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CMA Final · Strategic Performance Management and Business Valuation · Performance Measurement, Evaluation and Improvement Tools

In the Performance Prism framework, which one of the following correctly describes how it begins its design of a performance measurement system?

The Performance Prism starts by identifying what each key stakeholder group wants from the organisation and what the organisation needs from them. Strategies, processes and capabilities are then derived from this. It is stakeholder-led and is not driven by budgets, internal processes or competitor copying.

  1. ABy defining internal process targets and then deriving customer measures from them
  2. BBy identifying what each key stakeholder group wants and what the organisation wants from themCorrect
  3. CBy setting the financial budget and cascading it to departments
  4. DBy benchmarking against the best competitor and copying its measures

Explanation

The Performance Prism is stakeholder-centred. It starts with stakeholder satisfaction and stakeholder contribution, then moves to strategies, processes and capabilities. The option about internal process targets reverses this order and resembles a process-led approach, not the Prism.

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