Abstract
The purpose of this study is to explore the changes in performance management practices and effectiveness in Japanese companies, as well as the existence, content, and factors behind the transformation in thinking. The characteristics of this study are the implementation of a longitudinal analysis based on ten years of actual survey data, the in-depth study of the obtained data, and the integrated interpretation with reference to other actual surveys. The results of the analysis indicate that the changes in performance management over the ten-year period from 2009 to 2019 may be a gradual improvement of the traditional P/L (profit and loss statement)-centered management by strengthening the accounting control, rather than a radical change to a management that emphasizes capital efficiency and balance sheet. In addition, it was suggested that the aim of the change was to improve short-term financial performance rather than to enhance medium- to long-term corporate value. Although some signs of transformation were suggested in some groups of companies, it is possible that the average company surveyed is only making incremental improvements as an extension of its existing practices, rather than proactively transforming its performance management. This study is positioned as a hypothesis-generating study, and is useful for explaining the actual situation and analyzing future research topics.
