How do SME CEOs measure their strategic performance ? SPMS which combine formal indicators and informal mechanisms
The study of strategic performance measurement systems (SPMS) in SMEs is of great interest given the economic and social importance of the latter. Some authors have proposed applying systems designed for major organizations and have observed difficulties in implementing them; others have suggested designing SPMS specifically for SMEs, which would require more understanding of their practices. This article deals with SPMS used by SME CEOs and the way in which the latter measure their strategic performance. To do this we made a qualitative study of three SME manufacturers. Our results show that their SPMS are designed as a combination of indicators and informal control and coordination mechanisms. With SPMS made up of a selection of both financial and non-financial indicators, they deliberately focus on strategic priorities, action plans and the monitoring of any potential deterioration of critical success factors or relationships with certain stakeholders. The CEOs have deliberately not measured all of the performance dimensions. However these are all under control due to the use of informal mechanisms.