Home   >   CSC-OpenAccess Library   >    Manuscript Information
Constructing a Tailor-made Performance Management System Supported by Knowledge Elicitation Tools and Dynamic Modeling
Wolfgang Ossadnik, Ralf H. Kaspar, Stefanie Schinke
Pages - 75 - 98     |    Revised - 01-10-2013     |    Published - 01-11-2013
Volume - 4   Issue - 4    |    Publication Date - November 2013  Table of Contents
Cause-and-effect Relationships, Expert Knowledge, Performance Management, Tacit Knowledge, Causal Maps, Strategy Maps, System Dynamics, Interview Techniques, Case Study.
For constructing a causality-based performance management system (PMS), the consideration of expert knowledge is indispensable. As this knowledge is usually not transparent or explicitly available, the process of tacit knowledge elicitation (TKE) plays an important role for a tailor-made construction of PMS, as does its operationalization in the form of a company-specific scorecard or a dynamic model. Owing to this importance, this paper develops a holistic, step by step approach for constructing and operationalizing an effective PMS using TKE such as interview techniques, as well as System Dynamics (SD) and the interaction of organization’s personnel (experts) and Management Accounting (MA). The framework is structured by a phase model in matrix form, whereby the three main steps data generation, assessment and construction are further divided by functional responsibilities on company and MA levels. For demonstration purposes, the framework is subsequently applied to a case study within the automotive industry.
CITED BY (3)  
1 Aguilar, O. G. (2021). Crowd modelling: aggregating non-expert views as a method for theorizing. International Journal of Crowd Science.
2 Kölbel, S., Ossadnik, W., & Gergeleit, S. (2017). Performance Management by Causal Mapping: An Application Field of Knowledge Management. Knowledge Management Strategies and Applications, 103.
3 Ossadnik, W. (2017). Performance Management international agierender Unternehmen als Herausforderung für die Controllinglehre und Stimulanz für deren Weiterentwicklung. In Internationale Rechnungslegung und Internationales Controlling (pp. 399-417). Springer Gabler, Wiesbaden.
1 Google Scholar 
2 CiteSeerX 
3 refSeek 
4 Scribd 
5 SlideShare 
6 PdfSR 
A. Ferreira, D. Otley. “The design and use of performance management systems:An extended framework for analysis.” Management Accounting Research, vol. 20, no. 4, pp.263-282, 2009.
A. Neely, J. Mills, K. Platts, H. Richards, M. Bourne and M. Kennerley. “Performance measurement system design: developing and testing a process-based approach.”International Journal of Operations & Production Management, vol. 20, no. 10, pp. 1119-1145, 2000.
A. Neely, M. Gregory and K. Platts. “Performance measurement system design – a literature review and research agenda.” International Journal of Operations & Production Management, vol. 5, no. 4, pp. 80-116, 1995.
A. Wyatt. “What financial and non-financial information on intangibles is value-relevant? A review of the evidence.” Accounting and Business Research, vol. 38, no. 3, pp. 217-256,2008.
A.J. DuBrin. Essentials of Management. 9th ed., Mason, Ohio: South-Western: Cengage Learning, 2011.
A.J. Scavarda, T. Bouzdine-Chameeva, S.M. Goldstein, J.M. Hays and A.V. Hill. “A methodology for constructing collective causal maps.” Decision Sciences, vol. 37, no. 2,pp. 263-283, 2006.
A.M. Hickey and A.M. Davis. “Elicitation Technique Selection: How Do Experts Do it ?”Proceedings of the 11th IEEE International Requirements Engineering Conference. Los Alamitos, CA: IEEE Computer Society Press, 2003, pp. 169-178.
A.M. Martin, A. M. and J.H. Martin. “Building a Market-Oriented Organizational Environment: An Implementation Framework for Small Organizations.” American Journal of Business, vol. 20, no. 2, pp. 44-58, 2005.
