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Constructing the integrated strategic performance indicator system for manufacturing companies

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  • Yanlong Cao
  • Kui Zhao
  • Jiangxin Yang
  • Wei Xiong

Abstract

The performance indicator system based on balanced scorecard (BSC) is the vertical breakdown proceeding from the strategy, it neglects considering the collaborative relationship between the upstream and downstream departments. This paper proposes a design method of company integrated strategic performance indicator system based on BSC and the ‘suppliers-input-process-output-customers’ model (SIPOC). First, the strategy map and BSC are adopted to develop the company-level key performance indicators (KPIs), which are gradually broken down to different departments and forming department KPIs. Then, the common performance indicators (CPIs) are determined based on the SIPOC process analysis; thus, achieving the synergy between different departments. Finally, the departmental performance indicators system can be constructed by composing KPIs and CPIs together. While achieving the strategic vertical breakdown, this method can bring about the synergy between departments in horizontal operation. Also, a case study from a manufacturing company is performed to verify the feasibility of the method.

Suggested Citation

  • Yanlong Cao & Kui Zhao & Jiangxin Yang & Wei Xiong, 2015. "Constructing the integrated strategic performance indicator system for manufacturing companies," International Journal of Production Research, Taylor & Francis Journals, vol. 53(13), pages 4102-4116, July.
    • Handle: RePEc:taf:tprsxx:v:53:y:2015:i:13:p:4102-4116
    DOI: 10.1080/00207543.2014.994715
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    Cited by:

    1. Ivo Hristov & Antonio Chirico & Riccardo Camilli, 2022. "The role of Key Performance Indicators as a performance management tool in implementing corporate strategies: A critical review of the literature," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2022(1), pages 117-151.
    2. Cheng, Li & Wang, Yue & Zhang, Xiao & Zhu, Di, 2023. "Double-edged sword of global demand heterogeneity: How service multinationals capture the benefits and mitigate the costs of managing customer knowledge," Journal of Business Research, Elsevier, vol. 154(C).

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