Chapter 1
1. This statement is often used. See for example, Merchant and Van der Stede (2007), p. 477; Stringer (2006), p. 149, p. 354 (italics added).
2. Dishneau (1992).
3. Simons (1995a); Simons (1995b).
4. See Vroom (1964); Heneman and Gresham (2002).
5. Heneman and Gresham (2002), p. 90.
6. See Heneman and Gresham (2002); Lawler (2000); Vroom (1964).
7. Ferreira and Otley (2009).
8. Stringer (2007); Kaplan (2006b).
Chapter 2
1. EVA® is the registered trademark of Stern Stewart (http://www.eva.com/).
2. Hansen et al. (2003).
3. Hansen et al. (2003).
4. Sivabalan et al. (2009).
5. Kaplan (2010).
6. Libby and Lindsay (2010).
7. Blumentritt (2006).
8. Merchant and Van der Stede (2007).
9. Hamel and Prahalad (1993).
10. Hamel and Prahalad (1993).
11. Merchant (2006).
12. See Dye and Sibony (2007).
13. Argyris (1952).
14. Taylor (1916).
15. Hopwood (1972).
16. The name Astoria has been given to ensure confidentiality of the organization.
17. Frow et al. (2009); Marginson et al. (2006).
18. Frow et al. (2009).
Chapter 3
1. Adapted from Heitger et al. (1992).
2. Merchant and Van der Stede (2007).
3. Merchant and Van der Stede (2007).
4. See Hope and Frazer (2003); Morlidge and Player (2010).
5. Merchant and Van der Stede (2007).
6. Gibbs et al. (2004).
7. See Ahrens and Chapman (2002); Merchant et al. (2010).
8. Hopwood (1972).
9. Indjejikian (1999).
10. Libby and Lindsay (2010); Merchant (1990).
11. Stringer (2006).
12. Otley (1999); Merchant and Van der Stede (2007).
13. Merchant (1989).
14. Heneman et al. (2002).
15. Baker et al. (1988).
16. Libby and Lindsay (2007, 2010).
17. Libby and Lindsay (2010).
18. Bol (2008).
19. Jensen et al. (2004).
20. Merchant (2009).
21. Merchant and Van der Stede (2007).
22. Bol (2008); Merchant et al. (2010).
23. Gibbs et al. (2005).
24. Gibbs et al. (2004).
25. Gibbs et al. (2004).
26. Merchant et al. (2010).
27. Konovsky et al. (1992).
Chapter 4
1. Murphy (2001).
2. Murphy (2001).
3. Towers Perrin’s Annual Incentive Plan Design Survey in 1997 shows internal standards are commonly used in incentive plans, with only 11% of companies surveyed using external standards (Murphy, 2001).
4. These are discussed in most papers on benchmarking, including Elmuti and Kathawala (1997).
5. Northcott and Llewellyn (2003).
6. Kaplan (2005).
7. Hansen et al. (2003).
8. Matsumura and Yong Shin (2006).
9. Matsumura and Yong Shin (2006).
10. Merchant and Van der Stede (2007).
11. Libby and Lindsay (2010).
12. Argyris (1952).
13. Schiff and Lewin (1970).
14. Merchant and Van der Stede (2007).
15. Leone and Rock (2002).
16. Matsumura and Yong Shin (2006).
17. Zimmerman (2006).
18. Leone and Rock (2002).
19. Indejikian and Nanda (2002).
20. Mortidge and Player (2010) provides a good overview of forecasting for performance targets.
21. Zimmerman (2006).
22. Neely et al. (2001).
23. Hackett Group (2008).
24. Collier and Berry (2002).
25. Anthony and Govindarajan (2007).
26. The origins of zero-based budgeting can be traced to the late 1900s. See Burrows and Syme (2000).
27. Zimmerman (2006).
28. Neely et al. (2001).
Chapter 5
1. Merchant and Van der Stede (2007).
2. Locke and Latham (1990, 2006).
3. There are different definitions of a stretch target; sometimes it refers to Olympian targets (Kerr and Landaur, 2004).
4. Merchant and Manzoni (1989); Gibbs et al. (2004); Merchant and Otley (2007).
5. Stringer (2006).
6. Locke and Latham (1990, 2006).
7. Latham and Baldes (1975).
8. Latham and Baldes (1975).
9. Locke and Latham (2002); Latham and Baldes (1975).
10. Locke and Latham (2002).
11. Taylor (1916).
12. Taylor (1916), pp. 48–49.
13. While the core principles of goal-setting theory at the individual level have been well supported, goal-setting studies have primarily been based on experiments with nonmanagers (often student surrogates) doing simple tasks (Locke & Latham, 1990).
