Performance Management by Causal Mapping: An Application Field of Knowledge Management

Abstract

As implied by the performance management (PM) concept, modern corporate management has to focus on cause-and-effect relationships underlying a firm´s financial performance generation. To determine the causes of financially desirable effects, subject-bound experiences and knowledge of employees, called tacit knowledge, should be realised. For this, knowledge management (KM) offers various elicitation techniques to reveal corporate-specific success factors (SFs) of financial performance generation from the corporate experts´ implicit knowledge. The identified factors have to be organised within a network of cause-and-effect relationships. In this framework, PM can apply the instrument of mapping to structure the individually revealed knowledge, to aggregate and visualise it for the entire company. For a valid representation of the causal relationships, the subjective bias arising within the mentioned process has to be minimised. In the literature, a variety of mapping methods can be found that differ in their approaches and their level of significance. As such a method, causal mapping will be presented in this paper. For providing intersubjectivity, the decision-making trail and evaluation laboratory (DEMATEL) as a multi-criteria approach will be debated in the context of mapping as a research field