What is the Performance Prism?
The Balanced Scorecard.
McKensie’s 7S Framework.
The BCG Matrix.
Porter’s Five Forces.
The Performance Prism. Say what? Because this one is not a household name, let’s summarize what it is.
In short, the Performance Prism is a measurement tool built around four key areas of the business: stakeholders, strategies, processes, capabilities. Below is an image of this framework.
The framework should answer five key questions in the measurement design process.
Stakeholder Satisfaction – who are the key stakeholders and what do they want and need?
Strategies – what strategies do we have to put in place to satisfy the wants and needs of these key stakeholders?
Processes – What critical processes do we require if we are to execute these strategies?
Capabilities – what capabilities do we need to operate and enhance these processes?
Stakeholder Contribution – what contributions do we require form our stakeholders if we are to maintain and develop these capabilities?
If you take the time to understand the performance framework, it makes much sense. However, application in small to mid-sized businesses may be problematic as training will be necessary for the users of this tool.
The Performance Prism was created by the Centre for Business Performance at Cranfield University in the UK. While the framework may be confusing to implement on your own, there are bits and pieces of if that can apply in your current business planning processes.