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Hi,
Let me ask several questions about the Performance prism.
1. Can you provide a short guide (route) in which way the Performance prism can be tested.
2. For all I understood the Performance prism model is similar to the other modules except for areas of measurement. For all I understood we need to decide themselves what to measure. For example, our customers need quality; so measure – number of compliant about bad quality. In order to assure quality we need strategy: investment in new machine and trainings for employees; measure: certificate awarded, new machine installed in time. To invent in new machine I need capability – money; so measure bond issued at lower rate. Or for people – number of qualified specialist hired.Can you please comment whether I am right in interpretation of the model. Please, correct my thinking if I am wrong.
Thank you in advance.
It is similar to the other models, but they should all require measurement.
The PP uses says that to deliver a stategy the organisation needs processes, and processes depend on capabilities. So if the strategy were low cost, the organisation needs efficient production processes which in turn need capabilities (resources and competences) such as modern machinery and well-trained operators. Additionally, the PP asks what our stakeholders want from us (here, cheap goods) and what we want form them (large orders to enable long production runs).
The subject would probably be asked by presenting a short scenario and asking you to analyse it in terms of PP.
See SA article March 2012
I suppose PP will be tested in a scenario which asks candidates to identify the stakeholders for the company and their influence using Mendelow’s framework (4 marks). then, it may ask what strategies, processes and capabilities would be required to satisfy a particular stakeholder’s requirements, asking how to measure the achievement, testing various other related models such as value chain in the question
Dear Tutor,
The Performance Prism model is a performance measurement tool. This means that it is used for control and not for planning.
I am not sure whether I understand where it would fit in the rational model or the performance hierarchy. Can you please help.
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