Integrating sustainability into industrial performance management

Abstract

Industrial Performance Management (IPM) is a structured approach that involves monitoring and assessing an industrial organization's performance to identify areas for improvement and implement strategies to increase efficiency, productivity, and profitability while reducing costs and minimizing waste. The ultimate goal of IPM is to enhance the overall viability of the organization, which can be achieved by optimizing operations, improving customer satisfaction, building a reputation for quality and reliability, and implementing sustainable practices and technologies The Sustainability Balanced Scorecard is a strategic management tool that helps organizations measure and manage their performance by tracking and reporting on key sustainability metrics across three main perspectives: economic, social and environmental. The relevance of the Sustainability Balanced Scorecard (SBSC) depends on the accurate representation and real reflection of an organization's sustainability strategy through the performance indicators used in the scorecard. Our research objective was to integrate sustainability into industrial performance management by implementing a Sustainability Balanced Scorecard. To achieve this, we conducted a case study on Lafarge Holcim Algeria, a cement industry company that considers sustainability as a core element of its strategy. We used interviews, surveys, observations, and analysis of internal and external documents to examine the company's sustainability practices. The research shows that Lafarge Holcim has a multifaceted system for managing its industrial performance, using indicators to measure progress towards its strategic objectives. The company also combines environmental and economic indicators, which is a positive outcome. To improve communication and achieve long-term success, Lafarge Holcim has adopted the Sustainability Balanced Scorecard (SBSC) we proposed for its performance management system.