Overview

In this lesson

1. 0:00 Performance hierarchy overview
2. 0:19 Components of the hierarchy explained
3. 1:17 Strategic tactical operational levels
4. 2:52 Alignment and consistency requirements
5. 4:03 Volkswagen Group real-world example
6. 6:04 Conflicting objectives and priorities
7. 7:20 Planning and control framework
8. 8:12 Testing hierarchy in exams
9. 9:12 Planning and control at all levels

About this lesson

The performance hierarchy consists of four interconnected levels: mission statement, performance objectives, critical success factors, and key performance indicators. You'll discover how these levels must align vertically (from strategic to tactical to operational) and horizontally (across departments) to ensure consistency and drive organisational success. Through practical examples like Volkswagen Group's shift to electric vehicles, you'll see how strategic objectives cascade down through divisional and departmental plans, with performance measures flowing back up to the board. This framework is frequently tested in the APM exam, particularly around identifying misalignment between objectives and understanding how conflicting departmental priorities can undermine strategic goals. By mastering the performance hierarchy, you'll be able to diagnose why organisations fail to deliver on their objectives and design coherent planning and control systems that keep every level of the business working towards the same mission.

Duration: 11m