What is performance pyramid, Strategic Management

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Q. What is performance pyramid?

The performance pyramid 

Like the balanced scorecard or 6-dimensional performance matrix, the performance pyramid is a multidimensional model developed by McNair et al (1990).   In comparison the performance pyramid does apply performance measurement better to the 'chain of command' e.g.  The lines of authority and responsibility, by which decisions are passed along. Levels of hierarchy or scalar chain exist in order to cascade decisions, instructions, plans and objectives, often top-down within the organisation.

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  • Corporate objectives e.g. improve shareholder value.
  • Business unit objectives e.g. measures for 'results' framework of financial and competitive (market) for every division.
  • Business operating systems (processes) and departments e.g. measures for the key business operational activities of the organisation, such as efficiency, productivity, resource utilisation, customer satisfaction, complaints, quality or flexibility. On a daily basis operational level other measures involve lead (cycle) times, delivery times, absenteeism, staff turnover, rejects and wastage levels.

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