Performance Pyramid
The Performance Pyramid links corporate vision and business objectives with operational performance measures at progressively lower levels. It seeks consistency between strategic aims, market and financial results, business-process priorities and departmental measures such as quality, delivery, cycle time and waste. Objectives cascade down while operational evidence feeds upward. The framework highlights external effectiveness and internal efficiency but must be tailored to the organisation and supported by clear data and accountability.
Worked example
A strategic promise of reliable rapid service is translated into process flexibility and departmental delivery and cycle-time measures rather than an isolated short-term cost target.
Common mistake
Do not merely draw the hierarchy; explain how a proposed operational measure supports the strategy and where conflicting targets could arise.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |