Performance Pyramid
From Wikireedia
(Difference between revisions)
(→Criticisms) |
|||
| (2 intermediate revisions by one user not shown) | |||
| Line 1: | Line 1: | ||
| − | The Performance Pyramid also know as the ''SMART'' Strategic Measurement and Reporting Technique by [[author::Cross]] and [[author::Lynch]] 1991 viewed businesses as performance pyramids | + | The Performance Pyramid also know as the ''SMART'' Strategic Measurement and Reporting Technique by [[author::Cross]] and [[author::Lynch]] 1991 viewed businesses as performance pyramids. The attractiveness of this framework is that it links the business strategy with day-to-day operations. |
[[File:cross&lynch1991.gif|Cross and Lynch 1991]] | [[File:cross&lynch1991.gif|Cross and Lynch 1991]] | ||
| Line 9: | Line 9: | ||
* Provides a more integrated approach than [[Fitzgerald and Moon]] | * Provides a more integrated approach than [[Fitzgerald and Moon]] | ||
* Focuses on the right priorities | * Focuses on the right priorities | ||
| + | * Uses both financial and operational information to support the decision-making process | ||
==Performance measurements Benefits and Problems== | ==Performance measurements Benefits and Problems== | ||
* Develops agreed Measures | * Develops agreed Measures | ||
| − | * Clarifies the Objectives of the | + | * Clarifies the Objectives of the Organisation |
* Greater understanding of Process | * Greater understanding of Process | ||
* Helps faciitate comparison between divisions | * Helps faciitate comparison between divisions | ||
| Line 33: | Line 34: | ||
==Criticisms== | ==Criticisms== | ||
| − | Terms are so broad that it is difficult to put in to practice | + | *Terms are so broad that it is difficult to put in to practice. |
| + | *Shareholders are not explicitly considered (just the stakeholders), hence performance measurement is not extended to include Shareholders objectives. At least not directly | ||
== See also== | == See also== | ||
| Line 39: | Line 41: | ||
* [[Fitzgerald and Moon]] | * [[Fitzgerald and Moon]] | ||
*http://www.som.cranfield.ac.uk/som/dinamic-content/research/cbp/IJOPM2010.pdf | *http://www.som.cranfield.ac.uk/som/dinamic-content/research/cbp/IJOPM2010.pdf | ||
| + | |||
| + | <comments /> | ||
| + | |||
[[Category:Operations]] | [[Category:Operations]] | ||
__NOTOC__ | __NOTOC__ | ||
Latest revision as of 13:38, 13 September 2012
The Performance Pyramid also know as the SMART Strategic Measurement and Reporting Technique by Cross and Lynch 1991 viewed businesses as performance pyramids. The attractiveness of this framework is that it links the business strategy with day-to-day operations.
- 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
- Uses both financial and operational information to support the decision-making process
[edit] Performance measurements Benefits and Problems
- Develops agreed Measures
- Clarifies the Objectives of the Organisation
- Greater understanding of Process
- Helps faciitate comparison between divisions
- Promotes Accountability to stakeholder
- Helps sets Targets for managers
[edit] 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
[edit] Stakeholders
Who are they?, how many?, what to they want?, do they want the same things?, what is the time frame?
[edit] Criticisms
- Terms are so broad that it is difficult to put in to practice.
- Shareholders are not explicitly considered (just the stakeholders), hence performance measurement is not extended to include Shareholders objectives. At least not directly
[edit] See also
- Balanced Scorecard
- Fitzgerald and Moon
- http://www.som.cranfield.ac.uk/som/dinamic-content/research/cbp/IJOPM2010.pdf
<comments />
