Performance measurement Models

Dear Bham, as Seanog91 advised you above all performance measurement models have their own strenths and weaknesses and there is no perfect model, “no one-size fits all” model.

The BSC is a good model that links strategy/mission with operational activities, includes all relevant variables both financial and non-financial, short-term and long term objective. However, it has its weaknesses like conflict among objectives, two many measures and lack of one agreegate measure of performance; focuses only on two stakeholders (customer and owner) and ignores others, etc.

Although performance pyramid is a good model that perfectly links stqartegic issues with operational activities and clearly show the links under each level of management, it doesn’t clearly shows measures and is not suitable for service businesses.

The building block model is a good model to measure operformances of service businesses, but is not that much good for manufacturing business.

The performance prism model is an excellent model to see analysis importance and requirements of many stakeholders and to show what the company requires from each stakeholder to build the required capacity and meet statkeholders’ requirements, but still it is short of clear measures and can’t be considered as a perfect model.

So, it depends on the scenario and the specific circumstances that we determine which model is suitable to which buiness.

Think this will give you some hint…good luck!!!

Great.!!!