For many years, Research and Development (R&D) activities were excluded from the routine performance measurement practices in many companies because performance measurement in this area of business was considered to be too difficult, or even counter-productive. Today, the pressure on R&D managers to be accountable for their contribution to company success is growing. At the same time, companies have to improve their increasingly complex R&D processes to meet challenges resulting from various changes in their business environment. Hence, the acceptance of performance measurement in R&D environments is growing, and the topic attracts increasing attention in literature. However, many R&D managers report that they are uncertain how to select the most meaningful metrics and measurement methods for their situation. Is a procedure developed for development processes also applicable to a basic research department? And is an often-recommended metric such as 'the percentage of sales generated by products introduced over the past five years' also a useful basis for making decisions on this year's bonuses for R&D staff? Such design problems are the subject of this book.Primarily based upon literature research, case studies of functioning R&D performance measurement systems, and four action case-studies of R&D measurement system design processes, all of which are described in this book, a contingency dependent measurement system design approach has been developed: the Performance measurement system Systematic Design Approach (PSDA). As is typical of this approach, the measurement system design is based on the key functions that a particular system is expected to fulfil in the performance control process. The system is further tailored to the peculiarities of the context to which it is applied, such as the type of R&D. To achieve this purpose, the general systematic design approach is augmented with taxonomies of options, and with selection guidelines for R&D performance measurement system design.
|Award date||16 Apr 1999|
|Place of Publication||Enschede|
|Publication status||Published - 16 Apr 1999|