Lean and performance measurement

Abstract

Abstract Purpose – Ostensibly, less than 10 per cent of UK organisations accomplish successful lean implementations. A refined system to the one offered by the balanced scorecard is needed. The purpose of this paper is to propose a robust system that not only focuses on the intangible and intellectual assets but also embraces various time horizons and the interests of multiple stakeholders. Design/methodology/approach – The dynamic multi‐dimensional performance (DMP) framework has been adapted which enables organisations to successfully gauge, in a holistic approach, whether lean has in fact proven successful in their respective organisations. Findings – The DMP framework embracing five dimension proves to be more robust than its predecessors and stresses the need to utilise a smaller set of multidimensional metrics which are closely aligned to an organisation's strategies. Research limitations/implications – Intangible assets have become the major source for competitive advantage. Tangible assets accounted for a book value of less than 20 per cent of companies' market values in 2000. Organisations need to promote a portfolio of measures directed at both the internal and external environments. Practical implications – Despite the popularity of the balanced scorecard, it has recently proven inadequate in certain circumstances. The proposal enables managers to bridge the gap between the real and aspired performance. Originality/value – The DMP model presented in this paper has generic appeal and can be applied to quite disparate organisations. It provides a good barometer for multiple time horizons and facilitates the examination of a wider view of organisational success.