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Supply Chain Performance Measurement and Organizational Alignment
Abstract
The authors describe how organizations can leverage a maturity model approach in conjunction with foundational concepts of perspective-based performance evaluation models like Balanced Scorecard (BSC) to define comprehensive performance measurement framework. Maturity models are essentially a reflection of theories about how the capabilities of an organization evolve. Therefore, by design, they provide a roadmap to the next level of performance. The authors propose using maturity models as a structured way of identifying current capability or maturity level of any supply chain. They then provide guidance on selecting the right “causal linkages” between supply chain objectives and performance measures and define a mechanism for specifying more granular definitions of measures linked to strategic objectives for progressive levels of maturity. The authors survey widely used business process maturity models, current practices for measuring operational metrics, and then present a tiered framework for operational metric alignment and KPI governance, based on perspective-based design principles.
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