Alignment of performance metrics in a multi-enterprise agribusiness: a case of integrated autonomy?

Article


Bryceson, Kim P. and Slaughter, Geoff. 2010. "Alignment of performance metrics in a multi-enterprise agribusiness: a case of integrated autonomy?" International Journal of Productivity and Performance Management. 59 (4), pp. 325-350. https://doi.org/10.1108/17410401011038892
Article Title

Alignment of performance metrics in a multi-enterprise agribusiness: a case of integrated autonomy?

ERA Journal ID19353
Article CategoryArticle
AuthorsBryceson, Kim P. (Author) and Slaughter, Geoff (Author)
Journal TitleInternational Journal of Productivity and Performance Management
Journal Citation59 (4), pp. 325-350
Number of Pages26
Year2010
Place of PublicationBingley, W Yorks. United Kingdom
ISSN0043-8022
1741-0401
1758-6658
Digital Object Identifier (DOI)https://doi.org/10.1108/17410401011038892
Abstract

Purpose - To examine the disconnect that can develop between corporate goals and those of individual intra-organisational business units arranged as an internal supply chain within a large vertically integrated agribusiness. To explore and discuss the development of a holistic performance metrics system that facilitates internal supply chain coordination and cohesion while allowing synergies to develop across the company.

Design/methodology/approach - A case study approach involving a participative action research component was used to examine the disconnect between internal business unit (operational) goals and overall corporate (strategic) goals and to develop a conceptual performance assessment model addressing both operational and strategic contexts.

Findings - The findings show that appropriate performance indicators and measures can be created that relate directly to logical operational outcomes thus encouraging a more tightly integrated internal supply chain, a stronger coherence among the components and a better aligned set of operational and corporate goals.

Research limitations/implications - Only financial information and data obtained from a participative managerial decision making simulation were used to explore performance goal incongruence between operational and corporate managers, compared to the need for multiple contextual performance measurement metrics that the literature suggest provides a best practice system.

Originality/value – The rapidly developing corporate agribusiness sector provides a unique operating environment in that these companies deal primarily in self regenerating assets such as livestock. Additionally we explore for the first time the development of performance metrics for improving the coordinated integration of autonomous business units is explored for the first time and the concept of “Integrated Autonomy” is suggested as a way to describe the resulting situation.

Keywordscase study; agribusiness; internal supply chain; performance measurement; goal alignment; integrated autonomy
ANZSRC Field of Research 2020300208. Farm management, rural management and agribusiness
350799. Strategy, management and organisational behaviour not elsewhere classified
350999. Transportation, logistics and supply chains not elsewhere classified
Public Notes

File reproduced in accordance with the copyright policy of the publisher/author.

Byline AffiliationsUniversity of Queensland
School of Accounting, Economics and Finance
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