The effect of performance management of strategy on an executive decision support framework for the financial service sector of a developing economy

Abstract

Strategic alignment from a performance perspective is difficult to achieve manually. Transparently aligning organizational strategy to each employee’s key performance indicators reduces the risk of duplication and redundancies in performances. Executive Decision Support Framework (EDSF) results in efficiency, cost reduction, and employee satisfaction when their performance is aligned with organizational goals on a continuous basis. This study posits that achieving optimum strategic alignment for the organization and reducing inefficiencies is a function of data and its ensuing analytics. This paper presents mathematical evidence to confirm that Performance Management of Strategy is integral to an Executive Decision Support Framework (EDSF). A mixed method research approach was followed where semi-structured interviews were held with Chief Information Officers. The semi-structured interviews formed the basis of survey design. The survey questionnaires were qualitatively analysed using structural equation modelling and the maximum likelihood estimates method, to mathematically prove Performance Management of Strategy is an integral part of Executive Decision Support Framework This research provides evidence that Performance Management of Strategy is integral to and must be contained in the Executive Decision Support Framework. Performance Management of Strategy is mathematically linked to an EDSF. Although Performance Management of Strategy comprises latent variables, there is a strong correlation between information quality and an EDSF.