Proceedings of the 3rd European Conference on Intellectual Capital

Unclear benefits <strong>of</strong> obtaining certification.
Angelos Vouldis and Angelica Kokkinaki
Some researchers query on <strong>the</strong> effectiveness <strong>of</strong> <strong>the</strong> ISO 9000 series quality management system.
Terziovski et al. (2003) found that ISO 9000 certification did not have a significantly positive
relationship with organisational performance. Yeung et al. (2003) revealed that senior executives’
incorrect understanding <strong>of</strong> ISO 9000 and attitudes to <strong>the</strong> international standards are <strong>the</strong> main cause
<strong>of</strong> <strong>the</strong> ineffectiveness <strong>of</strong> ISO 9000 implementation. Brown & Wiele (1998) found that lack <strong>of</strong>
commitment from employees and managers is <strong>the</strong> most frequently mentioned problem faced by Small
to Medium Enterprises (SMEs) in implementing ISO certification.
5. The Performance Prism
The Performance Prism is a measurement framework designed to assist performance measurement.
It was developed by <strong>the</strong> Centre for Business Performance at Cranfield School <strong>of</strong> Management, in
conjunction with Accenture company. It developed from <strong>the</strong> Balanced Scorecard, as a second
generation <strong>of</strong> performance measurement framework which considers <strong>the</strong> wants and needs <strong>of</strong> all <strong>the</strong>
organisation's stakeholders. Neely et.al (2001) described <strong>the</strong> Performance Prism consists <strong>of</strong> five
interrelated facets as shown figure 5.
Figure 5: The five facets <strong>of</strong> <strong>the</strong> Performance Prism (from Neely et.al, 2001)
At <strong>the</strong> first facet comparing with <strong>the</strong> balanced scorecard view <strong>of</strong> stakeholders are included additionally
to customers and stakeholders <strong>the</strong> employees, suppliers, alliance partners or intermediaries, <strong>the</strong> local
community. The second facet concentrates on Strategies. It explored <strong>the</strong> issue <strong>of</strong> what strategies
should be put in place to ensure <strong>the</strong> wants and needs <strong>of</strong> <strong>the</strong> stakeholders are satisfied. The fourth
facet <strong>of</strong> <strong>the</strong> Performance Prism, <strong>the</strong> Capabilities facet are <strong>the</strong> combination <strong>of</strong> people, practices,
technology and infrastructure that toge<strong>the</strong>r enable execution <strong>of</strong> <strong>the</strong> organisation's business
processes.
The fifth and final facet <strong>of</strong> <strong>the</strong> Performance Prism is <strong>the</strong> Stakeholder Contribution facet. This facet
organisation has been entering into a relationship with <strong>the</strong>ir stakeholders which should involve <strong>the</strong>
stakeholders contributing to <strong>the</strong> organisation.
The model is used a set <strong>of</strong> performance measures that help deliver <strong>the</strong> wants and needs <strong>of</strong> both <strong>the</strong>
organisation and its key stakeholders using strategy maps identifying <strong>the</strong> objectives and drivers <strong>of</strong>
performance that are inherent in <strong>the</strong> organisation’s strategy. The maps are usually developed in
cross-functional management workshops. The performance prism enables a balanced picture <strong>of</strong> <strong>the</strong>
business to be provided, significantly highlighting external and internal measures, as well as enabling
financial and non-financial measures and measures <strong>of</strong> efficiency and effectiveness (Neely, 2002). It
drills down from strategies to processes and to capabilities; <strong>the</strong> performance prism achieves a
comprehensiveness and wide-angle view that o<strong>the</strong>r business performance measurement frameworks
lack (Adams & Neely, 2000). However, as Medori & Steeple (2000) state that it is provided little
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