ACCA Strategic Professional · Advanced Performance Management · Performance hierarchy
Zenith Retail plc has a board that sets a ten-year vision of becoming the region's most trusted grocer. Regional managers then translate this into three-year market share targets, and store managers set weekly targets for waste and queue times. Which level of the performance hierarchy do the store managers' weekly waste and queue-time targets represent?
They are operational-level targets. Weekly waste and queue-time measures relate to day-to-day processes within stores and have a very short time horizon, whereas strategic targets concern long-term direction and tactical targets cover medium-term goals set by regional or functional managers.
- AStrategic level, because they support the vision
- BOperational level, because they are short-term and process-focusedCorrect
- CTactical level, because they are expressed as numerical targets
- DCorporate level, because they apply across the whole group
Explanation
The performance hierarchy separates strategic (long-term direction), tactical (medium-term, resource and functional focus) and operational (day-to-day processes) levels. Weekly waste and queue-time targets concern day-to-day activities in stores, so they are operational. Being numerical or supporting the vision does not make them strategic or tactical.
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