Performance Prism

 

Performance Prism sets out to be a holistic performance measurement framework (Neely, Adams & Kennerley, 2002). Being a three dimensional model, in five perspectives, it addresses all of an organization’s major stakeholder groups: investors, customers & intermediaries, suppliers, regulators and communities. It addresses the key business issues, asking critical questions for decision makers to think through the links between the measures used (Neely, Adams & Crowe, 2001). The principle behind the Performance Prism is to have a limited number of measures in order to give clarity to what the organisation is trying to achieve (Centre for Business Performance, Cranfield School of Management, 2009).

 

Implementation

Seen by its authors as a comprehensive framework, the Performance Prism was designed to assist performance measurement selection – the vital process of picking the right measures from a different perspective than that of other performance frameworks such as the better known Balanced Scorecard (Neely, Adams & Crowe, 2001). Thus it looks first at the needs of the major organizational stakeholder groups and secondly it analyses the best strategies that needs to be employed to satisfy those needs.

 

The five facets of the Performance Prism

performance_prism_1235

Source: Neely, Adams & Crowe, (2001)


Stakeholder Satisfaction (Who are the key stakeholders and what do they want and need?)

Strategies (What critical processes do we require if we are to execute these strategies?)

Processes (What capabilities do we need to operate and enhance these processes?)

Capabilities (What contributions do we require from our stakeholders if we are to maintain and develop these capabilities?)

Stakeholder Contribution (What strategies do we have to put in place to satisfy the wants and needs of these key stakeholders?)

 

Evolution

The Performance Prism measurement framework has been developed in close co-operation by the Centre for Business Performance at Cranfield School of Management (formerly at University of Cambridge) and the Process Excellence Core Capability Group of Andersen Consulting. It is currently being applied to a number of other organisations and conditions in order to thoroughly test its applicability in the field.

 

References

  • Centre for Business Performance, Cranfield School of Management, (2009), literature review of performance management and measurement, available at: http://www.idea.gov.uk/idk/aio/306299 (accessed  12 December 2010).
  • Neely, A., Adams, C. & Kennerley, M. (2002), The Performance Prism: The Scorecard for Measuring and Managing Business Success, Financial Times Prentice HallGreat Britain.
  • Neely, A., Adams, C. & Crowe, P. (2001), The performance prism in practice, Measuring Business Excellence, Vol. 5, No. 2, pp. 6-12.

Integration : Systems

 

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