Proceedings of the 3rd European Conference on Intellectual Capital

Angelos Vouldis and Angelica Kokkinaki
8. Selecting <strong>the</strong> appropriate model or framework for measuring business
performance for a sales organisation
The objective <strong>of</strong> <strong>the</strong> selecting <strong>the</strong> appropriate model framework will enable <strong>the</strong> sales organisation
quickly and effectively selecting metrics that support sales objectives, strategy and goals. The
selected framework or model will support to:
Expand a deeper understanding <strong>of</strong> <strong>the</strong> factors <strong>of</strong> sales productivity
Develop a common understanding for monitoring and improving performance
Recognise sales performance from a variety <strong>of</strong> perspectives
As Neely et al. (2003) analysed to gain real value from measuring business performance need to
address <strong>the</strong> challenges <strong>of</strong> <strong>the</strong> third generation approaches, namely:
Models or frameworks must reflect <strong>the</strong> static and dynamic realities <strong>of</strong> organisations but at <strong>the</strong>
same time not lose appropriateness as a managerial tool;
We must move from data to information and must provide rigorous information especially for <strong>the</strong>
intangible value drivers in organisations;
The models must be practical and aligned with o<strong>the</strong>r organisational processes in order to allow
actions to be taken;
And most fundamentally <strong>of</strong> all, we must seek increasingly robust ways <strong>of</strong> demonstrating <strong>the</strong> cash
flow implications <strong>of</strong> <strong>the</strong> non-financial and intangible organisational value drivers.
Performance measurement framework must have practical value, <strong>the</strong> process <strong>of</strong> populating <strong>the</strong>
framework has to be understood in detailed. Neely et.al (2000) finalised, as shown figure 6, into four
interlinked <strong>the</strong>mes <strong>of</strong> measurement system design, implementation, use and ongoing management,
and <strong>the</strong> people, processes, infrastructure and culture issues associated with <strong>the</strong>m.
Figure 6: Measuring business performance: emerging research <strong>the</strong>mes (from Neely et.al, 2000)
The starting point for any selection process has to be <strong>the</strong> recognition that <strong>the</strong> different models and
frameworks for measuring business performance each have different strengths and weaknesses. The
criteria for selecting <strong>the</strong> appropriate model or framework focus on <strong>the</strong> align daily work to <strong>the</strong>
organisation’s strategic objectives, provide a structured approach to strategic management, establish
winning performance indicators, support internal and external communication, sustain customer
satisfaction at all times and finally identify strengths and areas for improvement
A framework to support <strong>the</strong> selection <strong>of</strong> <strong>the</strong> appropriate model or framework has been developed
based on existing literature and <strong>the</strong> functions and elements <strong>of</strong> a sales organisation. The following
assessment criteria were used asking specific questions for every different model or framework:
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