Performance Management

Abstract

The purpose of this chapter is to help you design a performance management framework that will result in choosing, successfully implementing, and getting significant benefits from e-supply chain technologies. The framework is designed to stimulate action by pinpointing where the gaps are, and leveraging technology to bridge those gaps. This is done using a balanced scorecard revolving around five critical variables: value, variety, velocity, variability, and visibility. The maturity level of each of these critical variables is classified using a six-level capability maturity continuum: ignorance, awareness, understanding, approach, action, and culture. This integrated approach of combining critical variables, balanced scorecard, and capability maturity helps leverage technology for the right purposes, and significantly improves the performance and productivity of the supply chain.