The Performance Prism Model By Neely Business Essay

The Performance Prism (2002) is a model that is produced by Neely, Adams and Kennerley to help expand aid organisations in their quest for measuring the overall performance with their operations. The makers of this model suggest that for organisations functioning within almost any given industry, the main aspect of management is to provide on the goals of the stakeholders associated with this company. The Performance Prism was created to assistance with the complex interactions that organisations often own with their various stakeholders within the context of its operating environment. It provides an ground breaking and holistic platform that directs management focus on what is important for long term success and viability and helps organisations to design, build, operate and recharge their performance dimension systems in a way that is relevant to the precise conditions that they face of their given industry.

This model endeavors to distinguish itself from other similar models including the Balanced Scorecard by supplying a unique perspective over a measuring system that can in the end be adopted as a way of operating in a industry, rather than just calculating performance of the company. The healthy scorecard (Kaplan & Norton, 1992), with its four perspectives, targets finance, customers, inside processes and technology and learning. In doing so it downplays the value of other stakeholders, such as suppliers and employees. The business superiority model (EFQM, 1991) combines results, that are commonly measurable, with enablers, a few of that are not. Shareholder value frameworks (Bender &Ward, 2008) include the expense of capital into the equation, but disregard all aspects relating to stakeholders. Both activity structured costing (Kaplan & Bruns, 1987) and cost of quality (Feigenbaum, 1991), on the other palm, concentrate on the recognition and control of cost individuals, non-value-adding activities that are themselves often embedded available operations. The major criticisms of these systems are that this clearly ignores any other perspectives on performance, those being the desires and needs of shareholders, customers and employees. As almost a direct complete opposite to these solutions, benchmarking (Camp, 1989) tends to involve taking a largely external perspective, often checking performance with this of opponents or other 'best professionals' of business techniques. However, this type of activity is generally pursued as a one-off exercise towards making ideas for short-term improvement initiatives, as opposed to the design of a formalised ongoing performance way of measuring system.

The fact that so several process already are present suggests that do not require have been completely successful in fulfilling the needs of any broader opportunity of organisations, even though all of them clearly can truly add some element of value to a organisation who adopts such initiatives. Each can offer management with a way of measuring and assessing the different parts of the organisation associated with performance. Depending after the situation an organisation confirms itself in, an explicit concentrate on shareholder value, and ignoring other areas of functions may be the most likely action to take. In another situation, or even in the same organisation but at a new time, this initiative may have destructive results. Then, perhaps, a conclusion to adopt the balanced scorecard or the business quality model may be the right course of action to take. New management in a organisation, who may have inherited too overt an ongoing focus on short-term shareholder value, may find these frameworks a useful vehicle to help switch attention more on the interests of customers, ventures in process improvement or the development of progressive products and services. The main element is to discover that, despite the claims of a few of the proponents of these various frameworks and methodologies, there exists no person 'holy grail' of performance management tools or easiest way to see business performance. Through the Performance Prism, Neely, Adams and Kennerley suggest the explanation for this is the fact business performance is itself a multi-faceted notion (Neely & Adams, 2002).

A prism refracts light. It illustrates the hidden complexness of something as apparently simple as white light. That is highly relevant to the thinking behind Neely's (2002) style of the Performance Prism. It illustrates the complexness of performance measurement and management. Neely (2002) argues that single dimensional, traditional frameworks only grab elements of this intricacy. He goes on to claim that while each of them offers a distinctive point of view on performance, they do not analyse the organisation from a performance perspective as an entire entity. The model looks for to combine five related perspectives and offer a structure which allows executives to think through the answers to five fundamental questions:

1. Stakeholder Satisfaction: Who are our stakeholders and what do they need and need?

2. Stakeholder Contribution: What do we want and need from our stakeholders?

3. Strategies: What strategies should be put in place to satisfy these models of wants and needs?

4. Functions: What functions do we need to put in destination to satisfy these pieces of wishes and needs?

5. Features: What capabilities - bundles of people, techniques, technology and infrastructure

do we have to set up in order to permit us to use our processes more effectively and efficiently?

(Neely & Adams, 2007)

Together these five viewpoints provide a comprehensive and designed platform for managing organisational performance and, by answering the related questions, organisations can build a structured business performance model.

