Towards customer intimacy: Implications for performance measurement

Recent performance measurement (PM) literature recognizes that measurement systems are not simply designed and implemented but rather evolve over time. As a result, researchers are encouraged to shift their attention to the use phase of PM systems. This paper describes the evolution of performance management in a bank that achieved breakthrough results through the implementation of a new strategy based on customer intimacy. The paper explores significant changes in PM system use and highlights the importance of both increasing the maturity of the performance review process and the alignment of PM use practices with business strategy.