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| Section | Objectives |
|---|---|
| Topic 1: KPI Selection | - KPI selection for organizational scorecard - KPI selection techniques - KPI selection sources |
| Topic 2: The World of KPIs | - The value added by KPIs - KPIs concept map - Challenges in performance measurement - Organizational levels - Governance |
| Topic 3: Data Gathering | - KPI reporting data sources - KPI activation techniques - Community of Practice - Guidelines to improving - Data quality dimensions - Communication with data custodians - KPI activation tools |
| Topic 4: KPI Taxonomy | - KPI DNA map - KPI use case scenarios - Interdisciplinary systemic worldview |
| Topic 5: Understanding KPIs | - KPI lifecycle - KPI related terminology - SMART objectives decomposed |
| Topic 6: KPI Documentation | - Weights and Indexes - Organizational KPI libraries development - KPI documentation process - KPI documentation form design - KPI documentation form functions |
| Topic 7: KPI Measurement | - Change log - KPI report - Data gathering communication |
| Topic 8: KPI Selection at Operational Level | - Department scorecard - Operational dashboard |
| Topic 9: Working with Targets | - Challenges in working with targets - Negative behaviors when setting - Targets in practice - KPI documentation processes |
| Topic 10: KPI Project Coordination | - KPI project plan - Primary and secondary data sources - KPI workshop briefing pack - The business case for KPI implementation |
| Topic 11: Data Visualization | - Guidelines to design efficient templates - Best practices in scorecard design - Scorecard and dashboard examples - Best practices in dashboard design - Usability in terms of visual design |
| Topic 12: KPI Typology | - Leading vs lagging KPIs - Qualitative vs quantitative KPIs - Efficiency vs effectiveness KPIs |
| Topic 13: KPIs in Context | - KPIs cascaded to functional area - KPI selection for industry |
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NEW QUESTION # 68
How often should KPIs be modified?
Answer: D
Explanation:
KPIs should be modified when strategy, operating model, or material conditions change -not on a fixed calendar. Option D captures best practice: stable KPIs enable trend analysis and accountability, but rigidity can make KPIs irrelevant when priorities shift (new product, new market, regulatory changes, restructuring).
A key measurement challenge is over-modification: changing definitions or KPIs too frequently breaks comparability and invites gaming. The solution is governance: version control, documentation updates, and clear rules for when a KPI change is justified (e.g., objective changed, definition wrong, data source replaced, KPI no longer drives decisions). Many organizations review KPIs quarterly or annually, but that is a review cadence , not a mandate to modify. Most KPIs should remain stable, with changes treated as controlled exceptions. Strong KPI management balances continuity (to track improvement) with adaptability (to stay aligned). When KPIs are adjusted, communicate changes clearly and maintain historical mapping where possible so performance analysis remains credible.
NEW QUESTION # 69
Fill in the blank word: "A measurable expression for the achievement of a desired level of results in an area relevant to the evaluated ________'s activity."
Answer: B
Explanation:
A KPI is commonly defined as a measurable expression of performance in an area relevant to the evaluated entity's activity. "Entity" is the most inclusive and correct term because KPI systems can be applied at multiple levels and units: an organization, a department, a team, an individual, a facility, a program, or even a supplier relationship-each can be an "entity" being evaluated. Using "company" or "organization" narrows the scope unnecessarily, and "team" is too specific. This definition supports cascading: the same KPI principles apply whether you're evaluating the whole enterprise (strategic outcomes), a department (operational performance), or an individual (role-relevant contribution). It also reinforces proper design: KPIs must align to the entity's objectives, be controllable where possible, and be supported by reliable data. A common pitfall is selecting KPIs that do not match the evaluated entity's sphere of influence, leading to frustration and disengagement. Using "entity" in the definition emphasizes that KPI design must be tailored to context and accountability.
NEW QUESTION # 70
Which of the statements below represents a stage of the Value Flow Analysis?
Answer: A
NEW QUESTION # 71
Which value driver will influence "Service quality index"?
Answer: B
NEW QUESTION # 72
Which of the following is an efficiency KPI?
Answer: B
Explanation:
Efficiency KPIs measure how well resources are converted into outputs-typically cost, time, or effort per unit of output . "Cost per delivered order ($)" is a direct efficiency KPI because it expresses the resources spent to deliver one unit of service/output. "Production output (#)" is an output/volume measure, which is important but does not describe resource use per unit (it can increase even if efficiency worsens). "Employee satisfaction (%)" is an outcome/people metric, not efficiency. Selecting efficiency KPIs requires careful definition of included costs (labor, logistics, overhead allocation) and consistency across periods; otherwise, performance swings may reflect accounting changes rather than operational improvements. A common pitfall is optimizing efficiency at the expense of effectiveness (quality, customer outcomes). To prevent this, efficiency KPIs are often paired with effectiveness or quality KPIs (defect rate, on-time delivery, customer satisfaction) so teams don't reduce costs by cutting corners. Proper KPI documentation and balanced scorecards keep efficiency improvement aligned with overall value delivery.
NEW QUESTION # 73
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