Performance pyramid
You'll learn how the performance pyramid framework helps organisations align operational activities with strategic objectives by balancing financial and non-financial measures across all management levels.
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In this lesson
- 0:00 Performance pyramid overview
- 0:26 Pyramid structure and levels explained
- 1:09 Learning the pyramid for exams
- 1:32 Objectives flow down measures flow up
- 2:23 Key principles and balance
- 3:02 Linking operations to strategic goals
- 3:43 Advantages of the framework
- 4:10 Limitations and potential conflicts
About this lesson
This video covers Lynch and Cross's model, showing how customer needs sit at the centre, objectives flow downward, and performance measures flow upward through the organisation. You'll explore the pyramid's four levels—from corporate strategy and market/financial objectives through to operational quality, delivery, and waste metrics—and understand how external, customer-focused measures (left side) balance internal, financially-focused measures (right side). This framework is essential for Performance Management papers, helping you recognise how lower-level operational performance directly enables higher-level strategic success, and you'll see both the advantages (comprehensive, systematic measurement linking strategy to operations) and limitations (shareholder focus, implementation costs, and potential conflicts between measures).
Duration: 5m
Transcript
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