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ACCA Strategic Professional · Advanced Performance Management · Non-financial performance measurement

Brevia Telecom uses the Performance Pyramid. Its customer satisfaction score at business operating system level has fallen. Analysis shows the cause is long call-handling cycle times in the support centre. Which feature of the Performance Pyramid does this analysis best illustrate?

The case shows that in the Performance Pyramid objectives flow down from the corporate vision while measures flow up from operations. This links external effectiveness, such as customer satisfaction, to internal efficiency, such as cycle time, so a fall in one can be traced to the other.

  1. AThe pyramid separates financial from non-financial measures so they are never linked
  2. BThe pyramid has no feedback mechanism, so the cause cannot be found
  3. CThe pyramid is a purely external view focused on shareholders
  4. DObjectives flow down from corporate vision while measures flow up from operations, linking external effectiveness to internal efficiencyCorrect

Explanation

The pyramid has objectives cascading downward and measures reported upward. External effectiveness measures (customer satisfaction) are linked to internal efficiency measures (cycle time). Claiming it has no feedback or separates measures misrepresents the framework.

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