Published by MBA Skool Team, Last Updated: May 16, 2012
What is Performance Prism?
Business performance is a concept that has many dimensions and driven by multiple parameters. Most of the existing frameworks do capture the components of performance measurement, but in isolation and not as one integrated unit. This is solved by the performance prism framework.
Firstly, it talks about understanding the requirements of the stakeholders of the organisation- Investors, Suppliers, Customers, Employees, and Intermediaries etc. This step is very essential to build the strategies in alignment with the goals of the stakeholders. Strategies should be formed only after understanding the key stakeholder needs. In order to execute these strategies, the processes needed are then identified and to support the functioning of the processes, the capabilities of the organisation in terms of manpower and other resources are then addressed. Finally, in order to support these capabilities, it becomes important to understand the type and extent of contribution from the stakeholders to ensure sustainability.
Just like a prism which exhibits the multiple components and the complexity of a simple white ray of light, this model shows the complexity involved in performance management and measurement and a comprehensive approach to the concept.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 5 categories.