Performance hierarchy
A performance hierarchy connects mission and corporate goals with business-unit, functional and operational objectives and measures. It helps align local actions with the organisation’s direction while allowing evidence to flow upward. The hierarchy should show causal and responsibility links, not merely arrange the same generic indicators at different levels. Check for conflicts between targets, time horizons and units before using it for rewards or resource allocation.
Worked example
A strategic reliability aim leads to divisional service commitments, process-quality targets and daily delivery checks, with exceptions escalated to the appropriate level.
Common mistake
A department can meet its own target while undermining the strategy if the links and trade-offs are poorly designed.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |
| ACCA | BT | Direct | September 2026–June 2027 |
| ACCA | PM | Direct | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |