A review of performance measurement: towards performance management

Abstract

ReviewCopyright © 2005 Elsevier. NOTICE: this is the author’s version of a work that was accepted for publication in Computers in Industry. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Computers in Industry (2005), DOI: 10.1016/j.compind.2005.03.001Describes the evolution of performance measurement (PM) in four sections: recommendations, frameworks, systems and inter-organisational performance measurement. Measurement begins with a recommendation, which is a piece of advice related to the measures or structure of performance measurement; frameworks can be dichotomised into a structural and procedural typology that suggests structural framework development has outstripped procedural framework development. The basic requirements for a successful PM system are two frameworks—one structural and one procedural as well as a number of other performance management tools. Inter-organisational performance measurement may be divided into supply chain and extended enterprise performance measurement: the former relying solely on traditional logistics measures, while the latter incorporates the structural aspects of the supply chain system and adds non-logistics perspectives to its measurement arena. Finally, the encroachment of the performance measurement literature into the processes related to performance management is examined, and areas for future research are suggested