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Developing a Performance Management System Using Soft Systems Methodology: A Chinese Case Study

Liu, Wenbin, Meng, Wei, Mingers, John, Tang, Ning, Wang, Wei (2012) Developing a Performance Management System Using Soft Systems Methodology: A Chinese Case Study. European Journal of Operational Research, 223 (2). pp. 529-540. ISSN 0377-2217. (doi:10.1016/j.ejor.2012.06.029) (KAR id:29894)

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The economic crisis created major problems for a successful, hi-tech Chinese company – Tonsan. They already had in place a performance management system based around the balanced scorecard which worked successfully in times of growth and high demand. However, with the world downturn they suddenly found that their current system was not able to cope with the demands placed on it. The authors were called in and decided to design a new, strategic performance management system to overhaul all the key business processes. The approach taken to develop the PM system was based around soft systems methodology (SSM), a well established systems-based approach to problem solving and organizational design. The methodology progressed from the development of key strategic objectives (using the BSC and strategy maps), through a structured decomposition of necessary organizational activities, the construction of key performance indicators, the specification of targets, to communication and future planning. It involved significant levels of participation and communication throughout the organization. The results were judged by senior management to have been very successful, and the company has grown significantly.

Item Type: Article
DOI/Identification number: 10.1016/j.ejor.2012.06.029
Uncontrolled keywords: Productivity and competitiveness; Performance management; Soft Systems Methodology; 3E methodology
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculties > Social Sciences > Kent Business School
Faculties > Social Sciences > Kent Business School > Management Science
Depositing User: John Mingers
Date Deposited: 17 Jul 2012 13:27 UTC
Last Modified: 06 May 2020 03:07 UTC
Resource URI: (The current URI for this page, for reference purposes)
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