Professional Documents
Culture Documents
Level 2:
This focuses on the achievement of an
organization’s CSFs in terms of market-related measures
and financial measures. The marketing and financial
success of a proposal is the initial focus for the
achievement of corporate vision.
Level 3:
The marketing and financial strategies set at level 2 must
be linked to the achievement of customer satisfaction,
increased flexibility and high productivity at the next level.
These are the guiding forces that drive the strategic
objectives of the organization.
Level 4:
The status of the level 3 driving forces can be monitored
using the lower level departmental indicators of quality,
delivery, cycle time and waste.
The left hand side of the pyramid contains measures
which have an external focus and which are predominantly
non-financial. Those on the right are focused on the
internal efficiency of the organization and are
predominantly financial.
The one drawback of the performance pyramid is that it
does tend to concentrate on two groups of stakeholders,
i.e. shareholders and customers. It is necessary to ensure
that measures are included which relate to other
stakeholders as well.
STRONG POINTS
• Attempt to integrate corporate objectives with operational
performance indicators
• manage PM strategically
WEAK POINTS
• does not provide any mechanism to identify key performance
indicators
The measures chosen must make use of both financial and non-
financial information in such a manner that is of value to
departmental managers. In addition, the availability of the
correct information as and when required is necessary to
support decision-making at all levels within an organization.
The real value of the system lies in its ability to focus all
business activities on the requirements of its customers.
ARITCLE 2:
Performance Pyramid come from the idea that organization
operate at the different level, each of which has different
concern which should nevertheless in achieving business
objectives. This concept also believe that the business strategy
link to day to day operations.