Performance indicator selection and evaluation of business process: The application of balanced scorecard philosophy

Business process evaluation is the basis of business process diagnosis, optimization and design. Nowadays business process is evaluated by some quantitative metrics(such as time, cost, etc) in a process owner-focused way, which is neither compatible with the viewpoint of customer-focus in BPR, nor a reflection of relation between business process and corporate strategy. Based on the philosophy of balanced scorecard, considering strategy influence and customer-value improvement, this paper develops a balanced scorecard-based business process evaluation methodology, and presents the idea of the approximate linearization of metrics and the concept of Ideal Balanced State Deviation Degree. At last, a case study is performed.