Metrics and performance measurement in operations management: dealing with the metrics maze

Abstract

Abstract Metrics provide essential links between strategy, execution, and ultimate value creation. Changing competitive dynamics are placing heavy demands on conventional metrics systems, and creating stresses throughout firms and their supply chains. Research has not kept pace with these new demands in an environment where it is no longer sufficient to simply let metrics evolve over time—we must learn how to proactively design and manage them. The intent of this paper is to convey the importance and need for metrics‐related research. An outline of the important characteristics of the metrics research topic is provided. Specifically, we address the functions of metrics; their focus and tense; their operational and strategic contexts; as well as discuss the distinction between metrics, metrics sets and metrics systems. Some initial theoretical grounding for the research topic is provided through agency theory. We conclude with a discussion of the intent and process of the special issue, and introduction of the associated articles.