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• The solemeasurement of performance is not enough and should be supplemented
with management aspects.
• There is no common definition of performance management (systems) and it
is very much dependent on the point of view, the tasks and the environment;
also a manageable degree of complexity for a PMMS has to be found.
• Several propositions for performance measurement and management systems
exist that have different focuses and have been suggested to fulfil different
needs.
Therefore, this contribution will structure the elements of PMMS in a simple and
general way to keep the complexity manageable. However, we take into account the
links to the other elements to create a performance system that is able to function in a
given environment (see Figure 3.3).
Figure 3.3 PMMS within the management and business system
Firstly, two different sub-systems can be distinguished:
• The business system on the right hand side can be structured according to
different perspectives: as organisational structure, as process model, as social
system of employees or other perspectives such as data or material flows.
This structure forms the model how the management system including the
PMMS “sees” the business system. For the purpose of this chapter we focus
on a business system in a supply chain context that adds interorganisational
challenges for the management system.
• The management system contains in itself different sub-systems such as the
goal system, the leadership system and the PMMS as a vital and coordinating
element of the management system. Other elements can also be seen as part
of the management system, such as the internal control system that is used
to enforce compliance rules. A focus of the management discussed here lies
in the task to manage sustainability.