A framework to review Performance Prism

Abstract

Purpose

The purpose of this paper is to develop an exclusive review framework for the 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 and provides a foundation for further empirical research.

Originality/value

The paper adds to the body of literature, by proposing a comprehensive review framework to be used in Performance Prism.

Citation

Najmi, M., Etebari, M. and Emami, S. (2012), "A framework to review Performance Prism", International Journal of Operations & Production Management, Vol. 32 No. 10, pp. 1124-1146. https://doi.org/10.1108/01443571211274486