Business Performance Management Strategic Planning and Goal Setting 1 — Questions and Answers
Question 1: What is the primary purpose of a SWOT analysis in strategic planning?
- To calculate financial ratios for investor reporting
- To assess internal strengths and weaknesses alongside external opportunities and threats (Correct answer)
- To map customer journey touchpoints across channels
- To evaluate employee performance against job descriptions
Correct answer: To assess internal strengths and weaknesses alongside external opportunities and threats
SWOT analysis helps organizations understand their internal capabilities and external environment to inform strategic decisions.
Question 2: Which strategic planning framework distinguishes between 'mission,' 'vision,' and 'values'?
- Six Sigma DMAIC
- OKR framework
- Strategic management framework (Correct answer)
- PDCA cycle
Correct answer: Strategic management framework
The strategic management framework uses mission (purpose), vision (future state), and values (guiding principles) as the foundation for strategic direction.
Question 3: OKR stands for:
- Operational Key Results
- Objectives and Key Results (Correct answer)
- Organizational KPI Review
- Output and Knowledge Resources
Correct answer: Objectives and Key Results
OKR (Objectives and Key Results) is a goal-setting framework that pairs ambitious qualitative objectives with measurable key results.
Question 4: In strategic planning, a 'PESTEL' analysis examines which factors?
- Personnel, Equipment, Systems, Training, Evaluation, Leadership
- Political, Economic, Social, Technological, Environmental, Legal (Correct answer)
- Profitability, Efficiency, Scalability, Transparency, Equity, Liquidity
- Planning, Execution, Staffing, Tracking, Evaluation, Learning
Correct answer: Political, Economic, Social, Technological, Environmental, Legal
PESTEL analysis scans the macro-environment across Political, Economic, Social, Technological, Environmental, and Legal dimensions.
Question 5: What is a 'strategic gap' in performance management?
- The time between strategy formulation and first execution step
- The difference between desired future performance and current performance (Correct answer)
- A missing KPI in the Balanced Scorecard
- The variance between actual and budgeted costs
Correct answer: The difference between desired future performance and current performance
A strategic gap identifies where current performance falls short of the organization's stated strategic goals, guiding where improvement efforts are needed.
Question 6: Which of the following BEST describes a 'strategic initiative' versus an 'operational task'?
- Strategic initiatives are daily operational activities; operational tasks are multi-year projects
- Strategic initiatives address long-term, cross-functional priorities that move the organization toward its vision (Correct answer)
- Strategic initiatives are managed by individual employees; operational tasks involve teams
- Strategic initiatives are always technology-related; operational tasks are people-related
Correct answer: Strategic initiatives address long-term, cross-functional priorities that move the organization toward its vision
Strategic initiatives are significant, often cross-functional efforts specifically designed to achieve strategic objectives, distinct from routine operational work.
Business Performance Management Strategic Planning and Goal Setting 1
What is the primary purpose of a SWOT analysis in strategic planning?