The art of improvement

摘要

Business strategy;Firm performance;Financial institutions;Indonesia;Service sector;Strategic performance measurement%The key to successfully improving firm performance is to properly align business strategy and performance measurement. Strategic performance measurement systems (SPMSs) are increasingly becoming essential in any attempt to maximize performance of an organization. Yet, an area of important focus is on whether reliance on integrative strategic performance measurement (RISPM) can provide incremental performance in both low-cost and differentiation business strategies. The crucial factor governing whether an SPMS is going to yield results is how successfully it integrates strategic and operational activities as well as the behavioral aspects of employees. Without considering employees' behavior, higher performance is much harder to achieve. Additionally, such SPMSs need to include a continual monitoring aspect that can provide current and accurate measurement of performance. RISPM, a coinage of Yuliansyah et al. (2017), is a strategic performance measure that is based on a system of strategy and operational linkages, which also includes behavioral aspects of employees.