Experimenting lean dynamic performance management systems design in SMEs

The purpose of this paper is to frame the potential benefits of lean dynamic performance management (PM) systems for small and micro-enterprises. Such systems may exploit the entrepreneur’s tacit knowledge and build on managerial competencies, by incorporating individual attributes into organisational routines.

The paper suggests the use of insight models based on the combination of lean PM tools and system dynamics (SD) modelling. Based on a number of exemplary cases, the paper discusses the potential benefits of these models, in respect to four specific contexts: artisan, new company start-up, established firm and micro-giant company. Related to such contexts, the research identifies: needs or priorities, and obstacles or impediments to pursuing business survival and development.

The conceptual framework discussed in the paper discloses a quite original empirical basis to outline lean dynamic PM systems that may provide entrepreneurs with a set of key-performance drivers that help them to prioritise action, in each of the four analysed contexts.

Growing interest in adopting lean PM models in small and micro-firms appears in the recent PM literature with research highlighting strengths and shortcomings. However, few attempts have been produced to overcome such limitations, while the adoption of SD is relatively new in supporting lean PM system design.