Article ID: | iaor2006740 |
Country: | United Kingdom |
Volume: | 16 |
Issue: | 6 |
Start Page Number: | 531 |
End Page Number: | 544 |
Publication Date: | Sep 2005 |
Journal: | Production Planning & Control |
Authors: | Browne J., Folan P. |
Keywords: | measurement |
This paper discusses the development of a performance measurement system specifically designed for the requirements of the extended enterprise, via two performance measurement frameworks: the structural extended enterprise balanced scorecard and the procedural framework for the selection and implementation of measures. The extended enterprise balanced scorecard offers a four-perspective framework, implemented at each node, that provides a generic structure for the management of performance measures in the extended enterprise; while the procedural framework operates at both the local and holistic levels, to provide a step-by-step generic process towards performance measure selection and implementation. When combined, the two frameworks produce the basic extended enterprise performance measurement (EEPM) system, which was subsequently tested at a first-tier supplier in the European automotive industry. The characteristics of the extended enterprise are taken as a given starting point, and the paper concludes by pointing out the need for extended enterprise performance management to balance the developments outlined here.