Adopted from :

Professor Andy Neely and Chris Adams

PERFORMANCE
PRISM
Marc J. Epstein distinguished research professor at
the Jesse H. Jones Graduate School of
Management, Rice University, Houston, USA
Companies must try to
understand better what their
stakeholders needs are and
then deal with those needs
ahead of time rather than
learn about them later.
Performance Prism is a Performance Measurement System
created in 1999, which is built on previous frameworks, such as
Balanced Scorecard, and Excellence Models (Neely et. al. 2002)
Background
Now and increasingly in the future the best way for
organizations to survive and prosper in the long term will be to
think about the wants and needs of all of their important
stakeholders and endeavor to deliver value to each of them.
Stakeholder not only shareholder and customer but also
employee and supplier

Stakeholder Revolution
Framework Performance Prism
Framework Performance Prism (2)
One of the great fallacies of performance measurement is that
measures should be derived from strategy.
Yet to derive measures from strategy is to misunderstand
fundamentally the purpose of measurement and the role of strategy.
Performance measures are designed to help people track whether
they are moving in the direction they want to. They help managers
establish whether they are going to reach the destination they set out
to reach.
Strategy, however, is not about destination. Instead, it is about the
route you choose to take how to reach the desired destination
START WITH STAKEHOLDERS NOT
STRATEGIES
APPLYING THE PERFORMANCE PRISM TO MEASURES DESIGN
Five distinct, but logically interlinked, perspectives on performance have been identified
together with five key questions for measurement design:
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 from our stakeholders if we
are to maintain and develop these capabilities?

Stakeholder and Organization Wants and Needs (1):