eBRC Research Report 9

The Use of Performance Measurement in Knowledge Work Context

Jussi Okkonen

Contemporary organisations are based more on intangible assets than tangible ones. The notion of the importance of knowledge work has also drawn attention to the management of knowledge workers. To survive in competition, contemporary organisations need managerial processes that support leadership. There are several tools that suit this purpose. This study has its focus on using performance measurement in the knowledge work context.

The study is based on a series of action research projects conducted in Finnish knowledge work organisations during the period 2001 – 2003. The study is normative in nature, as it aims to prove the usability of performance measurement and also to provide guidelines for applying performance measurement frameworks. The main objective is to create recommendations of sound use of performance measurement in knowledge work context by identifying and defining the main attributes of quality and productivity of knowledge work, i.e. to point out critical factors of knowledge work and find suitable ways of measurement in that context.

The main outcome of this study was that performance measurement in knowledge work context does not per se differ from using performance measurement in a more traditional setting, but success factors in knowledge work are more resource orientated. The measures considering results, external key stakeholders or processes are somewhat similar. In the knowledge work context, the role of employees as the main asset is emphasised. Knowledge worker equals the competencies, i.e. knowledge and skills. The notions of emphasised competencies drive the measurement system toward active approach. Measures should be designed to control the accumulation of knowledge and skills and drive competency development.

The rationale for using performance measurement in knowledge work is threefold. Firstly, competencies are emphasised and measurement is also used to focus on new competencies or measuring the result of decided development schemes. Secondly, employees are considered an asset; hence some degree of democracy is required. And thirdly, the intellectual capital management perspective is emphasised, as it is possible to enable knowledge acquiring, disseminating and competence developing activities by defining certain measures for those issues. Always remember, you get what you measure.

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Distribution
e-Business Research Center eBRC
Tampere University of Technology and University of Tampere

Published by
Tampere University of Technology (TUT) and
University of Tampere (UTA)

Printed edition ISSN 1459-0158 ISBN 952-15-1208-3 (TUT) 951-44-6028-6 (UTA)	Electronic edition ISSN 1459-0166 ISBN 952-15-1209-1 (TUT) 951-44-6029-4 (UTA)

Printed by Cityoffset Oy, Tampere 2004