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Volume 4 Issue 1 January 2006
A Process Framework for an Interoperable Semantic Enterprise Environment
Andrea Fried1 and Fabricio Orellana2
1Chemnitz University of Technology, Germany
2Wüstenrot & Württembergische Informatik GmbH, Germany
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During the last years there have been many efforts by both practitioners and researchers to put knowledge capital into management ratios in order to get more adequate information about organisations. This leads to the idea that a more accurate description of organisational reality helps to substantiate decision processes of managers and provides stakeholders with more complete information about the organisation. However, by getting closer insights into the discussion on Performance Measurement Systems (PMS) for knowledge capital some shortcomings are evident: First, PMS for knowledge capital are criticized by managers for not producing satisfactory results. Second, at present the discussion has a strong instrumental focus and concentrates on the tools itself, their features, or their IT embeddedness. However, so far there are just a few case studies that analyse the way PMS for knowledge capital really effect organisations.
PMS for knowledge capital represent organisational reality and are likewise instruments for their observation. Observations of organisational reality already entail conceptual differentiations: Some aspects of organisational reality are perceived, but others are unconsciously excluded. As a consequence, organisations obtain unintended ‘blind spots’ in their perception of organizational reality while using PMS. Therefore, our paper presents the concept of “First and Second Order Reflection of PMS” for an extended understanding of PMS effects in organisations. Thus, we propose a more reflexive way of dealing with these instruments.
Keywords:
Knowledge capital, performance measurement systems, organisational practices, first and second order reflection.
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