Critical Success Factors in the Implementation of Performance Management Systems in UAE Government Organisations

This study undertook research on government organisations in the UAE with a view toward identifying the most important Critical Success Factors (CSFs) that support the successful implementation of performance management systems (PMSs). However, the study was not limited to the identification of such CSFs, but also sought to examine their relevance and criticality. The remit of the research focus was narrowed to an attempt to understand the causes of PMS failure and to avoid possible obstacles to PMS implementation. Qualitative research took the form of case studies involving interviews, observations and document reviews. This study makes several contributions to the literature on CSFs that influence successful PMS implementation in the government sector, principally in the UAE and other developing countries. Further, it presents a theoretical model of CSFs for the successful implementation of PMS. The findings and recommendations presented in this paper could serve as guidelines for practitioners in the field of PMSs and for government and public organisations to fully benefit from the implementation of PMSs.


Introduction
Organisations in today's rapidly changing global market understand that they need to periodically measure and evaluate their business performance in order to remain competitive (Sharma, Bhagwat, & Dangayach, 2005).In an increasingly aggressive competitive environment, greater focus on continuous improvement, the evolution of quality concepts, and significant developments in information and communication technologies have created a favourable context for the implementation of performance management systems (PMS) in many different organisations (Taticchi, Tonelli, & Cagnazzo, 2010).Privatisation and greater demands from stakeholders and customers are also placing new expectations on organisations, for which performance management has become a cornerstone of success (Bourne, Neely, Platts, & Mills, 2002).By supporting decision making and providing data on how effectively and efficiently services are being delivered, PMSs assist an organisation in controlling its strategy and achieving its goals and objectives (Malina & Selto, 2001).A recent study found evidence of superior financial performance in those branches of an organisation that adopted PMSs (Davis & Albright, 2004).Moreover, a PMS provides the basis for an organisation to identify its strengths and weaknesses, assess how well it is progressing toward its predetermined objectives, and decide on future initiatives with the goal of further improving organisational performance.
Limited research is available on the possible causes of the success or failure of PMSs and the impact of different success factors on their implementation (de Waal & Counet, 2009).Poor understanding of the impact of critical success factors (CSFs) leads to the neglect of their value in designing the right model and consequently increases the risk of PMS failure (Bourne & Neely, 2002).Although extensive research has been carried out to investigate the success and failure of PMSs in various organisations around the world (Ariyachandra & Frolick, 2008;Bourne et al., 2002;De Waal & Counet, 2009;Kennerley & Neely, 2002;Richardson, 2004), there is a distinct lack of published research on issues related to PMS CSFs; however, according to Ariyachandra and Frolick (2008), to help ensure PMS success, several CSFs should be considered.And although a structured discussion of problems encountered when implementing and using a PMS in general seems to be missing in the literature (Bourne et al., 2002), even less attention has been paid to the CSFs that can facilitate effective PMS implementation (Cavalluzzo & Ittner, 2004).Also, of all the research reported in the literature, most relates to developed regions -Europe, the USA, and East Asia -and not to developing countries (Salaheldin, 2009).Similarly, there is a lack of literature regarding the impact of successful PMS implementation on the performance of public organisations (Jamil & Mohamed, 2011).More research into the problems that cause PMS implementation to fail is thus required in order to heighten the chance of its future success (de Waal & Counet, 2009).The design of the present study attempts to deal with the various challenges identified in the literature and to make a contribution in a number of areas, including identifying which CSFs should be considered when striving for successful PMS implementation in UAE government organisations.