C. Bianchi and G.B. Montemaggiore. “Enhancing strategy design and planning in public utilities through “dynamic” balances scorecards: insights from a project in a city water company.” System Dynamics Review, vol. 24, no. 2, pp. 175-213, 2008.
C. Capelo and J.F. Dias. “A system dynamics-based simulation experiment for testing mental model and performance effects of using the balanced scorecard.” System Dynamics Review, vol. 25, no. 1, pp. 1-34, 2009.
C.-J. Liang and L.-C. Hou. “Dynamic connection of Balanced Scorecard applied for the hotel.” Journal of Services Research, vol. 6, no. 2, pp. 91-118, 2006.
C.D. Ittner and D.F. Larcker. “Extending the Boundaries: Nonfinancial Performance Measures” in Handbook of Management Accounting Research, vol. 3, C.S. Chapman, A.G.Hopwood and M.D. Shields, Oxford, U.K.: Elsevier, 2009, pp. 1235-1251.
D. Clinton, S.A. Webber, John M. Hassell. “Implementing the Balacned Scorecard Using the Analytic Hierarchy Process.” Management Accounting Quarterly, vol. 3, no. 3, pp. 1-11.
D.N. Ford and J.D. Sterman. “Expert knowledge elicitation to improve formal and mental models.” System Dynamics Review, vol. 14, no. 4, pp. 309-340, 1998.
D.P. Tegarden and S.D. Sheetz. “Group cognitive mapping: A methodology and system for capturing and evaluating managerial and organizational cognition.” Omega, vol. 31, no. 2,pp. 113-125, 2003.
E. Geisler. “The metrics of knowledge: Mechanisms for preserving the value of managerial knowledge.” Business Horizons, vol. 50, pp. 467-477, 2007.
G. Schreyögg and H. Steinmann. „Strategic Control: A New Perspective.” The Academy of Management Review, vol. 12, no. 1, pp. 91-103, 1987.
G.W. Sousa, L.C.R. Carpinetti, R.L. Groesbeck and E. Van Aken. “Conceptual design of performance measurement and management systems using a structured engineering approach.” International Journal of Productivity & Performance Management, vol. 54, no.5/6, pp. 385-399, 2005.
H. Akkermans, K. van Helden. “Vicious and virtuous ERP implementation: a case study of interrelations between critical success factors.” European Journal of Information Systems,vol. 11, no. 1, pp. 35-46, 2002.
H. Nørreklit, H. “The balance on the balanced scorecard – a critical analysis of some of its assumptions.” Management Accounting Research, vol. 11, no. 1, pp. 65-88, 2000.
H.A. Akkermans and K.E. van Oorschot. “A Case Study of Balanced Scorecard Development Using System Dynamics.” The Journal of Operational Research Society, vol.56, no. 8, pp. 931-941, 2005.
I. Nonaka. “The Knowledge-Creating Company.” Harvard Business Review, vol. 69, no. 6,pp. 96-104, 1991.
I.M. Newsome. “Using system dynamics to model the impact of policing activity on performance.” Journal of the Operational Research Society, vol. 59, no. 2, pp. 164-170,2008.
Institute of Management Accountants (IMA). Draft Statements on Management Accounting:Definition of Management Accounting. Strategic Finance (August): IMA, 2008.
J. Broadbent, R. Laughlin. “Performance management systems: A conceptual model.”Management Accounting Research, vol. 20, no. 4, pp. 283-292, 2009.
J. Hülle, R. Kaspar, K. Möller. “Multiple Criteria Decision-Making in Management Accounting and Control - State of the Art and Research Perspectives Based on a Bibliometric Study.” Journal of Multi-Criteria Decision Analysis, vol. 18, no. 5/6, pp. 253-265, 2011.
J. Luft and M.D. Shields. “Mapping management accounting: graphics and guidelines for theory-consistent empirical research.” Accounting, Organizations and Society, vol. 28, no.2-3, pp. 169-249, 2003.