14. Locke and Latham (2006, 2002).
15. Ordonez et al. (2009).
16. Schweitzer et al. (2004).
17. Kerr and Landauer (2004).
18. Chan (1998).
19. Hopwood (1974).
20. Yerkes-Dodson Law, see Yerkes and Dodson (1908).
21. Campbell and Furrer (1995); Onyemah (2008).
22. Libby and Lindsay (2010).
23. Merchant and Van der Stede (2007).
24. Merchant and Manzoni (1989).
25. Merchant (1990); Merchant and Manzoni (1989).
26. Adapted from Merchant and Otley (2007); Jensen (2001).
27. Merchant and Manzoni (1989).
28. Jensen et al. (2004).
29. Data from the Towers Perrin Annual Incentive Plan Survey in 1997 (cited in Murphy, 2001).
30. Jensen (2001).
31. Libby and Lindsay (2010).
32. Merchant and Van der Stede (2007).
33. Watson Wyatt Worldwide, Executive pay in 2002: Compensation in turbulent times, (2001/2002 survey report, p. 12), cited in Merchant and Van der Stede (2007).
34. Walsh (2000).
35. Merchant (1990).
36. Merchant et al. (2010).
37. Merchant and Van der Stede (2007).
38. Haka and Krishnan (2005).
Chapter 6
1. Merchant (2006).
2. Hansen (2010); Ittner and Larcker (2003); Kaplan and Norton (2008); Otley (1999).
3. Ittner and Larcker (2003).
4. Ittner and Larcker (2003).
5. Cohan (2002).
6. Ittner et al. (2003); Lipe and Salterio (2000).
7. Luft and Shields (2001); Schiff and Hoffman (1996).
8. Merchant (2006).
9. Kaplan and Norton (2008).
10. Merchant and Van der Stede (2007), p. 477.
11. Stringer (2006).
12. Ittner and Larcker (2003).
13. Kaplan and Norton (2008).
14. Ittner and Larcker (2003).
15. Ittner and Larcker (2003).
16. See Ahrens and Chapman (2002); Merchant and Riccaboni (1990); Otley (1990).
17. Ittner and Larcker (2003).
18. Ittner et al. (1997).
19. Ittner and Larcker (2003).
20. Ittner and Larcker (2003).
21. Ittner and Larcker (2003).
22. Merchant (2006).
23. Merchant (2006).
24. Stringer (2006).
25. Merchant (2006); Anthony and Govindarajan (2007).
26. Ittner and Larcker (2003).
27. Ittner et al. (2003).
28. Merchant (2006).
29. For example, Banker and Datar (1989); Feltham and Xie (1994).
30. Kerr (1975).
31. Ittner and Larcker (2003).
32. This example was conducted as part of an MBA research project.
33. Merchant and Van der Stede (2007).
34. Merchant (2009).
Chapter 7
1. Adapted from Neely et al. (2001), p. 6–7.
2. Kaplan and Atkinson (1998).
3. Kaplan and Anderson (2004).
4. Kaplan and Anderson (2004).
5. Kaplan and Norton (2008).
6. Cooper and Kaplan (1998).
7. Kaplan and Anderson (2007). For the Sippican case study, see R. S. Kaplan, “Sippican Corporation (A), Case 9-106-060 (Boston: Harvard Business School, 2006).
8. Adapted from Brimson and Antos (1999).
9. Stratton (2006).
10. Hansen et al. (2003)
11. Hope and Fraser (2003a). The Beyond Budgeting Roundtable website is available at http://www/bbrt.org
12. Bogsnes (2007).
13. Lindsay and Libby (2007).
14. Hope and Fraser (2003a).
15. Morlidge and Player (2010); Bogsnes (2007).
16. Bogsnes (2007).
17. Bogsnes (2007).
18. Bogsnes (2007).
19. Hope and Fraser (2003b).
20. Bogsnes (2007).
21. Hope and Fraser (2003b).
22. Bogsnes (2007).
23. Statoil (2010).
24. Merchant and Van der Stede (2011).
25. Merchant and Van der Stede (2011).
26. Merchant and Van der Stede (2011).
27. Bogsnes (2007).
28. Merchant and Van der Stede (2011), p. 5, footnote 5.
29. Merchant and Van der Stede (2011), p. 5, footnote 5.
30. Hansen et al. (2003).
31. Hope and Fraser (2003a).
32. Matsumura and Yong Shin (2006).
33. Carter et al. (2009).
34. Bogsnes (2007).
35. Bogsnes (2007).
36. Bogsnes (2007).
37. Ekholm and Wallin (2000).
38. Ekholm and Wallin (2000).
39. Libby and Lindsay (2010).
40. Libby and Lindsay (2010).
41. Sivabalan et al. (2009).
42. Libby and Lindsay (2010).
43. Hansen and Van der Stede (2004).
44. Sivabalan et al. (2009).
45. Ekholm and Wallin (2000).
46. Libby and Lindsay (2010).
47. Libby and Lindsay (2010).
48. Bogsnes (2007).
Chapter 8
1. Locke and Latham (1990, 2006).
2. Kaplan (2010).
3. Graham et al. (2006).
4. Merchant and Manzoni (1989).
5. Porter (1996).
6. Merchant and Manzoni (1989); Merchant (1990).
7. Merchant and Manzoni (1989).
8. Merchant and Manzoni (1989); Merchant (1990).
9. Merchant and Manzoni (1989); Merchant (1990).
10. Graham et al. (2006).
11. Graham et al. (2006).
12. Adapted from Merchant and Van der Stede (2007, p. 477) and Stringer (2006, p. 149, p. 354). Italics added.