Performance Prism

The Performance Prism is a performance management tool similar to the Balance Scorecard, focusing on stakeholders rather than just internal strategies. It connects company strategies, processes, and capabilities with stakeholder satisfaction and contributions. The tool assigns quantifiable metrics to evaluate how well processes meet company objectives, emphasizing stakeholder involvement in achieving the firm's mission and goals.

What is the primary goal of both the Performance Prism and the Balanced Scorecard?

• To increase shareholder value

• To align a firm's mission, vision, values, and strategy with its goals and objectives

• To focus solely on internal processes

• To reduce operational costs

How does the Performance Prism differ from the Balanced Scorecard?

• It does not use quantifiable metrics

• It ignores customer satisfaction

• It emphasizes external stakeholders first

• It focuses on financial metrics only

Who are considered stakeholders in the Performance Prism framework?

• Only shareholders

• Only employees

• All parties with a vested interest in the company

• Only customers

What is the purpose of assigning quantifiable metrics in the Performance Prism?

• To reduce the number of employees

• To focus on internal processes only

• To increase the number of stakeholders

• To evaluate the extent to which processes achieve the firm's objectives

In what way does the Performance Prism aid management?

• By reducing costs

• By linking strategies to key elements and planning processes

• By focusing only on financial outcomes

• By ignoring stakeholder contributions