Due to an increasingly volatile and complex environment traditional financial management systems loose effectiveness, as they rely on a rigid command & control paradigm (e.g. traditional planning & budgeting). Research shows that control that results from this paradigm tends to inhibit flexibility, promotes mistrust and therefore does not have a positive effect on the entrepreneurial behavior. Motivated by such findings, the Lab aims to develop a better understanding of the relationship between financial steering systems and their behavioral and motivational effects on actors within the organizational context – and therefore within performance management systems.
Inspired by practical experiences in the transformation of financial steering systems from a rigid command & control paradigm towards a more flexible and trusted self-control with tensions, the SPMM - St. Gallen Performance Management Model (www.spmm.ch) was developed in the first phase of the Lab using empirical research and knowledge transfer to praxis. The model provides interested companies with practicable and at the same time scientifically grounded ideas for transforming their financial steering system. This way, it incites self-responsibility and organizational behavior without suffering from loose of control. Previous experiences show that this can achieve substantial performance increase.
The SPMM framework is better adjusted to a VUCA environment (volatility, uncertainty, complexity, ambiguity). In its second phase of work, the Lab continues to connect results from management control research and adjacent areas of organization, social and behavioral sciences through empirical research projects. Furthermore, due to transfer projects applied in practice the model is constantly put to test and implemented in different context situations.
The Lab is managed by Franz Wirnsperger, former Head of Finance of Hilti, and employs several PhD students. They work on projects with corporate partners as well as on scientific projects within the research focus of the Lab. Herewith the knowledge transfer is being promoted. The Lab is an integral part of the Chair of Controlling / Performance Management of Prof. Dr. Klaus Möller, who is the scientific director.
Institutions interested in performance management innovations are asked to contact us directly. Furthermore, the chair also offers the participation at the “Performance Management Network”, which is a network of companies specifically interested in new directions and developments in performance management. The network informs about current results of the Lab, also in form of executive education and training programs.
For further information, please contact franz.wirnsperger@unisg.ch
