The Pyramid of Organizational Development as a Performance Measurement Model

If a comprehensive performance model for business is to be useful in an analytic and predictive sense, the model must capture the interrelationships of factors that influence organizational performance such as organizational maturity, size, products and services, management systems, industry characteristics, and environmental influences. Flamholtz includes a number of key factors in his model. However, Flamholtz's explication of the factors does call into question some aspects of the model. For instance, Flamholtz explicitly equates level of sales revenue with specific growth stages of the organization and implicitly equates level of sales revenue with the maturity of the organization. Although these factors may be correlated in many organizations, care must be taken so that the comprehensive performance model does not confound key factors.