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Evaluation of Performance in a Product Development Context

Publication Type:

Journal article


Business Horizons




In today’s competitive environment the need to deploy product-development investments more effectively is greater than ever. To assist managers, two conceptual tools have been developed to support the evaluation of performance in product development. The Performance Measurement Evaluation Matrix (PMEX) presented here helps managers evaluate performance-measurement systems they currently use, in order to identify areas requiring improvement. Results from using the PMEX indicate that it is common to associate performance measurements with the efficiency aspects of time, cost, and quality, without monitoring the value created. Performance is largely perceived by managers in terms of time, cost, and quality of the activities in the later phases of the development process. We argue that an effective performance-measurement system is based on performance criteria and then derive measurements based on these. It is argued that there should be a change in the perception of performance before performance-evaluation systems can be improved. The Product Development Organizational Model (PDOPM) assists in developing the perception of performance by relating uncertainty, efficiency and effectiveness at three generic activity levels within the product-development function. The use of our tools provides an improved perception of performance and its measurement, thus enabling improvements to the evaluation of performance.


author = {Stefan Cedergren and Anders Wall and Christer Norstr{\"o}m},
title = {Evaluation of Performance in a Product Development Context},
month = {February},
year = {2010},
journal = {Business Horizons},
publisher = {ELSEVIER},
url = {}