Strategic Performance Measurement Systems (SPMs)

Table Of Contents

· Introduction……………………………………………………..1

· Balanced Scorecard System (BSC)…………………………….1-2

· Implementation of Balanced Scorecard in SMEs…………….3

Strategy Destination…………………………………………….3

Perspectives……………………………………………………..3-4

Measures ………………………………………………………5-6

· Challenges faced and possible recommendations for overcoming

it…………………………………………………………………7-8

· Limitations of BSC…………………………………………….8-10

· Conclusion………………………………………………….......10

· References…………………………………………………….10-12

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Introduction

The progression of the Small to Medium Enterprises (SMEs) has been recognized for

the success of widespread development purposes which includes poverty mitigation,

advancement of democratic societies and economic development. (Henriques n.d). For

sustainable and completive environment it is necessary for organizations to measure the

how the organizations function.. The introduction of Strategic Performance

Measurement Systems (SPMs) has been identified as the effective strategy

implementation which measures past actions effectively through investigation and

analysis of appropriate data which translates into a diverse pattern of strategic decisions.

Traditional organization performance measurement systems analyses the financial

aspect. Due to globalisation, competition has increased both in the local and

international markets. This gives a clear view of organizational capacity in today’s

business markets. Besides in order to succeed in this dynamic environment, it is

essential for companies to associate with SPMs to the organisational strategy.

Organizations must monitor whether customer satisfaction is met and whether the cost

is under control. SPMS improves development but creates a significant ri...

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