Design and Implementing a Performance Measurement System in SMEs: a bottom up approach

In the last few years, design and implementing performance measurement system (PMS) have been recognized as being among the main factors influencing the effectiveness of managerial system and many structured methodologies have been proposed that consider both hierarchical and process views. PMS is often described as a key driver of improvement in managerial capability, however, the methodologies currently available rarely take into account company size and they are not able to meet the need for managerial development in small and medium enterprises (SMEs). Even though some researchers have recently begun to investigate both the characteristics of the PMS used by SMEs and the factors influencing PMS adoption (Bititci et al., 2000; Garengo and Bititci, 2007), study of PMS design and implementation processes is still largely neglected (Channel et al., 2000; Hudson et al., 2001). This paper aims to contribute to filling the research gap in performance measurement system studies. The purpose is to define an innovative methodology to support the effective introduction of PMS in small and medium enterprises