Evolution and trends of business performance measurement concepts

Abstract

The paper shows the history of performance measurement. The performance measurement system should be designed in such a way that there is alignment of all measures with the organization's strategy, also it should be a dynamic and ever changing system that reflects the strategic responses of the organization to its market. The paper identifies outline of the development of performance measurement indicating that there are at least five identifiable phases of evolution. These start with the basic measurement of financial transactions, and which is focused on the traditional “make profit” perspective. The final and current phase is one in which the importance of the supply network emerges. Performance measurement has raised in the supply network environment from both local and global managerial perspectives.