Multi-perspective strategic goal setting, performance reporting and organisational performance
Purpose - This paper's aim is to study multi-perspective strategic goal setting and performance reporting systems and investigate: if the strength of the alignment of the goals and performance measures is associated with organisational performance and if performance reporting emphasis (PRE) is associated with performance. Design/methodology/approach - Structured interviews with CEOs of 50 Australian companies with sales greater than $100 million per annum were conducted. Findings - The research identified 11 dimensions of PRE and 13 dimensions of organisational performance. The strength of the alignment of the strategic goals and the performance reporting measures was positively associated with organisational performance. PRE was positively associated with organisational performance. The alignment finding was the stronger of the two. Originality/value - The research identified several dimensions of performance reporting that organisations might consider using in their performance reporting systems. The findings suggest organisations should closely align their strategic goals with their performance reporting measures. Further, if an organisation wishes to achieve high performance on a particular dimension, it should be given some emphasis in their performance reporting system.
Journal of Applied Accounting Research