J.E. Burge. “Knowledge elicitation tool classification.” Worcester Polytechnic Institute,Technical Report: WPI-CS-TR-98-29, 1998.
J.H. Boose and J.M. Bradshaw. “Expertise transfer and complex problems: using AQUINAS as a knowledge-acquisition workbench for knowledge-based systems.” International Journal of Man-Machine Studies, vol. 26, no. 1, pp. 3-28, 1987.
J.M. Lebas. “Performance measurement and performance management.” International Journal of Production Economics vol. 41, no. 1-3, pp. 23-35, 1995.
J.W. Forrester. Industrial dynamics. Cambridge, Mass.: Productivity Press, Wiley, 1961.
K.E. Weick and M.G. Bougon. “Organizations as cognitive maps: Charting ways to success and failure” in The thinking organization: Dynamics of Organizational Social Cognition, H.P.Sims and D.A Gioia, San Francisco: Jossey-Bass, 1986, pp. 102-135.
L. Markóczy and J. Goldberg. “A method for eliciting and comparing causal maps.” Journal of Management, vol. 21, no. 2, pp. 305-333, 1995.
L.A. Curral, R.H. Forrester, J.F. Dawson and M.A. West. “It’s what you do and the way that you do it: Team task, time size, and innovation-related group processes.” European Journal of Work and Organizational Psychology, vol. 10, no. 2, pp. 187-204, 2001.
M. Anastas. “The Changing World of Management Accounting and Financial Management.”Management Accounting, vol. 74, no. 4, pp. 48-50, 1997.
M. Beer, R. Ruh, J.A. Dawson, B.B. McCaa and M.J. Kavanagh. “A performance management system: Research, design, introduction and evaluation.” Personnel Psychology, vol. 31, pp. 505-535, 1978.
M. Polany. “Tacit Knowing” in Theories in Contemporary Psychology, 2nd ed., M.H. Marx and F.E. Goodson, New York: Macmillan, 1976, pp. 330-344.
M. Polany. Personal Knowledge, Towards a Post Critical Philosophy. London: Harper & Row, 1962.
M. Polany. The Tacit Dimension. Garden City, New York, NY: Doubleday, 1966.
M. Sigala and K. Chalkiti. “Improving performance through tacit knowledge externalisation and utilisation.” International Journal of Productivity and Performance Management, vol.56, no. 5/6, pp. 456-483, 2007.
M.A. Abernethy, M. Horne, A.M. Lillis, M.A. Malina and F.H. Selto. “A multi-method approach to building causal performance maps from expert knowledge.” Management Accounting Research, vol. 16, no. 2, pp. 135-155, 2005.
M.A. Malina and F.H. Selto. “Controlling and communicating strategy: An empirical test of the effectiveness of the balanced scorecard.” Journal of Management Accounting Research, vol. 13, no. 1, pp. 47-90, 2001.
M.A. Malina, H.S.O. Nørreklit and F.H. Selto. “Relations among Measures, Climate of Control, and Performance Measurement Models.” Contemporary Accounting Research, vol.24, no.3, pp. 935-982, 2007.
M.A. Meyer and J.M. Booker. Eliciting and analyzing expert judgement: a practical guide.London: SIAM, 1991.
M.L. Frigo. “Nonfinancial performance measures and strategy execution.” Strategic Finance, vol. 84, no. 2, pp. 6-9, 2002a.
M.L. Frigo. “Strategic-focused performance measures.” Strategic Finance, vol. 84, no. 3,pp. 14-15, 2002b.
N. Jalaliyoon, H. Taherdoost, M. Zamani. “Utilizing the BSC and EFQM as a Combination Framework; Scrutinizing the Possibility by TOPSIS Method.” International Journal of Business Research and Management (IJBRM), vol. 1, no. 3, pp. 169-182, 2011.
N. Shadbolt and M. Burton. “Knowledge elicitiation” in Evaluation of Human Work: A Practical Ergonomics Methodology, J.R. Wilson and E.N. Corlett, London: Taylor & Francis, 1990, pp. 321-345.
