Performance measurement in a Lean organization: the case of the Wiremold company
Publication date: 15 February 2022
Issue publication date: 9 March 2022
Abstract
Theoretical basis
Critical analysis of observed practice.
Research methodology
Field study.
Learning outcomes
To expose accounting and MBA students to Lean management and the performance measures that support Lean management by presenting a case of a comprehensive and very successful Lean transformation; to give accounting and MBA students the opportunity to construct a strategy map and a balanced scorecard based on a rich case description; and to critically assess the suitability of balanced scorecards for a company that embraces Lean management.
Case overview/synopsis
The case describes a comprehensive transformation from conventional management to Lean management and business practices, with an emphasis on the largely non-financial performance measures used to support the transformation. Around the time of the Lean transformation, the balanced scorecard, a multi-dimensional measurement approach, was introduced to address the problems of excessive reliance on financial performance measures. Students are asked to compare and contrast Wiremold’s approach to the balanced scorecard.
Complexity academic level
Graduate or upper level undergraduate courses in cost accounting, managerial accounting and strategic management.
Keywords
Acknowledgements
Disclaimer. This case is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from published sources.The author would like to thank Bob Emiliani for allowing him to use the interview transcripts from The Wiremold Company case study that led to the publication of Better Thinking, Better Results in developing this case. Author would also like to thank The Wiremold Company Management circa 2000 for their willingness to share their experiences, especially Art Byrne and Orry Fiume, who provided further insights in subsequent interviews for this case. Finally, Author would like to thank Anthony Laraia, Jeffrey Lake, and Mike Kijak for their insights on Wiremold following its purchase by LeGrand.Author received no outside funding to support him preparing this teaching case.
Citation
Grasso, L. (2022), "Performance measurement in a Lean organization: the case of the Wiremold company", , Vol. 18 No. 2, pp. 239-277. https://doi.org/10.1108/TCJ-02-2021-0039
Publisher
:Emerald Publishing Limited
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