Performance Pyramid

Cross and Lynch 1991

• Objectives are top down and measurements are top up
• Quality and delivery should equal Customer satisfaction and so but watch that Reducing costs dont lead to a fall in staisfaction
• The left side arer external influences and the right is internal
• Its starts at the individual level all the way to corp level
• Provides a more integrated approach than Fitzgerald and Moon
• Focuses on the right priorities

Also look at http://www.accaglobal.com/publications/studentaccountant/43909

Performance measurements Benefits and Problems

• M Develops agreed Measures
• O Clarifies the Objectives of the Org
• P Greater understanding of Process
• C Helps faciitate comparison between divisions
• A Promotes Accountability to stakeholder
• T Helps sets Targets for managers

Problems

• Tunnel Vision - Indue focus on measurements to the detriment of other areas (Dr must bee a patient in 48 hrs)
• Sub-optimizatoin - focus on one measurement to the dertiment of others
• Myopia. focusiing too much on s-t measures and looking looking l-t
• Measurement fixation- meeting student quotas but leading to higher drop out rates
• Misrepresentation - Not presenting the data correctly
• Mis-intrepreting the data -
• ossification - keeping to out of date measures

Stakeholders Who are they, how many, what to they want, do they wan the same things, whats the time frame