N.J. Cooke. “Varieties of knowledge elicitation techniques.” International Journal of HumanComputer Studies, vol. 41, no. 6, pp. 801-849, 1994.
P. Buckley. “Using Information Aggregation Markets for Decision Support.” International Journal of Business Research and Management (IJBRM), vol. 3, no. 3, pp. 133-143, 2012.
R. Kreitner. Principles of Management. 11th ed. Mason, Ohio: South-Western/Cengage Learning, 2009.
R. Lawson, T. Hatch and D. Desroches. Scorecard Best Practices: Design, Implementation,and Evaluation. Hoboken, New Jersey: John Wiley & Sons, 2007.
R.E. Nelson and K.M. Mathews. “Cause Maps and Social Network Analysis in organizational Diagnosis.” Journal of Applied Behavioral Science, vol. 27, no. 3, pp. 379-397, 1991.
R.R Hoffman. “The Problem of Extracting the Knowledge of Experts from the Perspective of Experimental Psychology.” Al Magazine, vol. 8, no. 2, pp. 53-67, 1987.
R.R Sims. Managing Organizational Behavior. Westport: Quorum Books, 2002.
R.S. Kaplan and D.P. Norton. “Having Trouble with Your Strategy? Then Map It.” Harvard Business Review, vol. 78, no. 5, pp. 167-276, 2000.
R.S. Kaplan and D.P. Norton. Strategy Maps: Converting Intangible Assets Into Tangible Outcomes. Boston, Mass.: Harvard Business School Press, 2004.
R.W. Hilton. Managerial Accounting – Creating Value in a Dynamic Business Environment.9th ed. New York: McGraw-Hill Companies, 2010.
S. Nadkarni and F. Fui-Hoon Nah. “Aggregated Causal Maps: An Approach to elicit and aggregate the knowledge of multiple experts.” Communications of the Association for Information Systems, vol. 12, pp. 406-436, 2003.
S. Nielsen and E.H. Nielsen. „Discussing feedback system thinking in relation to scenario evaluation in a balanced scorecard setup.” Production Planning & Control, vol. 23, no. 6,pp. 436-451, 2012.
S. Nielsen and E.H. Nielsen. „System dynamics modeling for a balanced scorecard – Computing the influence of skills, customers, and work in process on the return on capital employed.” Management Research News, vol. 31, no. 3, pp. 169-188, 2008.
S.J. Kwon. “Conceptual modeling of causal map: Object oriented causal map.” Expert Systems with Applications, vol. 38, no. 1, pp. 360-370, 2011.
S.P. Santos, V. Belton, S. Howick. “Adding value to performance measurement by using system dynamics and multicriteria analysis.” International Journal of Operations & Production Management, vol. 22, no. 11, pp. 1246-1272, 2002.
Searcy, D.L. “Aligning the Balanced Scorecard and a Firm’s Strategy Using the Analytic Hierarchy Process.” Management Accounting Quarterly, vol. 5, no. 4, pp. 1-10.
T.M. Somers, K. Nelson. “The impact of critical success factors across the stages of enterprise resource planning implementations.” Proceedings of the 34th Hawaii International Conference on Information Systems (HICSS-3), January 3-6 Maui, Hawaii, 2001.
V. Ambrosini and C. Bowman. “Tacit knowledge: some suggestions for operationalization.”Journal of Management Studies, vol. 38, no. 6, pp. 811-829, 2001.
W. Ossadnik, R. Kaspar. “Evaluation of AHP software from a management accounting perspective.” Journal of Modelling in Management, vol. 8, no. 3, pp. 305-319, 2013.
Professor Wolfgang Ossadnik
University of Osnabrueck - Germany
Mr. Ralf H. Kaspar
University of Osnabrueck - Germany
Mr. Stefanie Schinke
University of Osnabrueck - Germany

View all special issues >>