Performance dialogue A framework to enhance the effectiveness of performance measurement systems

Purpose The purpose of this paper is to provide guidelines for improving performance dialogue with a specific process and framework, leveraging existing literature. Design/methodology/approach Building upon Mengis and Eppler's (2008) framework for conversation management, this study follows an action research approach, involving a process of co-creation, split into several distinct stages including two series of 20 semi-structured interviews with top executives of a major pharmaceutical company. These executives were directly involved in using the performance measurement system (PMS) in order to provide guidelines for improving performance dialogue. The data were analysed using content analysis, and the authors helped to develop a solution. Findings The analysis reveals a variety of recurrent communicative challenges and practices, which all appear to be characteristic for the performance dialogue process. The proposed framework consists of four separate phases, namely: data collection and identification of the main under and over-performance gaps, root cause analysis and action plans formulation, dialogue and solution implementation and dissemination of best practices. Originality/value This research contributes to the literature by introducing work on organisational communication into the field of PMS, by proposing a communication model for performance dialogue implementation. Furthermore, it addresses companies' issues on how to successfully use their PMS and proposes a framework with specific prerequisites to be put into practice. Finally, this study offers a different explanation in the form of the lack of performance dialogue for the failure of PMS, compared to the current explanations found in the literature.