Stakeholder Satisfaction

Organisations exist mainly to provide the product or service and to deliver 'value' to their key stakeholders. The word stakeholder can be used to describe a wide range of entities including buyers, customers, employees, suppliers, regulators and pressure teams. Freeman and Reed (1983) identified a stakeholder as any party that make a difference or be influenced by the actions of the business enterprise all together. The word 'Value' will be viewed dissimilarly for different stakeholder organizations; Customers typically will need speedy and reliable delivery of high quality products and services that provide good value for the money whereas employees will seek value by means of competitive compensation plans, training and development, and campaign prospects. Shareholders classification of the word value could be more concerned with return on the investment and the profitable expansion potential customers of the company relative to its rivals.

Stakeholder Contribution

'Organisations and their stakeholders have to discover that their human relationships are reciprocal' (Neely &Adams, 2007).

It must also be appreciated that for each stakeholder there is a 'quid pro quo': what the organisation desires and needs from stakeholders as well as the particular stakeholder would like and needs from the company. This is a dynamic and subtle anxiety that exists between your two pieces of entities. For instance, whilst customers require simple availability, rate of delivery, competitive price and quality, the organisation ask them to be devoted and engaging. Likewise employees would like to have jobs that provide them purpose, good compensation, promotion potential customers and training whilst employers want for loyalty, flexibility, productivity, and creativeness.


When particular stakeholders' needs and needs have been strongly proven, management must then opt to what extent they'll prioritise the stakeholders' satisfaction in the strategies which the organisation develops to provide the requisite stakeholder value, while simultaneously ensuring that its requirements are being found. Delivery of long-term stakeholder value may very well be the 'vacation spot' whilst strategy can be viewed as the chosen path to eventually reach that destination.


The chosen strategy must be underpinned by procedures aligned and designed to assist in its successful accomplishment. Operations are what make the organisation work and will be the mechanisms for this attaining its goals and objectives. They can be essentially cross-functional and signify the blueprints for what work is done where and when, and how it will be carried out. Many organisations consider their highest level business techniques in four different categories:

1. Development of products and services

2. Generation of demand for them

3. Fulfillment of demand for them

4. Overall planning and management of the enterprise

Each of the categories are often underpinned by way of a various range of sub-processes, intended to help the organisation function at an most effective level of efficiency and performance (Hall & Johnson, 2009).


Processes cannot basically function without any suggestions from people within the organisation. They might need labour with certain skills, some guidelines and techniques about the way things are done, some physical infrastructure for this to happen plus some technology to permit or improve it. They are capabilities which is often defined as the combination of your organisation's techniques, technology and infrastructure that collectively symbolizes that organisation's ability to make value because of its stakeholders through its process businesses.

  • More than 7,000 students prefer us to work on their projects
  • 90% of customers trust us with more than 5 assignments
submit a project

Latest posts

Read more informative topics on our blog
Shiseido Company Limited Is A Japanese Makeup Company Marketing Essay
Marketing Strength: Among the main talents of Shiseido is its high quality products. To be able to satisfy customers, the company invested a great deal...
Fail To Plan You Plan To Fail Management Essay
Management This report will concentrate on two aspects of project management, their importance within the overall project management process. The report...
Role of High-protein Diet in Weight Management
Nursing Structured Representation: Probably one of the most wide-spread and popular problems on earth is the weight problems that people is suffering...
Waste To Prosperity Program Environmental Sciences Essay
Environmental Sciences Urban and rural regions of India produce very much garbage daily and hurting by various kinds of pollutions which are increasing...
Environmental Studies Pollution Introduction Many people across the world can remember having walked on the street and seen smoke cigars in the air or...
Soft System Methodology
Information Technology Andrzej Werner Soft System Methodology can be described as a 7-step process aimed to help provide a solution to true to life...
Strategic and Coherent methods to Recruiting management
Business Traditionally HRM has been regarded as the tactical and coherent method of the management of the organizations most appreciated assets - the...
Religious Healthcare Organisation
Health Religious Health Care Introduction I help the firm of consulting. Spiritual HEALTHCARE of Middleville community have appointed us to identify and...
Enterprise Rent AN AUTOMOBILE Case Analysis Business Essay
Commerce With a massive network of over 6,000 local rental locations and 850,000 automobiles, Organization Rent-A-Car is the greatest rental car company...
Check the price
for your project
we accept
Money back
100% quality