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1. Introduction
The strategic performance management (SPM) is the process of measurement and management of an enterprise performance which describes the processes, methodologies, metrics and systems needed to measure and manage performance of the organization. It has evolved over a period of time from simple to strategically aligned multidimensional performance management. It is also known as enterprise performance management (EPM), business performance management (BPM) and corporate performance management (CPM). The key performance indicators (KPIs) help to measure the progress of the companies, business units, projects or individuals compared to their strategic goals and objectives. Different frameworks and models of SPM have been developed in last three decades, incorporating a variety of performance measures such as efficiency, effectiveness, productivity, quality, customer satisfaction, innovation and employee satisfaction in addition to financial to produce world-class enterprise performance; Six Sigma (1985), activity -based costing (ABC) (1988), total quality management (TQM), EFQM excellence model (1991), Malcolm Baldrige National Quality Award (MBNQA) (1987), balanced scorecard (BSC) (Kaplan and Norton, 1992, 1996) and performance prism (Neely and Adams, 2001). These models are not free from implementation issues and failures like other management tools and frameworks. Few studies have brought out the reasons for unsuccessful implementations and failures of BPM.
The dynamic business environment due to globalization, liberalization and modernization is posing great business risks. The turbulence and uncertainty in business environment necessitate the incorporation of various types of flexibilities such as strategic, technical, operational, information system (IS), etc. (Sharma et al., 2010; Sushil, 2012, 2015, 2016). The implementation issues and critical success factors also need to be taken care of in the model. Performance of oil industry is affected by global factors such as fluctuation in oil and natural gas price and consumption, capital investment and environmental concern. A comprehensive SPM model incorporating flexibility needs to be developed to measure the enterprise performance in oil industry in uncertain business environment. Such a model has been developed and empirically tested in the Indian oil sector which is presented in this paper.
2. Literature review
The performance management system (PMS) has been in use in many organizations for a long time. Traditional systems concentrated more on financial or productivity aspects. Latest generation of PMSs which came up in last 20 years are multi-...