A review of performance measurement: towards performance management

Abstract

Describes 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.