Performance Excellence: Path to Integrated Management and Sustainable Success
Performance measurement traditionally focuses on financial measures, such as sales turnover, profit, debt and return on investment. However, traditional financial measures do not match entirely with the competencies and skills companies required to face today’s business environment. The complexity of managing an organization today requires “integrated management” that means managers being able to view performance in several areas simultaneously. Rather than analyzing performance from an historical perspective, it is important to understand organizational excellence, which potentially leads to success of a business in the future.
The first condition to improve, and ultimately to achieve organizational excellence, is to develop and implement a system of performance measurement criteria that goes beyond the presentation of financial figures and incorporates other non-financial success factors.
This paper provides with a performance measurement system built upon what many researchers and practitioners believe are the critical success factors for organizational excellence. By exploring the potentialities of a sound methodology, based on structural equation modeling and the system for performance measurement, the author in this paper will guide the reader the impact of different performance dimensions on the organization and its excellence. Such a performance measurement system goes beyond simple internal measurements and assessments of performance from external stakeholders. In reality it provides a solid base for an integrated management of the organization.
KeywordsCustomer Satisfaction Integrate Management External Stakeholder Performance Measurement System Critical Success Factor
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