Corporate performance operates in three dimensions

The evaluation of business performance is of crucial importance to the business community, and this is reflected in the size of the discourse addressing empirical research, critical evaluation of techniques available and theoretical perspectives. Considers such research against the purposes for the evaluation of business performance and the stakeholders involved in such evaluations. Argues that meaningful evaluation of performance can only be undertaken once the purposes of any evaluation have been clearly articulated and that appropriate measures can only be constructed once this articulation has taken place. Considers the various purposes of performance evaluation and the perspectives of the parties to any such evaluation before suggesting a framework for evaluation which recognizes the various needs to performance evaluation. Argues that this framework provides a suitable starting‐point for the construction of measures of performance which are appropriate for the purposes for which they will be used.