![]() |
Measuring Stakeholder Value |
![]() |
Learn more: Articles | Books | Dictionary | Faq | Home | Leaders | Organizations | Search
|
Performance Prism |
Summary of the Performance Prism. Abstract |
Cranfield University |
The five facets of the Performance Prism: 1. Stakeholder Satisfaction 2. Stakeholder Contribution 3. Strategies 4. Processes 5. Capabilities These five perspectives are distinct, but logically interlinked. Philosophy
The Performance Prism is based on
the belief that those organisations aspiring to be successful in the
long term within today’s business environment have an exceptionally
clear picture of who their key stakeholders are and what they want.
According to Performance Prism vision, one of the great fallacies of performance measurement is that measures should be derived from strategy. Listen to any conference speaker on the subject. Read any management text written about it. Nine times out of ten the statement will be made – “derive your measures from your strategy”. This is such a conceptually appealing notion, that nobody stops to question it. Yet to derive measures from strategy is to misunderstand fundamentally the purpose of measurement and the role of strategy. That's why the Performance Prism starts its process with thinking about the Stakeholders and what they want. Five key questions for measurement design:
1. Stakeholder Satisfaction – who are
the key stakeholders and what do they want and need? Complexity and the Prism The history of Value Based Management is basically a history of increasing complexity. A prism refracts light. It illustrates the hidden complexity of something as apparently simple as white light and decomposes it in its elements. So it is with the Performance Prism. It illustrates the hidden complexity of our corporate world. Single dimensional, traditional frameworks pick up elements of this complexity. While each of them offers a unique perspective on performance, it is essential to recognise that this is all that they offer – a single uni-dimensional perspective on performance. Performance, however, is not uni-dimensional. To understand it in its entirety, it is essential to view from the multiple and interlinked perspectives offered by the Performance Prism. T I P : Here you can discuss and learn a lot more about corporate performance management and the Performance Prism. Compare: Balanced Scorecard | Strategy Maps | Value Mapping | The Strategy- Focused Organization | Intangible Assets Monitor | IC Rating
|
About us | Advertise | Privacy | Support us | Terms of Service ©2022 Value Based Management.net - All names ™ by their owners
|