Overcoming the specific performance measurement challenges of knowledge‐intensive organizations

The purpose of this paper is to identify practical ways to overcome the specific performance measurement challenges of knowledge‐intensive organizations. By reviewing performance measurement, service management and human resources management literature the paper recognizes two aspects that are crucial for the success of knowledge‐intensive organizations: the performance and well‐being of individual knowledge workers and the ability to provide value for the customer. The authors evaluate three measurement solutions for measuring these aspects, in three empirical settings.

Qualitative case approach, carried out as an action research, is used with empirical data obtained through interviews, workshops and analysis of documentation related to measurement systems. The empirical study consists of three case studies where two main phases were carried out: investigating the status of existing measurement practices; and development and evaluation of new measurement approaches and tools.

The results of the evaluation of proposed measurement approaches provide understanding of their potential in different workplaces. Eventually, this potentially supports the managers of knowledge‐intensive organizations in developing not only the measurement practices but also the overall performance of their organizations.

As the key academic contribution, the study provides new understanding on the potential of selected measurement approaches in overcoming the specific performance measurement challenges in knowledge‐intensive organizations. The results take into account the perspectives of an individual knowledge worker, a customer and an organization as a whole. In many previous studies, the main focus has been solely on the organizational perspective.