5 P’s Model

5 P’s Model Concept: 5 P’s Model, developed by Mildred Golden, Chris J. White and Leslie A. Toombs, is a strategic management model that resorts to the…

5 P’s Model Concept

5 P’s Model, developed by Mildred Golden, Chris J. White and Leslie A. Toombs, is a strategic management model that resorts to the alignment of five key variables to improve the organization and its operations, namely: Purpose, Principles, Processes, People and Performance:

  • Purpose: includes all elements that form the organizations’ purpose, namely the mission, vision, targets and aims and strategies;
  • Principles: are the guiding principles, philosophies or assumptions that guide the own organization and its business; this variable includes ethic and own organizational culture;
  • Processes: variable that represents organizational structure, internal systems, rules and procedures used by the organization to produce its products and services;
  • People: people or teams that perform a job in a coherent manner with the principles and processes of the organization to achieve its goals;
  • Performance: includes all performance metrics, measures and results that should be used as support or aid to the decision taking.

For an organization to be efficient and effective is needed that all five variables are in consonance as a way to mutually support and reinforce themselves.

Incompatibilities or inconsistencies among the variables leads to time, energy and money losses, and can also lead to employees’ frustration and discouragement.

Beyond strategic management, 5 P’s model can also be used in quality management, organizational evaluation and change management.

Steps for the 5 P’s Model implementation:

  • Purpose: identify the main strong points, weak points, opportunities and threats, identify the mission, vision, goals and organizational strategies;
  • Principles: identify organizational culture and values;
  • Processes: list all processes and draw them using flux grams, process maps, etc; identifying responsible for each process;
  • People: determine on which measures people are qualified for the duties they perform; identify the training needs;
  • Performance: identify used performance measures; establish key performance indicators (KPI’s); set up a metric system.
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