A review of performance measurement: Towards performance management

Describes the evolution of performance measurement 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 nonlogistics 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.