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Abstract
This paper provides an analysis concerning the practical utility of a performance management tool which has been utilized by a number of organizations around the globe. The Performance Prism (Neely, Adams, & Kennerley, 2002) is based on the concept that satisfaction of organizational stakeholders is directly correlated to organizational performance and success. The tool has been an addition to the field of organizational performance management systems such as the Balanced Scorecard (Kaplan & Norton, 1992, 1996) and its many derivatives which have become industrystandard practice for many organizations of various type, size, and purpose. The various components of The Performance Prism are discussed followed by a case study examining its specific utility within a for-profit organization-DHL. It is argued that this unique performance management tool can provide organizations with various benefits in terms of their development and overall organizational success. However, further empirical studies are required in a number of areas relating to its application which are outlined at the conclusion of the current paper.
Introduction
Although Williams (2003) claims there is evidence to suggest that some local and state authorities have been involved in the analysis of data and target setting for future performance forecasting as far back as the early 1900s, the term 'performance management' was first referred to by Aubrey Daniels in the late 1970s (Daniels, 2004; Armstrong & Barron, 2005). Since that time, performance management has evolved to become a well-established process that is embedded within the cultures of many private and public entities and has been a point of interest for scholarly research since the mid-1990s with a number of journals even devoting special issues to the subject (Ferlie & Steane, 2002). There is no one single definition for the term within the literature, however there is a general consensus that performance management covers all aspects of an organization's operations. It can be viewed as a holistic approach to performance that spans numerous performance dimensions that are fundamental to the effective delivery of an organization's mission.
Within the literature, successful performance management has also been referred to as a tool or system thatalignsallorganizationalprocesses with the existing strategic imperatives within an organization (Kaplan & Norton, 1992, 1996; Neely, Adams & Kennerley, 2002; Franco & Bourne, 2003). This system must...