ACCA Applied Skills · Performance Management · Performance analysis
Which of the following statements about the Performance Prism is correct?
The Performance Prism starts with stakeholders' wants and needs, then considers strategies, processes, capabilities and what the entity needs from stakeholders. It is not limited to four perspectives or to shareholders.
- AIt starts from stakeholders' wants and needs, then considers strategies, processes, capabilities and stakeholder contributionCorrect
- BIt begins with strategy and then derives measures for four fixed perspectives
- CIt focuses only on shareholders and the financial return
- DIt classifies measures as inputs, outputs and outcomes only
Explanation
The Performance Prism has five facets: stakeholder satisfaction, strategies, processes, capabilities and stakeholder contribution, and starts with stakeholders. It is not limited to four fixed perspectives (Balanced Scorecard) and is not shareholder-only. The inputs, outputs and outcomes description is a public sector approach.
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