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The Performance Prism model has been developed in close co-operation by the Centre for Business Performance at Cranfield School of Management (formerly at University of Cambridge) and the Process Excellence Core Capability Group of Andersen Consulting.The Performance Prism (PP) is referred to by its Cranfield University developers as a ‘second generation’ scorecard and management framework. The unique characteristic of the Performance Prism is that it uses as its starting point all of an organisation’s stakeholders, including investors, customers and intermediaries, employees, suppliers, regulators and communities, rather than strategy. According to Performance prism proponents, strategy should follow from stakeholder analysis. The Performance Prism framework also focuses on the reciprocal relationship between the organisation and its stakeholders, as opposed to just stakeholder needs.
The Performance Prism allows organisations to develop strategies, business processes and measures geared to the specific needs of all important stakeholder groups. By considering a broad stakeholder perspective that includes regulators and business communities, the performance prism enables an organisation to more directly address the risks and opportunities in its business environment. Using the Performance prism to develop measures for each relevant stakeholder facilitates the communication and implementation of strategy.