Design and Implementation of Performance Management Systems, KPIs and Responsibility Centers:A Case Study

Responsibility centers, balanced score cards, EVA, performance management system, KPIs, etc., are organizational systems of great significance for creating corporate performance. Glories of successful corporate transformations using these systems have been well documented and studied in depth. However, there have been also multitudes of partial or total failures of such organizational transitions which are often neglected by researchers. Study of failure cases can provide the control group necessary to test the critical factors influencing successful transformations which are often credited to top management involvement, charismatic leadership, capacity building, etc. Moreover, most case studies are about large, especially fortune 500 companies, usually headquartered in the US or Europe the lessons from whose experience may not be applicable to Asian companies, particularly those in the SME and MME sectors. This paper describes and discusses a case study of a small Indian enterprise in order to highlight the issues required to be considered when designing and implementing organizational transformation programs for smaller Asian organizations.