A balanced measurement portfolio

Key issues Who are the key stakeholders in a business, and what needs to be achieved in order to satisfy them How can a balanced set of measures of performance be developed in order to address stakeholder satisfaction and stakeholder contribution  

Many organisations have suffered from undue emphasis on particular measures of performance within the firm. For example, a preoccupation with labour productivity may lead to excessive stocks of inbound parts ( Do not mn out of raw materials otherwise bonuses will suffer ). Such a preoccupation may also lead to excessive stocks of outbound products, because the most important priority is to keep workers busy, whether the product can be sold or not. While this priority may be good for productivity, it may well dismpt flow in the supply network inbound parts are ordered too early, and outbound products are made too early. What is good for one measure (productivity in this case) is bad for others (inventories and material flow). 

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To effectively measure safety performance that yields a balanced view of progress and simultaneously provides real control over that progress, it is critical to recognize that outputs are the result of a combination of many cultural and systemic factors. A balanced measurement portfolio with clear and useful information about the culture, systems, and outputs catalyzes subsequent improvements in all three measures. 

A balanced measurement portfolio balancing the needs of all stakeholders. 

Financial measures that are rooted in the past are insufficient for taking logistics decisions in today s fast-moving environment. A balanced measurement portfolio is called for, one that takes into account the needs of different stakeholders in a business. A balanced measurement portfolio is extended into the supply chain by means of the supply chain operations reference model (SCOR). 

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