Abstract
Abstract This paper demonstrates the inadequacy of traditional measures, that are based on a firm's profitability, for evaluating its strategic performance. Two other measures, one that attempts to assess the quality of a firm's transformations (and not merely its outcomes) and the other that attempts to measure the satisfaction of all of the firm's stakeholders (and not merely its stockholders), are shown here to be important discriminators of strategic performance. The performances of seven ‘excellent’ firms from the computer industry, featured in the recent book by Peters and Waterman, are contrasted with that of seven ‘non‐excellent’ firms from the same industry, to develop a framework for measuring strategic performance.
Keywords
Profitability indexShareholderStrategic managementIndustrial organizationQuality (philosophy)BusinessMarketingMeasure (data warehouse)Strategic fitPerformance measurementProcess managementComputer scienceCorporate governanceFinance
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Publication Info
- Year
- 1986
- Type
- article
- Volume
- 7
- Issue
- 5
- Pages
- 437-458
- Citations
- 1294
- Access
- Closed
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Cite This
Balaji S. Chakravarthy
(1986).
Measuring strategic performance.
Strategic Management Journal
, 7
(5)
, 437-458.
https://doi.org/10.1002/smj.4250070505
Identifiers
- DOI
- 10.1002/smj.4250070505