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Measuring your way to profit

Bititci, Umit (1994) Measuring your way to profit. Management Decision, 32 (6). pp. 16-24.

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Abstract

The traditional cost accounting-based business performance measures used today fail to provide adequate support to allow the use of modern management techniques and development of optimum business and functional strategies. Although these traditional techniques have a certain value they must be supported by alternative non-financial performance measures which promote organizational integration by ensuring that all strategic and operational activities are streamlined towards common objectives. Describes, with case studies, a methodology which leads to development of an integrated set of performance measures on which measurable business and functional strategies may be developed. The methodology described has been proven through a number of industrial consultancy assignments and results in considerable benefits.