A framework for performance measurement and management based on axiomatic design and analytical hierarchy process

Abstract

Performance measurement and management (PMM) is a key practice to drive modern businesses. The literature available in this field highlights a certain maturity regarding performance measurement systems, while few frameworks have been proposed for PMM, which is today target. This paper presents a new framework for PMM, namely Business System Design Decomposition (BSDD), based on the strengths of the Axiomatic Design (AD) and the Analytic Hierarchy Process (AHP) techniques. The BSDD framework, offers a holistic approach to PMM, identifies cause-effects relationships in business processes, measures the performance versus stakeholders and offers interlinking between performance indicators. The result, is a deep understanding of the business environment and a real step forward PMM. © 2010 Springer-Verlag Berlin Heidelberg.