Performance Measurement in Shared Services: Empirical Evidence from European Multinational Companies

SSOs combine cost reductions and risk management benefits, but managers worry about service quality. This study analyzes PMS design in SSOs and reveals which determinants increase effectiveness, providing practical design recommendations for practitioners.

Format: Hardback
Length: 436 pages
Publication date: 18 November 2021
Publisher: Peter Lang AG

Shared Service Organizations (SSOs) have gained increasing importance in research and corporate practice due to their multitude of benefits for multinational corporations. These benefits include cost reductions and enhanced risk management. However, managers express concerns about potential negative effects on the firm's effectiveness due to reduced service quality. The controversy surrounding the outcomes of SSOs is largely attributed to the challenge of measuring their performance accurately. This study delves into the design of Performance Measurement Systems (PMS) in SSOs and examines their effectiveness. Furthermore, the findings shed light on the factors that enhance the effectiveness of PMS. Through an empirical analysis, this study provides practical design recommendations for practitioners operating in a shared service environment.

SSOs offer a range of advantages to multinational corporations, including cost savings and improved risk management. However, concerns arise regarding potential negative impacts on service quality, leading to ongoing debates about the effectiveness of these organizations. One significant factor contributing to the controversy is the difficulty in measuring the performance of SSOs accurately. This study aims to analyze the design of PMS in SSOs and investigate its effectiveness. Furthermore, the findings will reveal the determinants that enhance the effectiveness of PMS.

The study employs an empirical approach to gather data and insights. A comprehensive literature review is conducted to identify key research papers and studies related to PMS design in SSOs. Semi-structured interviews are conducted with experts in the field to gather their perspectives and experiences. Data analysis is performed using statistical tools and techniques to identify patterns and trends in the data.

The findings of the study indicate that the design of PMS in SSOs plays a crucial role in enhancing their effectiveness. Effective PMS design should focus on capturing the right metrics, establishing clear goals and objectives, and providing a framework for measuring and evaluating performance. Additionally, factors such as stakeholder involvement, communication, and collaboration are identified as key determinants of PMS effectiveness.

Practitioners working in a shared service environment can utilize the findings of this study to improve the design and implementation of their PMS. By focusing on the right metrics, establishing clear goals and objectives, and promoting stakeholder involvement and collaboration, practitioners can enhance the effectiveness of their SSO and achieve better business outcomes.

In conclusion, the study analyzes the design of PMS in SSOs and investigates its effectiveness. The findings reveal that effective PMS design is crucial for enhancing the performance of SSOs and achieving better business outcomes. By focusing on the right metrics, establishing clear goals and objectives, and promoting stakeholder involvement and collaboration, practitioners can improve the effectiveness of their SSO and achieve their desired goals.

Weight: 628g
Dimension: 210 x 148 (mm)
ISBN-13: 9783631850459
Edition number: New ed