Performance Management System (PMS)
Measuring organisational success is a continuous challenge for both managers and researchers (Maltz, Shenhar, & Reilly, 2003).Consequently, the performance management system (PMS) has received considerable attention over the last three decades (Bourne et al., 2002;de Waal, 2007;Kennerley & Neely, 2002).The PMS is now an established concept that is receiving renewed attention in a variety of organisations (Taticchi et al., 2010).There is evidence that PMSs are currently being implemented in approximately 70% of medium to large firms in the USA and Europe, as well as in many government departments (de Waal & Kourtit, 2013).There has also been an increasing volume of empirical work on PMSs in the public sector (Boyne & Chen, 2007;Hoque, 2008;Radnor & McGuire, 2004;Sanger, 2008).
The PMS is a critical factor for the effective management of an organisation, which may be due to the fact that, without measuring something, it is difficult to improve it (Salaheldin, 2009).Historically, PMSs were developed as a means of monitoring and maintaining organisational control and to ensure that organisations pursued strategies that led to the achievement of their overall goals and objectives (Neely, 2005).The development of a PMS in management has followed a path that has been influenced by a general push to improve the quality of services while also meeting strict cost parameters (Bititci, Turner, & Begemann, 2000).The design of an effective PMS, which includes the selection of appropriate measures and approaches for analysing results, is central to aligning an organisation's operations with its strategic direction (Kaplan & Norton, 2006).
Many PMSs have been introduced within the last three decades (Bititci, Carrie, & McDevitt, 1997;Fitzgerald, Johnson, Brignall, Silvestro, & Vos, 1991;Kanji, 1998;Kaplan & Norton, 1992;Keegan, Eiler, & Jones, 1989;Lynch & Cross, 1991;Neely et al., 2002;and others).The balanced scorecard (BSC), initially developed by Kaplan and Norton (1992), is cited by Harvard Business Review as one of the most important management tools of the last 75 years, while PMS is currently attracting a great deal of interest among both industrialists and academics (Bourne et al., 2002).The BSC PMS approach, which is also used extensively by other researchers, has been shown to be an effective system that provides a full evaluation of performance by combining different perspectives and measures (Jiménez-Zarco, Martínez-Ruiz, & González-Benito, 2006).
With the rapid globalisation of the UAE economy, government organisations are facing an increasingly challenging situation.Stakeholders' expectations are increasing and customer satisfaction is becoming more difficult to achieve.Thus, UAE government organisations are competing to create the conditions that will enable them to perform better.Notwithstanding the complexities in implementing PMSs, there has been little empirical research about the CSFs that impact the successful implementation of PMSs (Ariyachandra & Frolick, 2008).Also, there has been very limited empirical research about PMSs in the UAE and in the Middle East more generally.These gaps in the literature are reflected in the low level of contributions to international conferences and journals from these regions.The purpose of this study is to provide UAE government organisations with an understanding of those CSFs that influence successful implementation of PMSs.

PMSs in the UAE
UAE government organisations are striving to create the conditions that will enable them to perform better (Abu Dhabi Sustainability Index, 2011).Consequently, all UAE organisations have begun seeking new tools to enhance business excellence.A well-known PMS framework, the balanced scorecard (BSC) system (Kaplan & Norton, 1992), was introduced by the UAE government in 2008 for this purpose.The government, recognising the value of the PMS as a tool to support continuous improvement, formally established an office for performance management to monitor the implementation of PMSs in different organisations and instructed several of them to report their performance in the BSC format.In response, all organisations have established a set of measures and key performance indicators (KPIs) to meet the government's requirements (The Abu Dhabi Economic Vision 2030).

Critical Successful Factors in a UAE Context
Implementing PMSs in UAE government organisations is a challenging task and subject to a high risk of failure, for a number of reasons.This study was thus undertaken to provide UAE government organisations with an understanding of the CSFs that are central to the successful implementation of a PMS.A literature review was conducted to identify the relevant CSFs, after which an empirical case study was undertaken to discover which of them are the most critical to UAE government organisations.The literature review yielded 13 CSFs, which have been classified as shown in Table 2.
Based on the literature review, the researchers developed a preliminary list of the CSFs that were the most frequently discussed and recommended for the successful implementation of PMSs.The list was used in this study as the foundation for a detailed investigation using case studies.This phase of research will assess the impact and value of CSFs for PMS implementation in UAE government organisations.Therefore, it is anticipated that this study will yield a short list of CSFs that are specific to UAE government organisations.Consideration of these CSFs may enable UAE organisations to better use their resources by focusing on the areas that are most likely to have a greater impact on PMS success.The researchers have classified the CSFs into four categories, as shown in Table 2.

1.
Linking PMS to organisational strategy

2.
System design and integration

3.
Continuous monitoring and reporting PMS design and implementation

4.
Clear targets and business benefits

5.
Top management commitment and support

6.
Staff involvement in the system

7.
Skilled resources running the system

8.
Staff training and awareness People

9.
IT infrastructure and support Technology

10.
Effective data management system

11.
Motivation and linking performance to incentives

13.
Role of effective communication

Processes
The CSFs are discussed under four headings, each representing an area of impact: (1) PMS design and implementation, (2) People, (3) Technology, and (4) Processes.A general discussion is provided below on the theoretical and practical implications of PMSs for UAE government organisations.

