Extended Enterprise Metrics: The Key To Achieving Synthesized Effectiveness

Abstract

In this paper we argue that the Extended Enterprise is a natural response to changing competitive dynamics and is predicated upon adapting some of the traditional performance measures. We examine how the constructs of the Balanced Scorecard, Economic Profit (or Economic Value Added) and boundary spanning metrics such as the cash-to-cash cycle are useful tools for developing metrics for the Extended Enterprise. We illustrate that when these measures are jointly adopted they can help to drive the integrating behaviors that epitomize the truly revolutionary Extended Enterprise. The key phrase here is integrative – what is good for one must be good for all since the true competitive battle is fought supply chain against supply chain.