Conceptualisation and Application of Strategic Performance Measurement and Management in the “New Public Management” Context: Systematic review

Abstract

Purpose: There is literature gallore on strategic performance measurement and management (SPMM) particularly since the 1990s. This paper explores the four dimensions of SPMM commencing with the genesis and trajectory of SPMM, followed by an investigation on the derivation, application, and utilisation of public sector performance measures, an examination of the distinctive characteristics of the public sector and implications on public sector SPMM and concludes with approaches to successful translation of private sector SPMM practices to the public sector. Design/Methodology/Approach: The study adopted a systematic literature review protocol as the primary research method to undertake a theoretical synthesis and thematic analysis of 266 papers on the conceptualisation and application of SPMM in the private, public and third sectors. The papers were subjected to a thorough, precise, and balanced double phase, single review process aimed at reducing bias which enhanced the rigour and overall research quality. Findings: The systematic review revealed that SPMM evolved in phases across the three sectors, first in the private sector (220AD), then the public sector (1900), and finally the third sector (1960s). By the 1990s, convergence of contemporary multi-dimensional SPMM systems emerged as they were adopted and adapted to various sectoral, organisational, and environmental trends. The review of public sector SPMM models employed by the West over 30 years highlighted the critical role of performance measures in the successful execution of public sector SPMM systems. The study validated their increasing centrality to public sector performance and accountability and enhanced sophistication of new ICT-driven SPMM systems. The study thoroughly examined public-private sector differences, revealing critical insights for applying private sector SPMM practices in the public domain. It highlighted the implications of the differences on public sector performance measures. The study further revealed that benchmarking, initially from the private sector, is now crucial for inter-organisational and global comparisons in the public sector. These findings are essential for practitioners and academics in exploring and addressing the unique challenges of implementing SPMM in the public sector's complex environment. Research Limitations: The research was wide-ranging, bulky, and time-consuming under severe time constraints and had to be severely abbreviated which could result in bias and impact replicability. Practical Implications: This paper attempts to bridge the gap between theory and practice in the highly practitioner reliant SPMM field. It proposed a comprehensive public sector SPMM descriptive model complemented by a ten point framework based on literature recommendations which is expected to facilitate future public sector KPI implementations. This is important for public managers employ SPMM systems and must address the daily practical realities of the unique and complex public sector environment. The paper tackles the linkages between various SPMM dimensions pertaining to the public sector and concludes that there is a performance dividend that accrues when these linkages are systematically explored. Originality/value: The paper thoroughly provides a cumulative assessment of four separate yet complimentary dimensions on the conceptualisation and application of SPMM in the public, private and third sectors covering centuries. The proposed enhancement to the original systematic literature review protocol can enrich future studies. The proposed public sector SPMM models and recommendations ventured beyond the superficial debate on applicability of private sector approaches to the public sector and addressed the critical practical aspects that are visibly missing from most public sector SPMM literature. The study makes a rare contribution to the theory and practice of SPMM in the turbulent digital era.

Keywords: Strategic, performance management, performance measurement, key performance measures, key performance indicators, New Public Management, performance measures, systems, fragile, periphery country

DOI: 10.7176/JESD/16-4-02

Publication date: June 30th 2025