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Business Diagram Knowledge

What is Performance Prism

Perform an in-depth analysis of your stakeholders
prism

Why They Named it as a "Prism"?

Neely and Adams, who invented Performance Prism, had introduced the performance measuring system to mainly check the overall performance of any organization and determine whether they are satisfying the needs of the stakeholders efficiently and also meeting their requirements.

A prism can reflect white light and scatters/bifurcates into various beams of colors. Thus, it reveals the complexity of something that looks simple, but there is much complexity hidden inside it. Similarly, the performance prism method reveals the complexity hidden behind the process on which a company runs. It bifurcates the simple mechanism into five different facets and allows us to examine them minutely to derive the growth of the overall business.

The 5 Facets of Performance Prism

Five key factors construct the mechanism of Performance Prism. They are as follows:

1. Stakeholders Satisfaction

How to satisfy our stakeholders? What do they want to get from us to continue a long-term relationship which benefits both the stakeholders and the business itself? Typically, there can be five different types of stakeholders in any organizational environment: Investors, Customers, Employees, Suppliers, and Regulators. We need to understand and analyze what they want from the business and how to meet their requirements.

2. Strategies

The strategies need to satisfy the stakeholders’ needs and, also meet the organizational requirements. Here we need to verify these four key factors, such as:

  • Whether the strategies are implemented correctly.
  • Whether the strategies are communicated correctly to all the stakeholders.
  • Whether the strategies are appreciated by all the stakeholders and encouraged by the managers.
  • Whether any changes are required to bring in to the strategies to make it appropriate.
3. Processes

When determining strategies that you are going to implement, it is important to decide what processes you need to execute these strategies.

4. Capabilities

Whether the company is capable of running the business processes smoothly and grows further with the resources that are already in place. Also, what capabilities and core competencies are needed.

5. Stakeholders Contribution

The Performance Prism tool not only talks about what the stakeholders require from the organization but also what the organization demands from each stakeholder.

performance prism

Image Source: researchgate.net

If all these factors are justified and appropriate, it's evident that the process will run smoothly according to the strategies and bring successful outcomes that satisfy the stakeholders' needs as well as meet the organization's requirements.

Performance Prism is a highly-advanced performance measuring framework that has brought considerable improvements to the organizations that have implemented it. But apart from all the positive features, it also has a few demerits! Find out the points below to understand the performance prism framework in more detail.

performance prism in Edraw Max

Pros:

  1. Easy to Use
  2. When you build the framework ultimately, it becomes effortless to understand the entire process and track the overall performance.

  3. Easy to Modify
  4. The more the design is bifurcated or segmented, the easier it becomes to modify/customize the framework. Even you can customize the tiny portions of the entire structure based on the requirements.

  5. Accurate Results
  6. As the analysis process is in detail, it requires domain knowledge and experience, which makes it complicated to explain.

Cons:

  1. Complex Analysis
  2. As the analysis process is in detail, it requires domain knowledge and experience. The explanations are complex.

  3. Graphical Representation is Not Easy
  4. There are many segments and bifurcations, the more they are, the easier it is to understand. But putting them altogether graphically is not an easy task unless you use a diagramming software like Edraw Max.

  5. Need Qualified Resources to Handle
  6. There are many segments and bifurcations, the more they are, the easier it is to understand. But putting them altogether graphically is not an easy task unless you use a diagramming software like Edraw Max.

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