Research Methodology
This study undertook research on government organisations in the UAE with a view toward identifying the most important CSFs that support the successful implementation of PMSs.However, the study was not limited to the identification of such CSFs, but also sought to examine their relevance and criticality.The remit of the research focus was narrowed to an attempt to understand the causes of PMS failure and to avoid possible obstacles to PMS implementation.Qualitative research took the form of case studies involving interviews, observations and document reviews.The aim of this research was to identify the most important CSFs that support both successful PMSs and the implementation of a simple and objective PMS framework for UAE organisations.Moreover, this research aimed to develop a framework for the facilitation and implementation of organisation-wide change, such as that provided in a performance management system (PMS).The research specifically focused on governmental organisations in the UAE that share similar characteristics, and assessed the correlation between their strategies, processes and PMSs.The outcome of this study can assist UAE organisations in implementing effective PMSs, better managing their strategies, and enhancing the efficiency of their businesses.The findings of this research should be of considerable interest and value to senior policy makers, managers and other interested parties.
Based on the nature and the objectives of this study, the researcher believes that the case study design was the most appropriate framework for the present research.A case study is an empirical inquiry that investigates a contemporary phenomenon in depth and within its real life context (Yin, 2009).A case study may be appropriate when the field is underdeveloped (Yin, 2003).The method is often exploratory in nature (Eisenhardt and Graebner, 2007) and can be useful in understanding beliefs and relationships.According to Moore (1983), case studies are the preferred strategy when the investigator has little control over events.Case studies do not necessarily have to rely on previous literature or prior empirical evidence.Thus, case study research can be used for theory-building even if little is known about the phenomenon (Vissak, 2010).Thus, the case study method enables research to be conducted in countries with sample bases that are too small for other statistical generalisation methods to be applied (Rowley, 2002).
This study used purposive sampling to identify interviewees.A total of 26 face-to-face, semi-structured interviews were conducted over a period of three months in five organisations.Initially, a small number of interviewees were selected based on their position in the organisational hierarchy and their role within the organisation.An 'expert panel' sampling technique was appropriate for this study, as it was concerned with a small number of specialised people who were knowledgeable in the study area (Aaker, Kumar, & Day, 2001).In each organisation, the researcher approached the managing director to support and facilitate the interviews.The number of participants from each organisation varied between four and six respondents.
Data analysis was spread over two levels.The first level of analysis involved the comparison of interview data for each factor investigated.Then, the diversity of CSFs was divided into a number of categories or themes, which were justified by interview data.The second level of data analysis was a higher level; it involved a more interpretive analysis that was concerned with the responses as well as what may have been inferred or implied.It included the researcher's critical evaluation of the dataset and findings.Therefore, 'memo' codes, or the running commentary of the researcher, were applied to arrive at an in-depth understanding of the interview responses.This inductive approach assists in establishing clear links between the research objectives and the summarised findings derived from the raw data.Consequently, in the present study, the second level of analysis tested the list of CSFs generated from the literature in light of data gathered during interviews.In detailed analysis, a method called data matrices was used.Data matrices are familiar case-by-attribute matrices that are used across the sciences to record data (Bernard & Ryan, 2009).The data matrix used in this study consisted of the construct (theme), attributes or propositions, literature, data references and critical evaluation.The objective of this data matrix was to provide a body of knowledge to aid in implementing PMSs.

Results
The collection and analysis of empirical data in this study led to the identification of the five most important CSFs affecting the successful implementation of PMSs.However, the data collected from the case study organisations showed a very weak emphasis being placed on CSFs, highlighting the need to give them priority in the implementation of PMSs in UAE organisations.In the literature, motivation and linking performance to incentives was found to be the most important CSF, and yet the field data revealed that it was completely missing from the case study organisations.Linking PMS to organisational strategy was ranked the second most important CSF in the literature, although some scholars consider it the most important factor for PMS implementation.That said, the field data results are alarming: 61% of managers reported that no proper link was made between PMS and organisational strategy.Moreover, staff involvement in the system was ranked the third most important CSF in the literature for PMS implementation; yet in this study, 75% of managers reported that staff involvement in PMS design and implementation was either poor or limited.System design and integration was ranked by the literature as the fourth most important CSF, and was discussed more than any other factor.However, although in the surveyed organisations a PMS design was actually in place, 65% of respondents thought that the design required improvement.The fifth most critical factor, top management commitment and support, also received much attention in the literature.However, 58% of respondents reported weak commitment and weak support from top management for PMS implementation.
In addition to identifying CSFs in a UAE context, the outcome of the field research provided a simple model for all CSFs that illustrates thier details and explains how they work.Furthermore, this study contributes to the currently limited understanding of the CSFs affecting PMS implementation.The results of empirical investigation and the analysis of literature led the researchers to create a list of the top five CSFs that exert the most influence on the successful implementation of PMSs within UAE government organisations: 1. Motivation and linking performance to incentives Figure 2. CS

Table 2 .
CSFs identified before field research, classified into four groups