Performance Prism
Performance Management Fundamentals
Lecture 9
The Performance Prism
• Stakeholder satisfaction
• Strategies
• Processes
• Capabilities
• Stakeholder Contribution
The Five Facets of the Performance Prism
The performance prism; adopted from Neely (2002 )
The Premise
• Investors
• Employees
• Customers & Intermediaries
• Regulators & Communities
• Suppliers
Successful organisations
understand the requirement to
satisfy the Wants and Needs
of multiple Stakeholders
Organisations have
reciprocal Wants and Needs
of its stakeholders
The performance prism, Neely et al. ( 2002 )
The Performance Prism
Processes
Satisfaction
Delivery
Strategic
Direction
Solutions
Development
Stakeholder
Demand
Stakeholder
Satisfaction
Stakeholder
Contribution
The Facets
The links between them are through a cause-effect relationship
Stakeholder
Satisfaction
Measures
Strategies
Measures
Processes
Measures
Capabilities
Measures
Stakeholder
Contribution
Measures
Stakeholder Perspective
Shareholders
Customers
Employees
Communities
Who are our key stakeholders and
what do they want and need?
Are we going to deliver
against our shareholder
expectations for the year ?
Are we delivering against
our customer’s
expectations ?
Are we delivering against
our employee’s
expectations ?
Are we delivering against
our external partner’s
expectations ?
Processes
Satisfaction
Delivery
Strategic
Direction
Solutions
Development
Stakeholder
Demand
Stakeholder
Satisfaction
Stakeholder
Contribution
Strategies Facet
What strategies are we pursuing to
satisfy these wants and needs?
• Corporate
• Business Unit
• Operating
• Brands / Product /
Service
Shareholders
Customers
Employees
Communities
Are our cost and revenue
management strategies
working ?
Are our customer
service strategies
working ?
Are our employee
satisfaction
strategies working ?
Are our external
partners
management
strategies working ?
Processes
Satisfaction
Delivery
Strategic
Direction
Solutions
Development
Stakeholder
Demand
Stakeholder
Satisfaction
Stakeholder
Contribution
Process Facet
•
Generate Demand
•
Develop Products and Services
•
Plan & Manage Enterprise
•
Fulfil Demand
Processes
Satisfaction
Delivery
Strategic
Direction
Solutions
Development
Stakeholder
Demand
Stakeholder
Satisfaction
Stakeholder
Contribution
Shareholders
Customers
Employees
Communities
Are the processes in place
to support our cost and
revenue management
strategies?
Are the processes in
place to support our
customer service
strategies?
Are the processes in
place to support our
employee
satisfaction
strategies?
Are the processes in
place to support our
external partner
management
strategies?
What processes do we need to put in
place to enable us to achieve these
strategies?
Capability Facet
Shareholders
Customers
Employees
Communities
Do we have capabilities to
support our cost and revenue
management strategies in both
the short and long term?
Do we have capabilities to
support our customer
service strategies in both
the short and long term?
Do we have capabilities to
support our employee
satisfaction strategies in
both the short and long
term?
Do we have capabilities
to support our external
partner management
strategies in both the
short and long term?
What capabilities do we require if
we are to operate organisation
processes?
Processes
Satisfaction
Delivery
Strategic
Direction
Solutions
Development
Stakeholder
Demand
Stakeholder
Satisfaction
Stakeholder
Contribution
• Technology
• Practices
• Infrastructure
• People
Stakeholder Perspective
Shareholders
Customers
Employees
Communities
Are we getting what we
want and need from
shareholders ?
Are we getting what
we want and need
from customer ?
Are we getting what
we want and need
from employees ?
Are we getting what we
want and need from
external partners ?
What do we want and need from our stakeholders to
enable all of company business performance
management to happen?
Processes
Satisfaction
Delivery
Strategic
Direction
Solutions
Development
Stakeholder
Demand
Stakeholder
Satisfaction
Stakeholder
Contribution
• Investors
• Customers &
Intermediaries
• Regulators &
Communities / Pressure
Groups
• Suppliers
• Alliance Partners
• Employees
How it affects measures design
Stakeholder
Wants and Needs
Who are our key stakeholders and
what do they want and need?
Strategies
What strategies are we pursuing to
satisfy these wants and needs?
Processes
What processes do we need to put in place
to enable us to achieve these strategies?
Capabilities
What capabilities do we require if we
are to operate these processes?
Organisation
Wants and Needs
What do we want and need from our
stakeholders to enable all of this to happen?
• Addresses all Stakeholders
• Identifies critical Strategy realization measurement issues
• Focuses on measuring the key Process architecture and design
elements
• Ensures essential Capability development components get
included
• Allows ‘drilling’ to a framework
• Is three-dimensional
Performance Prism
– Key Features