Towards using organizational measurements to assess corporate performance

Abstract

Purpose

The purpose of this paper is to address the need for alternative measures of financial performance that can provide a real time indication of what is actually happening in organizations.

Design/methodology/approach

The paper describes the framework, the empirical research that has been conducted to assess its validity, and the measurement tools that have been developed.

Findings

The proposed model identifies the “key drivers” of organizational and financial success. However, if there is a lack of a sufficient fit between the level of “strategic development of an enterprise” and its) then there is disequilibrium. There are identifiable symptoms of this equilibrium or disequilibrium called “growing pains,” which can be measured by an instrument developed called “The Survey of Growing Pains.”

Practical implications

The proposed measures assess operational risk, which can be used under “Sarbanes‐Oxley.” The framework and measurement tools have been used by differing companies in strategic planning and performance management. It provides an alternative concept of a “balanced scorecard.”

Originality/value

The paper's contribution is in applying research from the field of organizational development to help develop a new set of measures for monitoring performance in real time.

Citation

Flamholtz, E.G. (2009), "Towards using organizational measurements to assess corporate performance", Journal of Human Resource Costing & Accounting, Vol. 13 No. 2, pp. 105-117. https://doi.org/10.1108/14013380910968629