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Chapter 11
The performance pyramid
4.1 What is the performance pyramid?
Level 1
Objectives Measures
Level 2 Divisions/SBUs
Business operating
Level 3
systems
Level 4 Departments
External effectiveness Internal efficiency
Level 1: Vision outlines how organisation will achieve its success and
competitive advantage
Level 2: Achievement of market related and financial CSFs is initial focus of
achievement of strategy
Level 3: Level 2 strategies are linked to achievement of these three factors –
these drive the organisation’s strategic objectives
Level 4: Used to monitor status of level 3 factors
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