Designing and utilising business indicator systems within enterprise models – Outline of a method

Abstract

The design of effective indicators and indicator systems requires a profound understanding of the relevant business context. Numerous relations and dependencies within an indicator system exist, which need to be analysed thoroughly: Many relations are based on implicit assumptions or sometimes not known by the management at all. This is of particular relevance for business success, since improperly used indicator systems may lead to `dysfunctional effects' like opportunistic behaviour. This paper outlines a method for designing and utilising indicator systems. It fosters a convenient and consistent definition and interpretation of indicator systems. Furthermore, it serves as a conceptual foundation for related performance management systems, such as dashboard systems.