A Holistic Performance Management Approach in Business Networks

Abstract

Companies want to achieve a sustainable financial success through process and performance improvements. Increasing the company’s performance is a good way for sustainable success. Typically, the success is measured by process output metrics. This output mirrors the performance of a company’s processes in the end. It is obvious that for being able to cope with complex business network structures in a derivative supply-demand-structure as well as collaboration cooperation incentives, performance needs to be managed across the whole network to strengthen the own network centrality. The present paper contributes to the development of a new holistic Performance Management in business networks. Thus, a Network Performance Wheel - for a more network oriented approach, and a Process Management Balanced Scorecard - to close the gap between internal and external impacts, are introduced. Also, a PM-VICTORY model is launched for implementing the whole network directed Performance Management.