The Performance Prism is a second generation performance measurement and management framework that has been developed by Neely, Adams and Kennerley to further aid organisations in their pursuit of measuring the overall performance of their operations. The creators of this model suggest that for organisations operating within almost any given industry, the most important aspect of management is to deliver on the expectations of the stakeholders associated with that organisation. The Performance Prism is designed to help with the complex relationships that organisations often possess with their various stakeholders within the context of its operating environment. It provides an innovative and holistic framework that directs management attention to what is important for long term success and viability and helps organisations to design, build, operate and refresh their performance measurement systems in a way that is relevant to the specific issues that they face within their given industry.
This model attempts to distinguish itself from other similar models such as the Balanced Scorecard by offering a unique perspective on a measuring system that can ultimately be adopted as a way of operating within an industry, rather than just measuring performance of the organisation. The balanced scorecard, with its four perspectives, focuses on finance, customers, internal processes and innovation and learning. In doing so it downplays the importance of other stakeholders, such as suppliers and employees. The business excellence model combines results, which are readily measurable, with enablers, some of which are not. Shareholder value frameworks incorporate the cost of capital into the equation, but ignore all aspects relating to stakeholders.… Read the rest
Fitzgerald and Moon’s Building Block Model suggests the solution of performance measurement problems in service industries. But it can be applied to other manufacturing and retail businesses to evaluate business performance.
Fitzgerald and Moon has provided a framework for performance management in service organization using three criteria, called as building blocks, they include, standards of performance (against these dimensions are measured to review performance), rewards for performance (rewards are necessary for achieving standards of performance) and dimensions of performance (these are measures of performance).
1. Standards: You can think of standards as rules that employees of a company must follow in order to achieve the long term objective of the organization. For the standards to be motivating enough, it must have three important ingredients. These ingredients are;
- Equity: Performance measures should be equally challenging for all parts of business. Relaxation given to one part of the business leads to perception of unfair treatment which hinders productivity.
- Ownership: Performance measure should be acceptable to everyone. Employees should be got involved in the identification of measures rather than being imposed on them. Ownership means here is responsibility for the results.
- Achievable: Performance measure should be realistic. Eg. Using actual results for the competitors to set as target. Employee will not be motivated to achieve targets if consider them impossible.
2. Rewards: In line with Vroom’s valence theory, managers expect to be rewarded not just for doing their job but for doing it right. To be effective, the components of rewards must be clear, concise, motivating and controllable by the employees.… Read the rest
Corporate Parenting is a strategy employed by highly centralized and diversified firms with large resource pools. It views the corporation in terms of resources and capabilities that can be used to build business units value as well as generate synergies across business units. Corporate parenting generates corporate strategy by focusing on the core competencies of the parent corporation and on the value create from the relationship between the parent and its businesses.
There are basically three styles of corporate parenting as follows; financial control, strategic planning and strategic control.
- Financial Control: Under this style the role of the corporate parent is to monitor and evaluate the financial performance of investment portfolio of the respective business units. The corporate managers act as agents on behalf of share holders and financial markets to identify and acquire viable assets and businesses. The business unit managers are given the autonomy to carry out business activities and make decisions at their level. However the corporate parent sets performance standards for control purposes.
- Strategic Planning: Under this style the role of the corporate parent is to enhance synergies across the business units. This may be achieved through envisioning to build a common purpose, facilitating cooperation across businesses and providing central services and resources.
- Strategic Control: Under this style the corporate parent leverages its resources and competences to build value for its businesses.
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There are some gaps in between a company and its customers. These gaps are due to customer expectation with the brand and that expectation is not met with the actual brand offerings including other factors, which made customer experience not only negative but at the level of irritation. This customer irritation ultimately turns into brand irritation if necessary actions are not take.
Brand irritation word coined by the Mr Alison Eastwood in the year 2003 in his article named “Brand irritation”. But in this article he had discussed on the term brand integration (the use of commercial products in the story line of a television show, film, etc. and involving the development of specific objectives, strategies, plans, and tactics to drive the business) and connecting it with the use of brand integration in American idol and same kind of initiatives adopted by other brands. He relates it with out of box thinking, failure of advertising and brand integration.
Brand irritation is a particular case where consumer recognizes brand on a negative note due to bad experience with the brand. It does not only deal with the negative or bad experience with the brand but the irritation caused to customer due to various factors involved. These factors made irritated to the customer at the level that any product where brand name is associated with, customer responded negatively. For an example if customer purchase a product of brand “ABC” but after some time customer felt that sales personnel mis-sell him by hiding important information about the product.… Read the rest
Organizations now are using a unique approach to provide training internally by outsourcing their training departments. This they have found is a way that reduces costs improves productivity and relives them from the need of constant upgradation. Handing over the organizations training function over to “experts” in many ways also improves the quality of training. These experts have a lot of advantages; they are constantly upgrading themselves to differentiate themselves from the competition and add value to their clients, by virtue of the multiple clients they serve – they have an upfront feel of the best industry practices; training costs can be tracked more objectively and can help align your training’s with your strategic objectives in a far better manner.
Outsourcing of training and development activities means comprehensive, end-to-end outsourcing—from the management of the training function to the design, delivery and reporting. Training BPO refers to the transfer of management and execution of one or more complete ongoing training and development processes or the entire training function to an external services provider. For many companies, outsourcing employee training and development makes financial as well as business sense.
Outsourcing of training and development functions makes a lot of sense for most organizations. The training function is often a decentralized operation. Most companies are unsure of how much they spend on training across the enterprise, and don’t really know what or how much they need. Of course the process of identification, analysis, design, development, deployment and evaluation varies from group to group, department to department and division to division, even within an organization.… Read the rest