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A Framework to Review Performance Prism

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  • Purpose – The purpose of this paper is to develop an exclusive review framework for Performance Prism. Design/methodology/approach - An extensive literature survey on performance measurement is used to identify the main aspects of the review in such systems. Various dimensions related to the characteristics of Performance Prism are explored. All the findings are then rationally put together to develop the proposed conceptual framework. Findings - The paper presents a conceptual model to review performance measurement systems (PMS) which are designed based on Performance Prism. The presented framework categorizes review processes and tools into two main categories; Business Performance Review (BPRw) and Performance Measurement System Review (PMSR). In BPRw, a loop is presented in three levels -with regards to the five facets of Performance Prism- which indicates the performance management process. PMSR deals with reviewing the efficiency and effectiveness of the design and implementation of the PMS itself. Several methods and tools have been gathered from the literature (e.g. relevance test, measures profile, etc) in this section to examine the relevance of measures, and some have been introduced (including a method to determine inconsistencies in organization's performance trends between stakeholder, strategic and operational level) to study and challenge the validity of strategic assumptions and strategies, and appropriateness of infrastructure. Implications of various factors such as organizational culture, change management, and characteristics of the measures (level of the measure, managers who receive reports including the measure, and supporting infrastructure) are highlighted. Research limitations/implications – In contrast to PMS design and implementation, research on PMS review is limited. This is more evident in the literature concerning Performance Prism. The empirical evidence of usefulness is beyond the scope of this article. Practical implications - The framework provides a procedural action for reviewing both business performance and PMS performance when applying the Performance Prism in practice. It provides a foundation for further empirical research. Originality/value - This study adds to the body of literature, by proposing a comprehensive review framework to be used in Performance Prism.
  • This is the author's peer-reviewed final manuscript, as accepted by the publisher. The published article is copyrighted by Emerald Group Publishing and can be found at: http://www.emeraldinsight.com/products/journals/journals.htm?id=ijopm.
  • Keywords: Performance Measurement System Implementation Review, Business Performance Review, Performance Measurement System Design Review, Performance Prism
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  • Manoochehr Najmi, Mohammad Etebari, Samin Emami, (2012) "A framework to review Performance Prism", International Journal of Operations & Production Management, Vol. 32 Iss: 10, pp.1124 - 1146
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  • 32
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  • 10
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