A communications framework for extended enterprise performance measurement

Abstract

Inter-organizational performance measurement communication is a neglected facet of the performance measurement literature. Performance measurement (PM) is undergoing a transformation in today's business environment, consistent with the development of inter-organizational paradigms, such as the virtual enterprise, extended enterprise (EE), and supply chain management. In this paper the communications issue is discussed using an EE mindset, and the concepts behind a communications framework are presented. This utilizes the concept of an EE host – the member of the EE with responsibilities for formulating, detailing and distributing information concerning the EE performance measurement system to other EE nodes. The framework design is based upon standardized intranets located at each partner in the EE. This provides the necessary elements to enable different organizations in the EE to maintain PM databases locally, while ensuring the existence of a centrally located database maintained by the EE host. A case study is presented that focuses upon the implementation of the EE performance measurement system at the EE host.