Performance measurement for a better future

Nørreklit Hanne, Cinquini Lino

Performance measurement has become increasingly crucial, encompassing both organizational and personal spheres. It assesses how effectively tasks are carried out and is pivotal in determining the value derived from these activities. Traditional approaches to performance measurement, rooted in representational realism or social constructivism, present limitations in ensuring trustworthiness. This paper proposes pragmatic constructivism (PC) as an alternative paradigm to enhance the reliability of performance measurement. PC posits that organizational practices are constructed by humans through cognitive processes and offers an epistemological framework for developing effective measurement systems and a foundation for intentional and valuable outcomes. The paper discusses the shortcomings of traditional paradigms, outlines the principles of PC, and demonstrates its application in evaluating the three existing measurement frameworks of financial accounting, the Balanced Scorecard, and sustainability framework of Global Reporting Initiative (GRI).

Keywords: Performance measurement, Performance paradigm, Pragmatic constructivism