Performance Pyramid
From MediaWiki
Cross and Lynch 1991 viewed businesses as performance pyramids
- Objectives are top down and measurements are top up
- Quality and delivery should equal Customer satisfaction but watch that Reducing costs do not lead to a fall in staisfaction
- The left side are external influences and the right is internal
- It starts at the individual level all the way to corporate level
- Provides a more integrated approach than Fitzgerald and Moon
- Focuses on the right priorities
Performance measurements Benefits and Problems
- Develops agreed Measures
- Clarifies the Objectives of the Org
- Greater understanding of Process
- Helps faciitate comparison between divisions
- Promotes Accountability to stakeholder
- Helps sets Targets for managers
Problems
- Tunnel Vision - Undue focus on measurements to the detriment of other areas (e.g Doctors must see a patient in 48 hours)
- Sub-optimizatoin - focus on one measurement to the dertiment of others
- Myopia. Focusing too much on short-term measures and not looking looking long-term
- Measurement fixation- meeting student quotas but leading to higher drop out rates
- Misrepresentation - Not presenting the data correctly
- Mis-intrepreting the data -
- Ossification - keeping of out of date measures
Stakeholders
Who are they?, how many?, what to they want?, do they want the same things?, what is the time frame?
