Productizing Performance Measurement System for Small and Medium-Sized Enterprises

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School of Business | Master's thesis

Date

2017

Major/Subject

Mcode

Degree programme

Accounting

Language

en

Pages

70

Series

Abstract

This study strives to formulate a performance measurement system (PMS) for small and medium-sized enterprises (SMEs) and to offer guidelines for its productization. To achieve that end, a set of requirements for successful PMS for SMEs are derived from the literature, confirmed empirically and summarized into a outlining of a product. Additionally, this study provides a roadmap to productizing this performance measurement system. The evidence from previous literature suggests that a successful PMS for SMEs has following qualities: it is able to assist organization in strategy work, it provides a balanced view of the organization, it enables recognizing and incorporates causal relationships between results and determinants, is dynamically adaptable, clear and simple to operate, accounts for stakeholder perspective and is developed with and for its users. To productize such a system successfully one has to recognize a need for such a service, outline the service, pilot it, concretize it and finally collect feedback and develop it further. The study was conducted as a qualitative case study for a small Finnish company providing financial administration services. The empirical material for the study consisted of nine interviews within the case company and with the representatives of their clients. The data from the interviews was analyzed with thematic coding and complemented with financial statements and other readily available material. Based on the empirical and theoretical research, it is suggested that small and medium-sized enterprises base their performance measurement in proper budgeting tool. It can be stated that budgeting, when implemented properly, meets the qualities of successful performance measurement system for SMEs and can be employed to achieve multiple ends. Budgeting tool can be complemented with proper key performance indicators, forecasting tools and strategy development consultation to achieve even more comprehensive performance measurement.

Description

Thesis advisor

Malmi, Teemu

Keywords

performance measurement, small and medium-sized enterprises, productization, performance measurement system, expert services, key performance indicator

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