Towards consistent performance management systems

Performance indicators (PIs) and performance measurement are popular topics in management literature nowadays. However, hardly ever is attention paid to the consequences of the relationships that often exist between the different PIs for designing effective, consistent performance management systems for organizations as a whole. This paper sets out a concrete method for constructing a consistent set of PIs forming the basis of a consistent performance management system, where explicit attention is paid to the relations between PIs. It discusses the important role played by the new classification of PIs, and provides a case study to illustrate the use of the method in a practical situation.