Designing the Lean Enterprise Performance Measurement System

Enterprises today are evolving from traditional, vertically integrated enterprises to dynamic, network-centric enterprises. This evolution has resulted in an increase in size, scope, and complexity. Traditional fields of study focus on the use of decomposition approaches to study enterprises through individual lenses such as strategy, organization design, and theory of the firm, to name a few. These approaches enable a deep understanding of specific aspects of the enterprise; however the resultant ‘big picture’ view of the enterprise is often lost in the analysis process. The engineering systems lens views the enterprise as ‘a system of systems’ that consists of multiple interconnected and interacting systems such as supply networks, manufacturing systems, human resource development, information systems, accounting, strategic planning, etc. This perspective provides a deeper understanding of the synergistic relationships across various systems within the enterprise, and provides insight into how
value is delivered to constituent stakeholders.