Interlinked System of Business Performance Management Indicators

For the effective management of a company, it is necessary to choose the right performance measures in order to influence the behavior of managers and employees towards the fulfillment of company´s strategic objectives and goals. Basic logical relations of decomposition of economic effectiveness measures and causal relations of value-creation process are taken into account in creating business performance measurement and management system. While logical relations of financial measures create the framework of performance management, causal relations of value-creation process make the factual base. Only by linking financial results and non-financial causes it is possible to explain, analyze and influence the value-creation process. By discovering the links between causes and effects it is possible to improve decision-making, communication and increase the level of knowledge.