Performance Management Architecture

Implementing Performance Management Systems (PMS) at strategic level refers to gathering and analyzing information that allows the organisation to identify the strategies offering the highest potential for achieving the firm’s objectives.


The PMS develops a linkage and alignment between the management processes, such as target setting, decision-making, and performance evaluation, with the achievement of the desired strategic objectives (Neely et al., 2007).


It includes also the performance measurement system, which requires the use of a multi-dimensional set of performance measures for the planning and management of a business.


Balanced Scorecard (BSC)

Represents a strategic management tool, used in strategy formulation, organisational alignment and performance management. More than providing information on whether or not business targets are achieved, Balanced Scorecard also clarifies the impact on corporate strategy. This way, the BSC is a source of business intelligence, used in various organisational decision making processes, such as its initiative generation and prioritization. BSC structures its KPIs in four perspectives: financial, customer, internal-business processes, learning and growth.


Performance Prism

Represents a three dimensional model, with five facets – the top and bottom facets are Stakeholder Satisfaction and Stakeholder Contribution respectively, as the three side facets are Strategies, Processes and Capabilities. It aims to offer an exceptionally clear picture of who their key stakeholders are and what they want.


Management By Objectives (MBO)

Aims to align goals and subordinate objectives throughout the organization, including ongoing tracking and feedback in process to reach objectives. MBO's are often perceived as a form of planning. MBO can be easily associated with the development, deployment, and maintenance of organisational systems that are required for various business processes.


Value Based Management

Represents a management approach that ensures that organizations are management consistently on value, mostly maximizing the shareholder value. It includes the creation of value through strategy, managing for value (e.g. governance, change management, organizational culture) and measureing for value.


Knowledge Management (KM)

KM is a system and practice by itself that connects with performance management, by creating a necessary premises in order to efficiently manage the knowledge within the organisation. It focuses on collection and management of critical knowledge in order to increase its capacity for achieving results. As it is not an overall comprehensive process assured to improve performance, the  effectiveness of Knowledge Management towards reaching overall desired performance results depends on how well the enhanced, critical knowledge is applied in the organisation.



  • Neely, A. et al. (2007), Towards a Definition of a Business Performance Measurement System, International Journal of Operations and Production Management, Vol. 27, pp. 784-801. 

Strategic : Architecture


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