Sustainable Solutions for SCM

• 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.

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