Part 2 - Pyramid

Question 1

What is The performance pyramid

Answer 1

present the LINKAGES between an organisation’s CORPORATE VISION and its DAILY OPERATION.

• Corporate level
• Strategic level
• Operation level

Question 2

Corporate level

Answer 2

Vision, financial and market objectives

Question 3

Strategic business unit level

Answer 3

(i) Customer satisfaction is defined as meeting customer expectations.
(ii) Flexibility indicates responsiveness of the business operating system as a whole.
(iii) Productivity refers to the management of resources, such as labour and time.

Question 4

Operational level

Answer 4

(i) QUALITY: consistency of product and fit for the purpose
(ii) DELIVERY of the product or service (the method of distribution, its speed and ease of management)
(iii) PROCESS TIME (or cycle time) of all processes from cash collection to order processing to recruitment
(iv) WASTE, meaning the elimination of all non-value-added activities

Question 5

Benefits of performance pyramid

Answer 5

+ The performance pyramid covers BOTH FINANCIAL AND NON-FINANCIAL performance, which can help to achieve long-term future financial performance
+ The elements of the pyramid are INTERRELATED, and each level in the pyramid supports the one above it
+ OBJECTIES CASCADE DOWN the pyramid from the strategic to the operational level
+ The pyramid ensures that all aspects, BOTH INTERNAL AND EXTERNAL, of performance are measured