The purpose of this paper is to consider the presence and consequences of functional overlap in organizational performance management (PM) systems.
This paper is speculative in that it considers the consequences of organizations applying multiple PM systems. Four widely‐used PM systems from various management perspectives are selected as proxies to demonstrate that overlap can occur across a broad array of extant PM systems. The content of the selected PM systems literature was used for analysis.
The analysis found evidence of substantial functional overlap among the selected PM systems. Significant niche overlap occurred in the functions: assisting strategy formulation and implementation processes; supporting strategic decision making; and facilitating strategic learning.
This study and its findings should help scholars to reframe their understanding of PM systems and let managers recognize and take action to optimize the benefits and costs of functional overlap.
The paper identifies functional overlap; a concept not explicitly addressed in the PM literature.
