A Strategic Performance Indicator Deriving Framework for Evaluating Organizational Change

The management of performance indicators is critical to the development and deployment of an organization's strategies and to the evaluation of changes in organizational performance as an outcome. To adapt to the changing environment, strategies are often restructured and strategic initiatives are developed. The implementation of such strategic initiatives requires the timely and dynamic management of performance indicators in line with the restructured strategies. In this study, we aim to support strategic decision making in the changing environment and propose a framework for deriving performance indicators for evaluating organizational change. The strategic performance indicator derivation (SPID) framework was applied to strategic initiatives to evaluate validity. Results show the effectiveness of the SPID framework and the derived performance indicators. Using the proposed framework, the achieved performance change can be explained more clearly based on the causal relationship between the transition state of the organization and the strategic initiatives.