While the indicators can be numerous, there are three broad categories of economic indicators: Leading indicators, such as consumer durables, net business formations and share prices, are used to predict the future movements of an economy. Coincident indicators, which include such things as GDP, employment levels and retail sales, are seen with the occurrence of specific economic activities.
Received Jun 17; Accepted Oct Associated Data The datasets supporting the conclusions of this article are included within the article and its additional files.
Abstract Measuring the performance of business processes has become a central issue in both academia and business, since organizations are challenged to achieve effective and efficient results. Applying performance measurement models to this purpose ensures alignment with a business strategy, which implies that the choice of performance indicators is organization-dependent.
Nonetheless, such measurement models generally suffer from a lack of guidance regarding the performance indicators that exist and how they can be concretized in practice. To fill this gap, we conducted a structured literature review to find patterns or trends in the research on business process performance measurement.
The study also documents an extended list of process-related performance indicators in a systematic manner by further categorizing them into 11 performance perspectives in order to gain a holistic view. Managers and scholars can consult the provided list to choose the indicators that are of interest to them, considering each perspective.
The structured literature review concludes with avenues for further research. Business process, Performance measurement, Indicator, Measure, Metric, Structured literature review, Systematic literature review Background Since organizations endeavor to measure what they manage, performance measurement is a central issue in both the literature and in practice Heckl and Moormann ; Neely ; Richard et al.
Performance measurement is a multidisciplinary topic that is highly studied by both the management and information systems domains business process management or BPM in particular. Different performance measurement models, systems and frameworks have been developed by academia and practitioners Cross and Lynch ; Kaplan and Norton; EFQM ; Kueng ; Neely et al.
While measurement models were initially limited to financial performance e.
Perhaps the best known multi-dimensional performance measurement model is the Balanced Scorecard BSC developed by Kaplan and Norton, which takes a four-dimensional approach to organizational performance: Even today, the BSC is by far the most used performance measurement approach in the business world Bain Company ; Sullivan ; Ulfeder In particular, an organization can do more with its current resources by boosting the effectiveness and efficiency of its way of working i.
In this regard, academic research also suggests a strong link between business process performance and organizational performance, either in the sense of a causal relationship Melville et al. Nonetheless, performance measurement models tend to give little guidance on how business process performance indicators can be chosen and operationalized Shah et al.
They are limited to mainly defining performance perspectives, possibly with some examples or steps to derive performance indicators Neely et al.
Whereas fairly large bodies of research exist for both performance models and business processes, no structured literature review of process performance measurement has been carried out thus far.
To the best of our knowledge, existing reviews cover one or another aspect of performance measurement; for instance, reviews on measurement models or evaluation criteria for performance indicators Heckl and Moormann ; Neely ; Richard et al.
To some extent, this lack of guidance can be explained by the fact that performance indicators are considered organization-dependent, given that strategic alignment is claimed by many measurement models such as the BSC Kaplan and Norton Although the selection of appropriate performance indicators is challenging for practitioners due to the lack of best practices, it is also highly relevant for performance measurement.
This study enhances the information systems literature, which focuses on the design and development of measurement systems without paying much attention to essential indicators.
To fill this gap, our study presents a structured literature review in order to describe the current state of business process performance measurement and related performance indicators.
Accordingly, the study addresses the following research questions.
What is the current state of the research on business process performance measurement? Which indicators, measures and metrics are used or mentioned in the current literature related to business process performance? The objective of RQ1 is to identify patterns in the current body of knowledge and to note weaknesses, whereas RQ2 mainly intends to develop an extended list of measurable process performance indicators, categorized into recognized performance perspectives, which can be tailored to diverse purposes.
This list could, for instance, serve as a supplement to existing performance measurement models. Practitioners can use the list as a source for best practice indicators from academic research to find and select a subset of performance indicators that fit their strategy.
The study will thus not address the development of specific measurement systems but rather the indicators to be used within such systems.
To make our intended list system-independent, we will begin with the BSC approach and extend its performance perspectives.Management discussion and analysis (MD&A) is the portion of a public company's annual report in which management addresses the company’s performance over the previous twelve months.
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