A hierarchy of performance measurement in a shared services business environment.

• Main Author: Van der Linde, Tjaart Nicholaas
• Published: 2008
• Subjects: Performance measurement; Organizational effectiveness; Shared-services (Management)
• Online Access: http://hdl.handle.net/10210/328

This thesis presents a structured approach to measure the performance of a shared services business unit. This approach links the activities in the areas at which a shared services business unit must excel to create sustainable value for the organisation to the organisational vision. The methodology developed can be used to measure the performance of a shared services business unit by all the stakeholders that have an interest in the organisation. The study concludes that measuring of the performance of a shared services business unit is dependent on the organisational vision and strategies as contained in a mission statement. The study further concludes that as the transformation of technology, business processes, people and customer satisfaction are required for continuous evolution of the shared services; the activities that make up these areas should form the basis of the performance measurement of shared services. These activities in the areas of technology, business processes, people and customer satisfaction should be derived from the organisational vision and mission, and be supportive of the organisational mission and vision. The author has studied shared services and performance measurement metatheories and has found that the principles applicable to measure the strategic performance of an organisation can be applied to a shared services business unit. Some of these principles are so straight forward that they are often overlooked and taken for granted. The empirical methodology in this thesis follows a structured approach where the sample framework was tested to determine if the sample elements comply with the requirements of shared services. Following on this the study had to determine if the remaining sample elements are measuring the performance of their respective organisations in a structured manner. Only once this has been established can the study determine the manner in which these sample elements measure the performance of their shared services. After this, the elements identified through the literature study and empirical research could be build into a hierarchy of performance measurement for a shared services business unit. In developing a hierarchy of performance measures for a shared services business unit, shared services organisations have been provided with a structured approach to measure the performance of their shared services business unit that will indicate the value created by the shared services to all stakeholders concerned. === Prof. A.L. Boessenkool