Performance Prism

What is Performance Prism?

Second Generation Management Accounting Tool. Developed by Neely and Adams of Cranfield University The Performance Prism: The Scorecard for Measuring and Managing Business Success by Andrew Neely Acca Global

Includes:
Stakeholder Satisfaction. Stakeholder Contribution. Strategies Processes Capabilities

1. Stakeholder Satisfaction Identifying Stakeholders. Identifying their wants. Performance Measures to monitor how well the Company is doing to meet these needs.
2. Stakeholder Contribution What Organizations need from Stakeholders. Measures to monitor Whether or not are stakeholders providing it.

3. Strategy Means to achieve the goal. Ensure that the wants and needs of its stakeholders are satisfied, while ensuring that its own requirements are satisfied too. 4. Processes Determine Whether have the right business processes to support the strategies 5. Capabilities Capabilities are the people, practices, technologies and infrastructure required to enable a process to work

Capabilities

Stakeholder Satisfaction

Stakeholder Contribution

Processes

Strategy

Performance Prism at Dabur

Stakeholders Satisfaction
Investors:
Moderate Returns on Stocks and Debentures. Safety of Investment.

Consumers:
Quality Products Low Cost. Availability

Regulatory Bodies:
Full Disclosure of Information. Payment of Dues on Time

Employees:
Constant up gradation of skills. Rewards & Incentives

Stakeholders Contribution
Investors:
Adequate Supply of funds Low Cost of Capital Bigger time for repayment

Consumers:
Brand Loyalty Repeat Purchases

Regulatory Authorities:
Provision of Land at Concessional Rate. Tax Breaks for setting up Plants in backward areas.

Employees:
Low Turnover. Long working hours. Multiplicity of skills. Ethical Orientation.

Strategy
Setting up Plants in Places, where states provide significant tax concessions. Cover every part of the Country. Direct Shipment Strategy. Diversifying Product Portfolio Setting up wholly owned subsidiaries. Focus on Emerging Markets. Regular Incentives and Training to Emoloyees.

Processes
Contract Farming Stockist transaction software Drishtito cover almost 75% of business, gathering real-time market information. Shifting all commercial non manufacturing transactions to a central location. Outsourcing of IT to Accenture. Internal Audit carried on by PWG Sales Forecasting through APO module of SAP: uses historical sales trends, seasonal fluctuality and sales promotion.

Capability
2.8 million retail outlets. The installation of new herbal extractors at Baddi, Pantnagar and Sahibabad, replacing the old extractors Herbal waste used as a fuel in boiler. Reuse of vacuum pump cooling water for make up in cooling tower "LEAD - Leadership Excellence Achievement @ Dabur "Career Development Centre (CDC)"