An integrated performance management framework for a multi-business company

Abstract

A multi-business company is a complex entity. Evaluating corporate performance of such an organisation is even more challenging. Corporate performance is inherently multidimensional in nature, is viewed from various perspectives, and has to satisfy multiple objectives. It is multi-dimensional in the sense of being a function of many variables that drive firm performance; multi-perspectival, from various stakeholders' standpoints; and multi-objectives are to be optimised. So there is no single corporate performance evaluation tool that can be prescribed as a stand-alone gauge; however, a unified and holistic corporate performance management system can be developed from multiple tools. This paper attempts to bring together a variety of performance management tools that have evolved and developed in theory, and have been tested and applied in practice. In developing this convergence, first a set of criteria that answers the multi-dimensional, multi-perspectival, and multi-objective requirements of a firm's performance will be identified and weighted. Second, management tools that have been used either singly or in combination by multi-business companies are reviewed and ranked against the chosen criteria. Finally, an integrated model or framework that brings together and unifies the elements of these ranked performance management tools is proposed.