www.bradford.ac.uk/management

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