consultancy experiences of two of the authors, as well as the research of the third. Specific case examples are provided throughout the paper to illustrate the points being made.

The paper argues that the key elements of a plumbed‐in performance management system are: performance architecture; performance insights; performance focus; and performance action. Taken together, these four elements provide the necessary plumbing to enable performance management systems to deliver real value.

The paper draws on the experience of the authors, rather than a formally designed piece of research. The ideas presented in the paper would therefore benefit from further investigation and testing.

The paper will be valuable to scholars and practitioners interested in ensuring that performance management systems deliver lasting value.