Flexibility Aspects in Performance Management System: An Illustration of Flexible Strategy Game-card

Abstract

Performance management system (PMS) portrays the attainment of an enterprise’s vision and mission through fulfilling the targets and goals. These systems need to follow a cyclic process of continuous improvement with dynamism but, the literature highlights major shortcomings of PMS in terms of lack of causality, feedback approach and lack of dynamism. The study examines the strategic flexibility aspects in PMS through application of one of the recent developments, i.e. flexible strategy game-card. This framework incorporates the situation, actor, process and performance related aspects of an enterprise and combines dual perspective of performance, i.e. enterprise perspective, and customer perspective. The mechanism of implementing flexible strategy game-card has been adopted in the context of one of the Indian automobile manufacturing enterprises, and it is revealed through the study that an effective PMS can become a dynamic system through incorporating the dynamics of external and internal environment, feedback and corrective actions in the existing strategic interventions as well as developing new strategies and business plans.